High inflation in the U.S. could make things difficult for the clean energy sector, but the passage of the Inflation Reduction Act could more than make up for those impacts, experts say.
In the U.S., consumer prices in July were up 8.5% compared to the previous year, albeit slightly lower than June’s 9.1% year-over-year increase. Late last week, the House of Representatives passed the Inflation Reduction Act, which authorizes $369 billion in funding for climate change-related and clean energy initiatives. The legislation includes a wide range of incentives and tax credits for clean energy, electric vehicles, nuclear power, and clean hydrogen, among other things, and is projected to decrease U.S. carbon emissions by 40% by the end of the decade.
Clean energy projects that began to get underway as inflation ramped up face two…