In most major economies of the world, the primary method of incentivizing people to do the jobs that they do is through money. We watch the GDP of our nations rise and fall depending on the day or the month, and we pay close attention to how much is in our account at any given time, considering the peril we’d be in if that money were not to be there.
For public utilities, money is key to whether or not we have paved roads, water that is safe to drink, or lights that turn on when we press the switch. Larger economies also make a big difference to what other economies do, as they show whether or not certain policies or programs work or don’t work. They influence us all, which is why the Inflation Reduction Act’s funding making its way through the federal government in the US is important for all of us, no matter where we are in the world.
The landmark bill was passed in the US to help reduce greenhouse gas emissions, help curb inflation by lowering the budget deficit, invest in domestic energy production while promoting green energy, and lowering prescription drug prices. This bill matters significantly because it shows that one of the largest economies in the world is providing incentives for companies and governments to accelerate the transition toward renewable energy while making everyday life easier for Americans as a whole.
A share of this funding goes directly to the Environmental Protection Agency (EPA), making this money available to state governments, large municipalities, and indigenous people. They are doing this to implement Climate Pollution Reduction Plans, which, state by state, are intended to reduce greenhouse gases and create carbon sinks.
The EPA’s goal is to adopt these comprehensive and ambitious climate plans, which will occur across multiple sectors of the economy. The plans include adopting robust metrics and reporting programs to track emission reductions and other benefits, especially in disadvantaged communities. This development is unprecedented as it’s US history’s greatest climate planning effort. It is expected to have a ripple effect in other countries if the benefits are seen to have long-term effects.
The benefit to individuals and communities as a result of having clean air to breathe, trees that are not at risk of being cut down, and a future to look forward to is incalculable. However, the economic incentives are here now. Not only federal funding but the opportunity that renewable energy presents as prices have decreased over the past decade shows that it makes sense now to adopt a new way of running our modern world.
New technologies continue to be developed to help the environment; this funding will allow these technologies to get off the ground. It will allow the opportunity for farmers and other agricultural organizations to rethink their practices and adopt new, better ways of operating as we move forward. The US is a major driving force behind changes that happen in other countries. Hopefully, as we continue to see the push from citizens demanding better climate policies, we will see similar bills passed in other countries.