Inflation Reduction Act - Energy Security and Climate Change Investment: Takeaways Around Mobility Innovation
- Jiajia Zhou
The signing of the Inflation Reduction Act into the law last week is monumental with the largest climate investment ($369 billion) in the U.S. history.
The bill is expected to reduce greenhouse gas (GHG) emissions by roughly 40% below 2005 levels by 2030 (compared to 30% under pre-IRA policy and 50% under Biden administration’s Paris commitment).
The 4-page summary of the $369 billion investment and a number of reports [1][2][3] have done thorough analysis on the bill. What caught my attention is the aspects around mobility innovation. Below I have compiled a list of sections from the Inflation Reduction Act that are relevant to mobility and hydrogen innovation (with footnotes in case you want to dig in further) and I have summarized the impact each section will have on the mobility ecosystem - hope you find it informative and fun to read!
No doubt it’s a brisk tailwind for the cleantech venture ecosystem. We’re proud to be a part of it not only with our investment in clean mobility tech, but also with our commitment to bring cleantech innovation to our strategic partners.
Shout out to the amazing mobility tech / clean tech entrepreneurs out there!
We’d love to learn about you and your technologies – please reach out 😉
Special thanks to our summer intern Nik Matovich on the research support.
[1] Rhodium Group - A Turning Point for US Climate Progress: Assessing the Climate and Clean Energy Provisions in the Inflation Reduction Act [2] Bipartisan Policy Center - Inflation Reduction Act (IRA) Summary: Energy and Climate Provisions [3] Harvard Environmental & Energy Law Program - The Inflation Reduction Act’s Implications for Biden’s Climate and Environmental Justice Priorities [4] Sec. 13401. Clean Vehicle Credit (Sec. 30D) [5] Sec. 13402. Credit For Previously-Owned Clean Vehicles (Sec. 25E) [6] Sec. 13403. Qualified Commercial Clean Vehicles (Sec. 45W) [7] Sec. 13404. Alternative Fuel Vehicle Refueling Property Credit (Sec. 30C) [8] Sec. 60101. Clean Heavy-Duty Vehicles (Sec. 132 in The Clean Air Act) [9] Sec. 60102. Grants to Reduce Air Pollution at Ports [10] Sec. 70002. USPS Clean Fleets [11] Sec. 50142. Advanced Technology Vehicle Manufacturing (loan) [12] Sec. 50143. Domestic Manufacturing Conversion Grants [13] Sec. 13501. Extension Of The Advanced Energy Project Credit (Sec. 48C) [14] Sec. 13502. Advanced Manufacturing Production Credit (Sec. 45X) [15] Sec. 13204. Clean Hydrogen (Sec. 45V. Credit For Production Of Clean Hydrogen) [16] Sec. 13102. Extension And Modification Of Energy Credit (Section 48 Energy credit)
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