Context
The U.S. Senate approved a bill titled the Inflation Reduction Act (IRA) 2022. The IRA has a special focus on climate, healthcare, and tax provisions to address inflation.
Background
Key Highlights of the Legislation:
Why does the U.S. want to invest in addressing climate change?
Issues with the bill:
Similar climate packages announced by other countries:
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Conclusion
This Bill could be a turning point for global climate action as the US is one of the largest emitters of greenhouse gases globally. However, it does not address any issues of global climate finance which is a major impediment to global climate action. It can be considered as baby steps toward achieving the climate target agreed upon in the Paris Agreement, where Article 2 states global temperature should be limited to below 2°C.
The bill may not be addressing the climate crisis holistically, but such historic initiatives by the US, which is also the largest contributor to greenhouse gas emissions can be a benchmark for other large emitters to push their climate action programs.
Verifying, please be patient.