---
title: How the Inflation Reduction Act Shapes Clean Energy
description: The Inflation Reduction Act of 2022 includes the most spending any one nation has ever made to fight climate change at one time.
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-1.png "Why 2022 Has Become A Turning Point In the Fight Against Climate Change")
Sep 15, 2022
# Why 2022 Has Become A Turning Point In the Fight Against Climate Change
By: [Eitan Cohen](mailto:ecohen49@binghamton.edu), Marketing Intern
You may be astounded to learn that there are countries on this earth that are meeting upwards of 90% of their electricity needs from renewable sources. While these countries are in areas that are more naturally capable of sustaining renewable practices, there are just as many notable countries more like the USA who are making huge strides in sustainability. In 2012, Sweden reached their target of 50% renewable energy eight years ahead of schedule. By 2040 they are projected to easily meet their goal of 100% renewable energy production. Right now, Germany has a solid 49% of their energy sustainably sourced and hope to reach their 100% goal by 2035. The tide of sustainable practices in the USA has been rising for years now and with the recent passing of the Inflation Reduction act, they do not seem to be ebbing any time soon.
Over this past year, a significant swell in the prevalence of clean energy has been driven by the largest deployment of solar, wind, and batteries in United States history. Accordingly, the USA has become a whirlpool of investment in clean energy manufacturing. In June, President Biden authorized the use of the Defense Production Act to accelerate production of clean energy tech, spurred domestic solar manufacturing capacity using federal procurement, and created a 24-month bridge to ensure the reliable supply of components needed to construct clean energy projects. As formidable as that all sounds, the Inflation Reduction Act is to these advancements as a tidal wave is to a ripple.
The Inflation Reduction Act of 2022 includes the most spending any one nation has ever made to fight climate change at one time. The US government is heavily investing in domestic sustainable energy production and manufacturing. Before the passing of this bill, the goal was to reduce greenhouse gas emissions by 25% by 2030, with the passing of the Inflation Reduction Act, the goal has now been shifted to a 40% reduction. With each move the world makes towards sustainability, what is perceived as achievable becomes more and more dramatic. Potent acts of legislation such as these structure the channel that directs the flow of a sustainable future.
In total, the bill provides $369 billion in funding towards initiatives to incentivize the manufacturing of clean energy products, cutting down on emissions, and furthering environmental justice. The act expands tax credits for energy efficient commercial buildings, new energy efficient homes, and even electric vehicle charging infrastructure. Transitioning to sustainable practices never seemed so sweet! Furthermore, the expansion of tax credits includes clean energy production spanning from wind to carbon capture, to solar energy production and more. This act establishes provisions to ensure that American-made equipment is used for the impending surge of clean energy production. The crest of this climate conscious wave is impressively high; on August 23rd, the White House stated that the Inflation Reduction Act could cut the social costs of climate change by as much as $1.9 trillion by 2050.
For the past few decades, the transition to sustainable practices in the USA has been a slowly growing trend that is in more recent years gaining tremendous momentum. This trend has come with the attitude of planning ahead, having an edge, and projecting a socially responsible image. A proactive, forward-looking approach. With the tide of sustainability gaining a wicked pull, it seems as though to fight the current would certainly be unwise. Great strides such as the Inflation Reduction Act add incredible strength to the wave of clean practices and energy to come. Joining the trend of sustainability is becoming less about getting ahead as it about not getting left behind. We must ride the wave of sustainability towards a brighter, cleaner future, or risk being left out at sea.
.
---
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