WEMO24-Compiled Report-Interactive compressed (002) 4154-7882-8116 v.1 - Flipbook - Page 149
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ENERGY IN
THE REGIONS
Striking IRA old while it’s still hot Introduction
Miguel Sossa
VP
Americas Sustainability
Elfije Lemaitre
Executive Vice President - U.S. Resources &
Energy Transition Business Unit Lead
Mina Lee
North America GTM Capgemini, Group
Sustainability Accelerator
Farah Abi Morshed
Senior Strategy Manager – U.S. Resources &
Energy Transition Business Unit
The Inflation Reduction Act (IRA) has been effective in
accelerating clean energy development. To keep up with
this demand, the United States has accelerated policy
development to expedite the expansion of clean electric
generation and underlying transmission lines.
2. Revisions to tax incentives, including Direct Pay and
Transferability, has allowed local governments, public
utilities, and entities to ensure the advancement of planned
and ongoing renewable energy projects.
In 2022, the Biden Administration passed the Inflation Reduction
Act (IRA), landmark legislation and largest investment towards
reducing greenhouse gas emissions and the impacts of climate
change in United States history. The legislation's goals being to
decrease greenhouse gas emissions by 41% by 2030, compared
to 2005, levels and to achieve 100% carbon-/pollution-free
electricity by 2035.
In total, the IRA has earmarked $142 billion, including $37B for
federal loans and loan guarantees, and $105B for grants, awards,
and other direct spending by federal agencies. In addition,
the IRA has several tax credits which span across multiple
areas, which include renewable energy, electric vehicles and
infrastructure, and energy efficiency. The estimated value of
total tax credits could be between $780 billion to $1.2 trillion
over the IRA's 10-year life.
In the two years since the inception of the IRA, total American
investment has been ~$493 billion, with clean energy
and transportation seeing the largest investments. Clean
investments account for 5.5% of all investments, and account
for more than half of all USA private investment growth. Clean
energy production and industrial decarbonization is at $161
billion, with a utility scale solar at a 56% increase compared
to pre-IRA.
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