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In Biden Climate Act and EPA disclose that the United States is poised to dramatically reduce carbon emissions by 35-43% from 2005 levels by the year 2030. This substantial reduction is attributes to the Inflation Reduction Act (IRA). It is a pivotal policy initiative by President Joe Biden in August 2022.
IRA Fuels Green Transformation
President Biden’s IRA represents a monumental shift in the nation’s climate policy landscape. The act leverages billions of dollars in tax credits to empower consumers to adopt electric vehicles. While, incentivizing companies to ramp up renewable energy production.
EPA’s Comprehensive Analysis of Biden Climate Act
The EPA’s exhaustive analysis delved into the wide-reaching impacts of the IRA. Thus, an estimating staggering $391 billion in support for climate and clean energy programs.
Carbon Emissions on a Downward Trajectory
As per the EPA report, the US market will experience a decline in annual carbon dioxide emissions. By 2035, the median emissions are projected to be 3,300 metric tons. It a significant drop from the 6,130 metric tons recorded in 2005. Therefore, without the IRA, emissions is considerably higher at 4,100 metric tons. Thus, equivalent to shutting down a staggering 214 coal-fired power plants.
Praise for Climate Action
John Podesta, a senior White House adviser on clean energy, lauded the EPA’s report, emphasizing that it demonstrates how the agency has “supercharged climate action in the United States Biden Climate Act.”
Green Energy Dominance
The EPA’s analysis also indicates that CO2 emissions from electricity production is set to decline. However, this number is declining by a remarkable 49% to 83% by 2030, compared to 2005 levels. This transformation is primarily driven by the increase utilization of solar and wind energy sources. Moreover, the models suggest that electricity-related CO2 emissions will be approximately half of what they would have been.
Future Considerations
It’s worth noting that the EPA’s modeling does not account for the potential impact. This impact of a contentious plan unveiled in July. However, this plan aims to curtail U.S. power plant emissions through widespread adoption of carbon capture and green hydrogen technologies.
Disclaimer: This article serves solely for informational purposes and should not be construe as financial advice. Thus, we strongly advise readers to conduct thorough research and consult with financial professionals before making any investment decisions.
