Strategies For Supporting the Climate and The Economy

Two years ago, Congress enacted the Inflation Reduction Act to rejuvenate the U.S. economy and combat climate change. The legislation's ultimate goal is to transition the nation from fossil fuels to renewable energy by committing $400 billion for investment and tax cuts.

While we're still in the early days, indications are that the IRA is making a significant impact so far. A 2023 report by investment banking firm Goldman Sachs predicts that the IRA will stimulate roughly $3 trillion in investment in renewable energy technology. And nine research teams found that the IRA will cut U.S. carbon emissions between 43% and 48% by 2035.

However, some politicians — often beholden to donors connected to the industries clinging to focusing only on high-carbon fossil fuel technologies — have made overturning the law a centerpiece of their re-election efforts, arguing that it is too costly for the average American. The stakes are sky-high in an election year when a shake-up in leadership could reverse all the progress we've seen thus far.

So, how do we protect the IRA and ensure its continued success? Here are some suggestions.

Highlight the Wins

Americans need to know where and how the IRA is succeeding. Green companies, politicians who support clean energy, and the Biden administration must showcase how the bill is making a positive impact on the environment.

As a communications professional who has worked in sustainability and the environment for over two decades, I can tell you that the public needs to know that this is one of the most significant climate bills ever passed — but I don't want to simply tell you so. I want every company benefiting from the IRA — and there are a lot — to show us specific examples of the IRA making a measurable difference.

It's often said that the best defense is offense. Once you build it, you need to announce it, celebrate it, and make sure people know this project was a direct result of the IRA.

For example, last year, the Ford Motor Company announced an investment of $3.5 billion to build a lithium iron phosphate (LFP) electric vehicle battery plant in Marshall, Michigan. And Nikola, which manufactures heavy-duty commercial battery EVs, said they expect the IRA's incentives to lower the cost of hydrogen, dispensing infrastructure, and trucks for their company and its customers.

Ramp up Clean Energy Transmission

Right now, the U.S. energy grid is like driving from coast to coast on unpaved country roads rather than the high-tech modern Federal Highway system. Just as the Federal-Aid Highway Act of 1956 makes it possible for Americans to cross the U.S. from coast to coast comfortably, the Inflation Reduction Act has the potential to bring the U.S. grid into the 21st century. The federal highway system wasn't completed overnight, and we can expect the needed transmission efforts to take time, even decades. But more needs to be done.

We can only enjoy the fruits of clean energy if we develop the infrastructure to move electricity from where it is generated to where it is consumed, whether that is solar, wind, or hydrogen power. According to the NRDC, the United States must build about 564 GW of renewable electricity and storage by 2035 to meet the IRA's potential. That's a lot of high-voltage lines.

Read more: Federal Solar Tax Credit Guide

How do we get there? We must encourage states to facilitate clean energy transmission by offering tax incentives, grants, and economic opportunities. This is not only sustainable but also financially sound.

Make the Permitting Process Faster

Permitting has become a pain point for many clean energy companies. The current federal environmental review process is considered by many to be a relic, resulting in wildly expensive and often needless setbacks in the construction of renewable energy and essential infrastructure. We can't shift to a more sustainable 21st-century energy system quickly if the approval process is stuck in the 20th century.

The solution is to reform the permitting process. Various members of Congress have introduced bipartisan bills to streamline the system. These efforts must be prioritized, and election-year paralysis should not slow down the process.

Vote Green

With all the talk about voting red or blue, we sometimes overlook another equally important shade in the spectrum — green. And I am not talking about the Green Party. I'm talking about casting your ballot in November for Democrats and Republicans who actively support smart and effective clean energy policies.

Clean energy isn't just a Democrat issue. Many of the communities that benefit from IRA projects are firmly in Republican districts. The Center for American Progress reports that since the passage of the Inflation Reduction Act, more than 211,000 jobs have been created across 45 states and Puerto Rico, 120,573—57%—of which were announced in Republican-represented districts.

Thankfully, clean energy is a bipartisan issue among Americans. According to a 2023 Pew Research Poll, 67% of U.S. adults prioritize the development of alternative energy sources over increasing the production of fossil fuel energy sources, and our elected officials know this.

Read more: The Pros and Cons Of Solar Energy

Americans often express the feeling of powerlessness to affect climate change. I would argue that your ultimate power rests in the voting booth this November. Know your candidates and where they stand in progressing toward a carbon-neutral future. Many local chapters of the Sierra Club grade legislators on their voting records for key environmental issues.

Stakeholders across industries and political parties have a chance to support the work of recent legislation aimed at climate change and improving the economy. Find your paths to support the planet — there is no planet B.