"In late July, I visited a steel mill in Gallatin, Ky., operated by the company
Nucor. During my visit, I watched as the facility churned out massive rolls of
low-carbon steel destined for use in renewable infrastructure. Nucor’s stock
price has increased nearly five-fold in the last three years, and the day
before I visited the company had announced blockbuster profits citing, in large
part, all the demand created by businesses racing to take advantage of money
flowing from federal spending programs, including and especially the Inflation
Reduction Act (IRA).
Kentucky is far from alone. Across the country, the IRA has spurred hundreds of
billions of dollars in investment in clean technology. Lithium-ion battery
makers are opening factories near auto industry hubs to serve the growing
electric vehicle market. Solar manufacturers are setting up shop in red states
like Georgia. And old-school oil companies are investing in hydrogen. “It's a
transformation of the economy,” says John Podesta, President Joe Biden’s senior
advisor charged with implementing the IRA.
The IRA, which will mark one year since its signing on Aug. 16, is a classic
piece of D.C. lawmaking. It came about in a windy legislative process that
began with a big campaign promise from Biden and ended with backroom
deal-making on Capitol Hill. And it has an odd, misleading name with a funny
acronym, to boot.
But while the law was born in D.C., to understand its impact you need to look
outside the capital as it reshapes industry across the country and the world.
From Miami to Mumbai, Boise to Brussels, wherever I’ve traveled in the last
year, the IRA has been top of mind for policymakers, business leaders, and
civil society. It will not only determine whether the U.S. meets its emissions
reduction goals, but also shape the global economy for decades to come.
“I want to make it clear: the Inflation Reduction Act is the single most
important climate action since the Paris Agreement in 2015,” Fatih Birol, the
executive director of the International Energy Agency, told me in May."
Via Future Crunch
*** Xanni ***
Chief Scientist, Xanadu
Partner, Glass Wings
Manager, Serious Cybernetics