USA | Progress in the implementation of the Inflation Reduction Act (IRA)

Summary

This article analyzes the main advances in the implementation of the Inflation Reduction Act (IRA), approved in the US in 2022. With a total budget of 416 billion dollars, it is the largest climate investment in the history of that country.

Key points

• Key points:
• The Inflation Reduction Act (IRA) is to date the largest climate investment in the history of the United States. It is part of a package of laws that seeks to reduce greenhouse gas emissions by up to 41% by 2030 compared to 2005 levels in that country.
• It is estimated that between 2023 and 2031, the IRA will have a total budget for clean energy and climate change that amounts to 416 billion dollars, divided into two large items: 1) an approximate 271 billion dollars in tax credits, and 2) 145 billion in financing programs such as loans, grants and direct federal spending.
• As of January 10, 2024, the federal government has committed $19.8 billion in public infrastructure programs, which represents around 14% to be disbursed by 2031 in financing programs.
• Projects located in more than one state currently represent 12.5% of the total committed. At the individual level, California ranks first, with 10% of the total, followed by Texas (5.8%) and Tennessee (3.8%).

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