The Inflation Reduction Act (IRA), hammered out through negotiations between Senate Majority Leader Chuck Schumer (D–N.Y.) and Sen. Joe Manchin (D–W.Va.) and unveiled last week, has been hailed as the "most important climate action in U.S. history." Why? Because it "reduces carbon emissions by roughly 40 percent by 2030" below the level emitted by the U.S. in 2005, according to a press release from Senate Democrats.
The consulting firm Rhodium Group, after cranking the Act's provisions through its econometric model, concurred: "Our preliminary estimate is that the IRA can cut US net greenhouse gas emissions down to 31% to 44% below 2005 levels in 2030…compared to 24% to 35% under current policy." The policy shop Energy Innovation's analysis agreed: "We find that the IRA is the most significant federal climate and clean energy legislation in U.S. history, and its provisions could cut greenhouse gas (GHG) emissions 37-41 percent below 2005 levels."
