Sunday May 28, 2023

New Proposed Bill In U.S. Inflation Reduction Act Could Boost Funding For Climate Technology

New Proposed Bill In U.S. Inflation Reduction Act Could Boost Funding For Climate Technology

Climate and energy projects could see $370 billion in fresh funding because of a proposed bill by Senate democrats called the Inflation reduction Act which revises the tax code and reduces the drug prices. In this new proposed bill there is going to be more technology investment and more direct procurement of green technology by the US government. There are more provisions for funding for agriculture sector, forestry sector and real focus for the disadvantaged population. This bill is a real game changer for climate tech and this would induce four times more funding than the last big federal infusion during the 2009 stimulus.

US citizens will now get a $7500 tax credit for buying an electric vehicle and $4000 for selling one. This reinforces the faith in electric vehicle industry. This bill is part of critical conversation between the federal government, investors, innovators and society to make a clean transition for a climate smart future.

This bill will give climate technology a tremendous boost. There is focus not just on the energy transition but to make the entire economy aware and resilient to climate change.

The proposed bill has three major components:

  1. Direct support for technology and $2 billion for National Labs for breakthrough energy research is provided. There first move provisions for smart climate agricultural support by direct grants and support through tax credits.
  2. There is lot of pull through demand that’s created by creating incentives, tax credits and so on to accelerate the adoption of clean technology by consumers and industry.
  3. The government itself is a direct actor in procuring over $ 9 billion dollars in clean tech as well as becoming a more resilient economy and distributing grants to disadvantaged population. Increasing focus to the underserved population is crucial to ensure a smooth transition to clean tech.

This transition is now a climate 2.0 strategy where it’s not just about buying electric vehicles or reductions in greenhouse gas emissions. It’s also about building resiliency in all communities. There was a clear trend observed that the impact of the Covid-19 pandemic was the worst where the impact of environmental pollution was the highest. Therefore, the US government is looking towards a more resilient future as well as a low carbon future.

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