Inflation Reduction Act of 2022

Last updated: 11 December 2023

In August 2022, the U.S. Congress approved the Inflation Reduction Act (IRA) of 2022, combining the objectives of reducing domestic inflation - notably brought by the global energy crisis - while tackling climate change.  A key stated goal of the act is to reduce carbon emissions by around 40 percent by 2030.

The IRA includes a combination of grants, loans, tax provisions and other incentives to accelerate the deployment of clean energy, clean vehicles, clean buildings and clean manufacturing. This includes investments in deploying clean energy, expanding the electricity grid, developing domestic clean technology manufacturing, incentivising uptake of electric vehicles, reducing methane emissions, increasing the efficiency of buildings, improving the climate resilience of communities, and other areas.  In total, around 370 billion USD will be disbursed for measures dedicated to improving energy security and accelerating clean energy transitions.  The specific programs fall under multiple provisions covered by separate entries in the database.

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