If Congress and the White House change hands, many are assuming there will be changes to the Inflation Reduction Act (IRA). While amendments are possible, a lot of money is already out the door, and business is booming for the clean energy transition.

From campaign trail promises to final enacted legislation, those of us in the energy community have been thrilled for the boost that the Inflation Reduction Act (IRA) has provided American business. As we look back on and celebrate the one-year anniversary of this landmark legislation, there are many milestones to acknowledge and many opportunities on the horizon. 

The accelerated adoption of electric vehicles (EVs) has changed the automotive industry forever. Tax credits and subsidies have lowered the initial cost barrier for many. According to the Edison Electric Institute, the number of EVs on U.S. roads is projected to reach 26 million in 2030, up from 19 million in 2018. All eyes now turn to whether or not domestic infrastructure to charge all those EVs can keep pace. This rise in EV popularity can be attributed to several factors, including a greater awareness of the environmental impact of traditional gasoline-powered vehicles and advances in EV technology. The decreasing cost of EV batteries and the availability of government incentives and tax credits also have contributed to this increased adoption.

Unprecedented climate legislation is opening a vast array of opportunities for those in the cleantech space. The $369 billion dollars in federal funding is proving to be a gamechanger by delivering critical investments to climate tech developers and manufacturers. Companies are taking advantage of tax incentives and grants for solar, wind, and other renewable energy projects. Developments are moving even faster in e-mobility, where Americans now can now tap into a $7,500 credit to buy EVs. The law also requires that some manufacturing and assembly of EVs happens right here at home in the U.S. And as an important first, this law will dedicate between around $60 billion to environmental and climate justice efforts.

EPA Scopes have created a framework for a path forward on reducing emissions, and investors are following the lead. Investment areas are concentrated, for now, on Scopes 1 and 2. These scopes cover greenhouse gases (ghgs) from sources owned or controlled by a federal agency to ghgs resulting from generation of electricity, heat or steam purchased by a federal agency. Scope 3 is tackling ghgs from sources not owned or directly controlled by a federal agency but related to activities. This means transportation, business air travel, commuting, contracted solid waste and wastewater are covered.

Next week world leaders, media and advocacy groups will gather in Sharm el-Sheikh, Egypt, for COP27, which will focus on several different topics covering the global south, as well as the rest of the world. The conference will cover themes from finance to agriculture, gender, biodiversity, and conclude with civil society. In addition to these themes, we will be tracking other topics.