In 2022, the Inflation Reduction Act (IRA) passed in Congress through President Joe Biden’s push for climate legislation. Hailed as a victory for some environmentalists, the Act has garnered criticism from many. Originally proposed in the form of the Build Back Better Plan, the measure did not pass and was rewritten as the IRA. The IRA is a toned-down version of the initially proposed bill. One of the biggest struggles for the United States to reach the Paris Agreement’s 50% carbon emission reduction goals by 2030 (compared to 2005 levels) remains political, not economic. Although there are numerous initiatives within the US to electrify the US economy and make sustainability a priority, the political agenda does not sufficiently address them.
The Build Back Better Plan was originally proposed in 2020 as a means of President’s Biden Administration addressing economic and environmental challenges faced by the United States. An ambitious goal was set with the newly introduced legislation. However, members of Congress, such as Senator Joe Manchin, a conservative Democrat from West Virginia, refused to sign the bill. Manchin and others in opposition tried to formalize negotiations that would reduce sustainability objectives set by the Build Back Better Plan, eventually transforming the bill into the drastically minimized Inflation Reduction Act.
Aptly named the Inflation Reduction Act, it was passed to shift the legislation’s focus to reducing the high inflation rate. In addition, Manchin and others opposed the Build Back Better Plan. They wanted to see legislation passed addressing the threat to national security posed by increasing U.S. tension with China and Russia. Manchin had stated that he believed national debt was a significant concern for the United States, and he opposed the Build Back Better Plan as he doubted that increasing national expenditure would help alleviate everyday costs for Americans.
Since the IRA was passed, additional legislation has followed, such as the U.S. Methane Emissions Reduction Action Plan. This plan aimed to decrease methane emissions by 30% from 2020 to 2030. Subsequent goals established by President Biden include 50% electric vehicle mobilization amongst American vehicles by 2030. However, reports such as the Fifth National Climate Assessment, released in late 2023, indicate that the need to address climate change must come through significant adjustment within society and industry sectors to reach Paris Agreement emission reduction goals by 2030.
Regenerative agriculture, climate technology, and investing in green infrastructure will help the United States achieve these goals by 2030. Shifting US investments in clean energy, such as electric vehicles, will help propel the economy into a new era of sustainability. Although Congress is currently divided on how to address climate change, it is evident that Americans are becoming more concerned about the environment. A survey by CNN found that 73% of adults supported the US cutting its emissions to half of its 2005 levels by 2030.
Members of Congress must understand that they must address climate change as an overall issue. For example, climate change directly affects affordable housing. With drastic weather events occurring, insurance for events such as flooding has increased, which puts homeowners in a tricky position. In addition, insurance agencies must also work with reinsurers and labor and supply costs for fixing homes affected by weather events. This affects the housing market and makes it more difficult for people to buy homes.
Finally, one of the main ways for the economy to ultimately reach the Paris Agreement’s goals by 2030 is to have bottom-up leadership. Power must be given to and subsequently drawn up from the people when addressing climate change. When individuals and groups such as businesses, nonprofits, and other informal groups dedicate themselves to addressing the climate crisis, people can bring their concerns to the forefront of current issues and prioritize them with their loved ones and neighbors. When we all talk about climate change and sustainability at work, we incentivize the government and those in power to hold accountable and continue US efforts to attain its ambitious goals.
This Post was submitted by Climate Scorecard US Country Manager Abigail Carlson.