A year ago, the U.S. Congress passed the most ambitious climate legislation in its history: the Inflation Reduction Act (IRA). The IRA, along with other laws, aimed to transform the U.S. economy, create millions of good-paying jobs, and put the country on a path to net-zero emissions by mid-century.
But the IRA did not only affect the U.S. It also had a profound impact on the rest of the world, as it restored U.S. credibility and leadership on the global stage and encouraged other countries to raise their ambition and cooperation on climate action.
The IRA included a border carbon adjustment, which imposed a fee on imports from countries that did not have comparable climate policies. This created a level playing field for trade and investment and incentivized other major economies to develop their own competitive climate plans.
For example, China, the world’s largest emitter of greenhouse gases, announced that it would peak its emissions by 2030 and achieve carbon neutrality by 2060. India, another major emitter, pledged to increase its renewable energy capacity to 450 gigawatts by 2030 and reduce its carbon intensity by 33-35% from 2005 levels. Japan and South Korea also committed to reaching net-zero emissions by 2050.
The IRA also pledged to double U.S. climate finance to developing countries, which are most vulnerable to the impacts of climate change and need support to transition to low-carbon development. This helped to rebuild trust and solidarity between rich and poor nations, which had been eroded by the previous administration’s withdrawal from the Paris Agreement.
The U.S. also joined forces with the European Union to launch the Global Methane Pledge, which aimed to reduce global methane emissions by at least 30% by 2030. Methane is a potent greenhouse gas that contributes to global warming and air pollution. More than 100 countries have signed up to the pledge, which could avoid nearly 0.3 degrees Celsius of global warming by 2040.
The IRA has spurred a race to the top, as countries have realized that taking action on climate change is not only a moral duty, but also an economic opportunity. By investing in clean energy, innovation, and resilience, countries can reduce their carbon emissions and enhance their domestic economies, jobs, health, and equity.
However, the IRA is not enough to solve the climate crisis. The U.S. still needs to phase out fossil fuels completely and rapidly, especially coal, oil, and gas. It also needs to scale up adaptation and resilience measures, especially for the most vulnerable communities. And it needs to keep up the momentum and pressure its leaders to deliver on their promises and commitments.
As President Joe Biden said, “The Inflation Reduction Act is a historic achievement, but it is only the beginning.” And as climate activist Greta Thunberg said, “We are the last generation that can prevent a climate catastrophe.”
Relevant articles:
– The Inflation Reduction Act Took U.S. Climate Action Global. Here’s What Needs To Happen Next, Time Magazine, August 16, 2023
– Biden to tout climate benefits of Inflation Reduction Act as White House announces visit to fire-ravaged Hawaii – live, MSN, August 16, 2023
– How the Inflation Reduction Act Has Reshaped the U.S.—and The World, Time Magazine, August 11, 2023
– Why the US Inflation Reduction Act is an important step in the transition to clean energy, World Economic Forum, August 22, 2023