US Inflation Reduction Act focussing on clean energy investments
ed’s note: is the inflation reduction act a green deal

Ed’s note: Is the Inflation Reduction Act a Green Deal for the US?

It seems like the short answer is yes, and that the US is getting its own Green Deal two years (and a war) after the European Union did.

What has been addressed as the most important climate legislation in the US, has a budget of 369 billion dollars. The budget will be used to promote clean energy, environmental justice and to cut carbon emissions. Much like the 1 trillion euros the EU Commission will invest via the Green Deal. Of that number – because at this level it is not money anymore, it is just a huge number – about half will be used on climate and the environment.

The investment is indeed huge on both sides of the Atlantic, but the similarities do not end there. When it comes to the energy sector specifically, the focus areas are more or less the same.

Energy storage is one of them, which makes sense because it is a sine qua non factor for the stability of the grid and energy abundance both. So manufacturing the best solutions and then integrating them into the (smart) grid is of the utmost importance.

Renewables also make the cut for obvious reasons (clean energy, independence from Russia and other non-EU countries, etc.). Again on both the level of production and integration. But although the EU is showing a slight preference for hydrogen, it seems like the US is focusing more on solar.

Smart and green buildings are also high on both agendas because of the impact they can have on the environment and the residents’ pockets alike.

Have you read?
US Senate passes Inflation Reduction Act to energy industry applause
SEF Weekly: $369bn US clean energy package and energy interconnection

Finally, environmental justice is also an important key point for both Europe’s Green Deal and America’s Inflation Reduction Act. If I am not mistaken, however, the European Just Transition mechanism will focus mostly on correcting injustices within the continent.

On the other hand, the American one will expand to other countries (mainly sub-Saharan Africa).

That said, since both the US and the EU are fighting the good fight for the planet and future generations alike, collaboration with other countries, especially those affected most by the results of climate change, is necessary. To put it mildly.

Now, what does that mean for both the US and the EU? Well, among other things, they show yet another united front on a very important issue and that they take climate change seriously. I’ll be honest, that makes me happy. What about you?

Cheers,

Areti Ntaradimou

Editor, Smart Energy International

Follow me on LinkedIn

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