Inflation Reduction Act touted by Joe Biden

Inflation Reduction Act (IRA) lowers global costs of decarbonization says Joe Biden at COP27.

Share:

Subscribe for unlimited access to all energy sector news.

Over 150 multisector articles and analyses every week.

Your 1st year at 99 $*

then 199 $/year

*renews at 199$/year, cancel anytime before renewal.

Inflation Reduction Act (IRA) lowers global costs of decarbonization says Joe Biden at COP27. This law will, according to him, allow the cost of clean energy to be lowered on a global level.

An American vision

The $368 billion Inflation Reduction Act will support numerous investments in clean energy technologies. Among the means of action used, we note the extension and increase of tax credits for renewable energy. Subsidies for electric vehicles are also included in this text.

The IRA provides a strong incentive to increase clean hydrogen production. Thus, Joe Biden states:

“Our investments in technology, from electric batteries to hydrogen, will spark a cycle of innovation that will reduce the cost and improve the performance of technology and clean energy that will be available to nations around the world, not just the United States. We will help make the transition to a low-carbon future affordable for everyone.”

This could have an indirect influence on the global transition to zero carbon.

The U.S. President is banking on increased production and export capabilities through the IRA. Thus, the worldwide diffusion of cheap hydrogen could lead to a strong increase in demand. However, not all countries adhere to this vision.

Europe is skeptical

Indeed, spending under this law is concentrated exclusively within the United States. Developing nations, on the other hand, argue for loss and damage financing to their advantage. The European Union is also concerned about the potential trade impact of the IRA.

The Inflation Reduction Act makes the United States much more attractive than Europe for clean energy investments. The fear of a trade war between the United States and the European Union is arising among European leaders. In order to address the European Union’s concerns, an IRA task force is in place.

This committee held its first meeting in early November. However, it does not seem to be able to dispel fears of a trade war. Brussels expresses concern about discriminatory elements of the IRA.

Brazilian authorities have launched a large-scale operation targeting a money laundering system linked to the fuel sector, involving investment funds, fintechs, and more than 1,000 service stations across the country.
A national study by the Davies Group reveals widespread American support for the simultaneous development of both renewable and fossil energy sources, with strong approval for natural gas and solar energy.
The South Korean government compels ten petrochemical groups to cut up to 3.7 million tons of naphtha cracking per year, tying financial and tax support to swift and documented restructuring measures.
The U.S. Department of Energy has extended until November the emergency measures aimed at ensuring the stability of Puerto Rico’s power grid against overload risks and recurring outages.
Under threat of increased U.S. tariffs, New Delhi is accelerating its energy independence strategy to reduce reliance on imports, particularly Russian oil.
With a new $800 million investment agreement, Tsingshan expands the Manhize steel plant and generates an energy demand of more than 500 MW, forcing Zimbabwe to accelerate its electricity strategy.
U.S. electric storage capacity will surge 68% this year according to Cleanview, largely offsetting the slowdown in solar and wind projects under the Trump administration.
A nationwide blackout left Iraq without electricity for several hours, affecting almost the entire country due to record consumption linked to an extreme heatwave.
Washington launches antidumping procedures against three Asian countries. Margins up to 190% identified. Final decisions expected April 2026 with major supply chain impacts.
Revenues generated by oil and gas in Russia recorded a significant decrease in July, putting direct pressure on the country’s budget balance according to official figures.
U.S. electricity consumption reached unprecedented levels in the last week of July, driven by a heatwave and the growth of industrial activity.
The New York Power Authority targets nearly 7GW of capacity with a plan featuring 20 renewable projects and 156 storage initiatives, marking a new phase for public investment in the State.
French Guiana plans to achieve a fully decarbonised power mix by 2027, driven by the construction of a biomass plant and expansion of renewable energy on its territory.
The progress of national targets for renewable energy remains marginal, with only a 2% increase since COP28, threatening the achievement of the tripling of capacity by 2030 and impacting energy security.
A Department of Energy report states that US actions on greenhouse gases would have a limited global impact, while highlighting a gap between perceptions and the economic realities of global warming.
Investments in renewable energy across the Middle East and North Africa are expected to reach USD59.9 bn by 2030, fuelled by national strategies, the rise of solar, green hydrogen, and new regional industrial projects.
Global electricity demand is projected to grow steadily through 2026, driven by industrial expansion, data centres, electric mobility and air conditioning, with increasing contributions from renewables, natural gas and nuclear power.
Kenya registers a historic record in electricity consumption, driven by industrial growth and a strong contribution from geothermal and hydropower plants operated by Kenya Electricity Generating Company PLC.
Final energy consumption in the European industrial sector dropped by 5% in 2023, reaching a level not seen in three decades, with renewables taking a growing role in certain key segments.
Réseau de transport d’électricité is planning a long-term modernisation of its infrastructure. A national public debate will begin on September 4 to address implementation methods, challenges and conditions.

Log in to read this article

You'll also have access to a selection of our best content.

or

Go unlimited with our annual offer: $99 for the 1styear year, then $ 199/year.