One year later: Federal climate investments are driving the clean energy transformation

OPINION:

Back in August 2022, the Business Council for Sustainable Energy (BCSE) released a powerful statement: With the passage of the Inflation Reduction Act, “clean energy enters a new era.”

Now with over a year of hindsight, I can say confidently that we were correct. The Inflation Reduction Act (IRA) has changed the clean energy landscape faster than many of us could have expected, creating the market signals and incentives for the clean energy transition to become hard-wired into the U.S. economy.

Upon its passage in 2022, the IRA opened up $369 billion in funding for clean energy and energy efficiency initiatives including $270 billion in tax credits. This funding includes key investments to spur the clean energy economy, including energy efficiency and clean energy incentives, electric vehicle tax credits, establishment of the Greenhouse Gas Reduction Fund, and funding for environmental justice. Plus, the IRA proved even more impactful by building upon the clean energy and energy efficiency provisions previously passed in the 2022 CHIPS and Science Act and the bipartisan Infrastructure Investment and Jobs Act (IIJA) of 2021.

These funds aimed to boost the development of clean energy businesses, industries, and projects nationwide. The success of this endeavor in just one year has been astounding. Since August 2022, more than 220 U.S. clean energy projects have been announced, spurring the creation of more than 78,000 jobs. Together, the IRA and IIJA are expected to save consumers between $27 billion and $38 billion on their electricity bills from 2022-2030. Ultimately, research indicates that the IRA could lower U.S. emissions by as much as 48% by 2035.

Nevertheless, the work is not over yet. Enacting common sense federal permitting and siting reforms is crucial to speed up the pace of deployment of clean energy technologies. These reforms are imperative to achieving U.S. greenhouse gas emission reduction targets and to maintaining secure and resilient energy infrastructure.

An effective federal permitting reform package should include provisions related to providing predictable and efficient review processes and supporting the modernization and build of new electric transmission and other energy infrastructure, as well as policies to support energy system optimization with digital technologies. BCSE looks forward to continuing to work with policymakers, stakeholders, and partners to enact further market-based policies that drive forward the clean energy transition.

It is remarkable to reflect on how much clean energy policy and deployment has accelerated in just one year. The clean energy transition is rolling forward with increased momentum! As we continue to build strong public-private partnerships, enact constructive federal policy, and ground our work in sound science, I am excited to see this clean energy future come to fruition.

• Lisa Jacobson is the President of the Business Council for Sustainable Energy, a 65-member trade association representing the energy efficiency, natural gas, and renewable energy industries. She is a member of the United States Trade Representative’s Trade and Environment Policy Advisory Committee, the Energy Efficiency Global Alliance Steering Committee, and the Gas Technology Institute’s Public Interest Advisory Committee.