A year after the IRA, industrial policy has gone global. Now what? – by David L. Goldwyn and Andrea Clabough (Atlantic Council – August 7,2023)

Atlantic Council – Shaping the global future together

The Inflation Reduction Act (IRA) may prove to be one of the most transformative pieces of economic legislation in US history. The vast waves of investment coming to US shores throughout the last year bear out this possibility. One recent analysis estimated that between August 2022 and January 2023, over 100,000 clean energy jobs were created in the United States as a result of almost $90 billion invested in dozens of clean energy projects.

The domestic impacts of the IRA are undeniable. It is less certain what it means for the global energy transition. One year later, much work remains ahead to maximize the potential of the IRA. While US policymakers should consider the IRA’s long-term future and extend many of its provisions past 2032, officials must prioritize opportunities to align with like-minded allies overseas.

The IRA was designed to pair two central goals for the Biden administration: revitalize domestic industry while spurring a systemic transformation of the US economy toward a low-carbon, net-zero pathway.

Undoubtedly, massive investments in key transition technologies within the world’s largest economy have global implications. New analysis suggests the IRA’s domestic provisions will ultimately reduce the cost curves for technologies like clean hydrogen and sustainable aviation fuels throughout the world. However, these global benefits largely occur in the post-2050 timeframe—after the crucial midcentury date by when the world must achieve net-zero emissions.

For the rest of this article: https://www.atlanticcouncil.org/blogs/energysource/a-year-after-the-ira-industrial-policy-has-gone-global/