Media briefing: Anniversary of the US Inflation Reduction Act

Who:

Emma Pinchbeck, Chief Executive of Energy UK;

Mike Williams, Senior Fellow, Centre for American Progress;

Johanna Lehne, Programme Lead, E3G;

Munir Hassan, Partner and Head, CMS Energy & Climate Change Group;

Jess Ralston, Head of Energy, Energy and Climate Intelligence Unit (ECIU, Chair).

About

On August 16, 2022 President Joe Biden signed the Inflation Reduction Act (IRA) into law. The Act aims to spur investment in green technology in the United States by devoting $369bn in subsidies through grants, loans and tax credits to public and private entities, although the capacity of the Act to mobilise private investment means that billions of dollars more are expected to be invested.

The Act had an immediate and profound effect in the US and across the world, both because of the pull factor of sharply increased US funding and of requirements for producers to prioritise US supply chains. In response to this increased competition in the global green industry race, the EU introduced new legislation including the Net-Zero Industry Act (NZIA) and the Critical Raw Materials Act, aimed at both boosting Europe’s green industries and shoring up supply chains. The UK meanwhile has faced accusations from industry of being slow to respond, with a formal response not expected until the Autumn.

This briefing will therefore address:

• What impact of the Inflation Reduction Act has had in the US and globally one year on, including on shifting major low-carbon investments;
• How legislation such as the Net-Zero Industry Act has offset the impact of IRA on European low-carbon industries;
• How the UK is directly impacted by legislation in the US and EU, and whether it is falling behind international competitors in the global green industry race;

What other factors are having a major impact on developing or hindering the uptake of green industries.

If you are a journalist who would like to attend the briefing please contact George Smeeton: george.smeeton@eciu.net, t: +44 (0)7894 571 153.