New commentary on the global implications of the IRA
While the Inflation Reduction Act is an unprecedented climate policy in the U.S., it has drawbacks.
Bessie Noll, a senior researcher at EPG, has just published a external page commentary on the recently introduced IRA, which includes nearly $400 billion in funding for clean energy technologies in the U.S. Focused on accelerating emissions reductions and boosting local green industries, the IRA prioritizes a domestic-first green industrial strategy. The commentary argues that this focus on local supply chains could lead to higher costs and strained international relations, jeopardizing global climate goals, compared to a “middle-ground” scenario that balances domestic needs and global cooperation.
The commentary, published in the journal Joule, is co-authored with Professors Bjarne Steffen and Tobias Schmidt.