RMI Celebrates Senate Passage of Historic Climate, Clean Energy Bill
Inflation Reduction Act will lower costs, massively scale up clean energy to tackle climate change
Moments ago, the U.S. Senate passed the “Inflation Reduction Act”— the biggest climate and clean energy bill in U.S. history.
According to independent analysis, including from RMI, the legislation will lower energy costs, increase investment in clean energy economic opportunities, slash domestic missions by at least 40%, and stimulate jobs and economic growth.
“This is a historic moment for climate and clean energy progress not only in the United States, but globally. This legislation gives the U.S. a real chance to reach its Paris Agreement target— while lowering costs for American households. It will also usher in a wave of new clean energy growth and investment, and bolstering energy security,” said Jules Kortenhorst, CEO at clean energy think tank RMI (formerly Rocky Mountain Institute).
“The House of Representatives and the President now must rapidly advance this package, and show the world that the United States can tackle climate change in a way that is pragmatic, stimulates the economy, and brings us closer to the reality of a resilient, zero-carbon, prosperous future for everyone.”
RMI analysis shows the bill would cut costs and open up a wave of new clean energy investment:
- Previous RMI analysis found that clean energy tax credits like the ones in this bill could reduce electricity bills nationwide by at least $5 billion a year by 2024.
- Our brand new analysis also shows wind and solar sources are already saving Texan electricity customers over $20 million a day.
- As several RMI models show, the investments proposed in this legislation will fight inflation, since 41 percent of overall inflation is directly attributable to fossil fuel prices and over half of today’s inflation is due to supply-side factors like underinvestment. Read more about the massive economic opportunity that will come from the investments in this bill and stimulate regional economies.
- A more comprehensive overview of the provisions in this bill is available at RMI’s Inflation Reduction Act landing page.
“With passage of this bill, the Senate is turning U.S. climate commitments into real action. The expansive nature of this bill goes beyond cutting emissions, it is set to stimulate almost every sector of our economy— inviting more American-led innovation, increasing revenue and job growth, and delivering vast cost savings by making us less susceptible to volatile energy markets,” said Sarah Ladislaw, Director of RMI’s US Program.
“RMI is hopeful this legislation will advance through the House and be signed by the President— unlocking economic and climate benefits for years to come.”
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Notes to Editors
RMI is an independent nonprofit founded in 1982 that transforms global energy systems through market-driven solutions to align with a 1.5°C future and secure a clean, prosperous, zero-carbon future for all. We work in the world’s most critical geographies and engage businesses, policymakers, communities, and NGOs to identify and scale energy system interventions that will cut greenhouse gas emissions at least 50 percent by 2030. RMI has offices in Basalt and Boulder, Colorado; New York City; Oakland, California; Washington, D.C.; and Beijing.
More information on RMI can be found at www.rmi.org or follow us on Twitter @RockyMtnInst.