Inflation Reduction Act's Meaning for Sustainability
President Biden has recently passed the Inflation Reduction Act into law. With it comes hope for lower carbon emissions, improved opportunities in eco-friendly job roles, and a sustainable road map in the USA and beyond.
In this blog post, we look to explain the new law and its policies. Consider how these policy changes should encourage thought-leaders to think sustainably when undertaking new business strategies or design projects.
View our range of eco-friendly projects and explore our use of energy-efficient designs
What is the IRA Law?
On Tuesday, 16th August 2022, President Joe Biden signed the IRA into law. The carefully considered "Inflation Reduction Act" is a piece of legislation that will tackle healthcare costs for millions of Americans. Its main aim will be to tackle rising national inflation costs in the economy by addressing the damage caused by climate crisis-related issues.
The bill aims to introduce policies to reduce the cost of traditional energy sources. These include new corporate minimum taxes, bulk-up in tax enforcement laws, and reforms in prescription drug policies. In doing so, the Inflation Reduction Act is estimated to raise almost $790 billion.
Of this, an estimated $369 billion will then be used to invest in and stabilize the country's efforts to harvest electricity from renewable energy projects. This world-leading strategy will create thousands of jobs nationally and boost the economy of our stagnating, traditional energy industry.
In addition, we at Jones Design hope to see added exposure for eco-ready businesses to further develop green strategies in business.
How it affects The Climate Crisis
We covered the efforts of our federal government to pursue preventative strategies for the changing climate in a previous blog post. Though, with this new law passed, we can hope to plan for a brighter future.
Experts have estimated that the IRA could cut our country's emissions by one billion metric tons. This figure represents 40% of the 50% reduction by 2030 that the US has set itself. This figure is calculated from 2005 emission and CO2 levels recorded nationwide in the United States.
How it affects Renewable Energy Sources
As mentioned above, the IRA law aims to use additional tax revenue to direct $369 billion to a complete transition to renewable energy. This is to reduce planet heating emissions.
The US accounts for roughly 13% of global emissions and greenhouse gases. This is caused by excessive use of harmful fossil fuels from traditional energy sources. So, efforts in harvesting renewable energy from sources such as solar energy, hydrogen, and wind-harvested kinetic energy to generate electricity are promoted with this new law.
President Biden wishes to encourage business leaders and industry experts to promote renewable energy sources and more sustainable processes by incentivizing their production and implementation.
In doing so, we should see an unprecedented wave of new opportunities in green and renewable energy sources while also offering benefits to existing sustainable businesses.
What it means for Sustainability
The new IRA law will shine a spotlight on the built environment, opening up new opportunities for developing sustainable projects and homes.
The industry-leading developments created by Jones Design - a woman-owned small business, environmentally conscious consulting and design firm - are some of the most sustainable projects undertaken in the USA today.
We believe that building beautifully and sustainably should be our new normal. Seeking new ways to build with the planet in mind is a must for our collective future. No matter the size or scope of your project, the team at Jones Design is ready to help.