04/22/2024 | News release | Distributed by Public on 04/22/2024 05:12
Leading up to Earth Day this year, I've been reflecting on the meaning and purpose of the annual celebration. Earth Day began under the Nixon Administration in 1970 as a day to support environmental protection and has grown to include nations and communities around the world in appreciation of Mother Earth.
Of course, like any other holiday, there have been instances of co-optation where big polluters seek to cover up their dirty deeds and greenwash their image by sponsoring Earth Day festivities. But I'm looking to celebrate the positives.
I've been to my fair share of trash cleanups, concerts, and craft fairs, but this year there's one big policy I want to focus on that I think deserves some credit on Earth Day: the Inflation Reduction Act (IRA).
Don't get me wrong, I still plan on showing some love for the planet this Earth Day, but I'm also grateful that the US was able to pass the IRA in 2022 because it represents the single biggest investment in cutting heat-trapping emissions in history (here's to you, Mother Earth). This super important bill is expected to result in $780 billion to $1 trillion in investments over 10 years that will drive down emissions, improve public health, and help protect the environment on our planet for future generations.
It's also worth noting that while the IRA will make a massive difference in our fight against climate change, it alone won't be enough to help us meet the US's Paris Climate Agreement commitment of reducing its economy-wide emissions by 50% to 52% by 2030. Together with existing state and federal policies including the Infrastructure Investment and Jobs Act (IIJA), the IRA puts the US on a trajectory of about 34% reductions (with recent estimates ranging from 27% to 42%). And even that's not a given.… How the programs and tax credits are carried out by federal and state agencies can affect the overall progress that can be made as a result of the IRA.
At UCS, we're working to ensure effective and equitable implementation of key clean energy and clean transportation provisions. The IRA also includes some less than ideal fossil-fuel supporting incentives that will need continued monitoring .
Now, like anything else passed by Congress, the devil will be in the details, or in this case, the implementation of all the programs established under the IRA.
There's an unprecedented amount of federal funding coming down the pike. This unprecedented amount of federal funding has mobilized nonprofit and community groups around the nation to help ensure the benefits flow to the people and places that deserve them. One of our jobs at UCS is to help make sure it winds up benefiting communities most in need. And those needs are great. Many Americans are still struggling to make ends meet while prices remain high. At the same time, energy burdens make utility bills unaffordable for many. Thankfully, the IRA aims to meet the White House's Justice 40 goals of delivering at least 40% of the benefits of these investments to disadvantaged communities.
So, what are we doing to help? UCS is working with coalition partners, our expert staff, and our extensive network of over 20,000 scientists and technical experts to help with the unprecedented need for technical assistance and grant reviews. Here are a few specific examples from UCS's Climate and Energy team:
It's important to note that many of the programs established or expanded under the IRA are yet to be established, and there is alot of money yet to be allocated. But, so far there's a lot to like.
A recent report from the US Department of the Treasury found most of the investments from the IRA so far have gone to underserved and frontline communities.
And MIT and the Rhodium Group have noted the following:
An updated analysis from US Treasury, including Q3 and Q4 data from 2023, also shows the continued increase in investments going toward these communities, with an additional $2.4 billion going to energy communities through the Energy Community Bonus tax credit (as opposed to $1 billion going to non-energy communities when compared to pre-IRA levels). However, it is worth noting, that analysis from the US Treasury counts all investments, including those that some environmental justice communities don't consider beneficial.
Interestingly, additional analysis shows that most funding from the IRA is flowing toward Republican-represented Congressional districts, even though not a single Republican voted for the measure.
It's still too soon to get a good sense of the planetary impacts the IRA will have, but as a big down payment on the US's contribution to global efforts, the initial outlook is promising. It's clear we've still got a long way to go to limit the worst impacts of climate change and keep planetary warming below 2 degrees, but I for one will be celebrating both our planet, and the IRA this Earth Day. Will you join me?