How the Deflation Act will help reduce carbon emissions

US carbon emissions peaked at 6 billion metric tons in 2007 before falling to 4.6 billion metric tons in 2020, the lowest level since the mid-1980s. By 2021, however, they started to rise again, increasing by 6% to 4.9%. Although the figure is still lower than in 2019, the effects of climate change are already being felt in the US and around the world. Meanwhile, inflation is hurting Americans, driven in part by higher energy costs.

Congress passed the Inflation Relief Act of 2022 and President Joe Biden signed it into law on August 16, 2022. The law is a big win for consumers and the climate. Let’s see how it helps reduce carbon emissions.

The Deflation Act invests in clean energy to reduce carbon emissions

Currently, China’s dominance in global solar technology production is causing supply and price issues for the solar industry market. The IRA aims to correct the imbalance by significantly boosting US production and manufacturing capacity in four ways:

• Invest nearly $30 billion in tax credits to support the growth of U.S. solar and other renewable energy technologies and production
• Added $500 million for critical mineral processing using the Defense Production Act
• A $10 billion investment to build new facilities for clean energy technologies, including solar power systems
• A total of $22 billion has been invested in the design and manufacture of clean cars

The move will boost the transition to renewable energies and reduce carbon emissions, a major step toward curbing the effects of climate change and meeting President Biden’s goal of a 100% clean electricity grid by 2035.

IRA invests in environmental and climate justice

The transition to a carbon neutral energy sector requires opening up access to renewable energy at all income levels and underserved communities. Clean energy tax credits and home energy rebate programs are making the transition to energy-efficient and renewable energy technologies more affordable for a broader segment of the American population.

The law also addresses the negative impacts of high pollution concentrations and vulnerability to climate change in disadvantaged communities. The law’s funnels provide funds to convert port infrastructure to zero-emission technologies, which will reduce carbon emissions and improve public health.

The IRA invests in rural communities, forest landowners and the agricultural industry

The agriculture industry contributed 11.2% of greenhouse gas emissions in 2020, but the industry is already affected by drought and severe weather events. IRA promotes the transition to climate-smart agriculture technologies. It also invests in forested areas through grants for reforestation projects, urban tree planting and fire-resistant forestry practices. These measures reduce greenhouse gas emissions and improve the resilience of rural communities.

Residential solar power helps reduce carbon emissions

The Deinflation Act does three things that make us very happy at Unbound Solar: it takes measures to reduce carbon emissions, makes solar and other renewable energies more affordable and accessible to a large part of the population, and increases the country’s energy security. When you work with us, you get a partner for life. Whether you want a complete installation or a do-it-yourself project, you’ve got our support. Take advantage of our sale on premium solar systems, mostly sourced in the USA, to save even more on your solar switch.