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As President Biden prepares to leave office, it’s a fitting moment to reflect on the legacy of his administration’s climate policies and their impact on the fight against global warming.

There is little doubt that one of the most discussed aspects of his presidency in future years will be that surrounding his administration’s landmark climate law, the Inflation Reduction Act (IRA). The act alone brought in more than $370 billion in direct support for clean technologies. This helped establish the USA as a leading manufacturer of low-carbon energy products, all while bolstering the credibility of global climate negotiations, especially as it pushed the US to rejoin the Paris Agreement. Looking back, here are some of the largest impacts of the Biden administration’s IRA bill.

The Flow of Green Investment Money

Under the IRA, the White House estimates that $337 billion in investments for large solar, wind and storage projects will come through to historically Republican states as part of the IRA and $183 billion to Democrat lead states. Republican-run states see the largest impacts due to many of them being states with large energy and manufacturing sectors and a proven capability to produce solar and wind energy.

The Impact of “Green” Collar Jobs

In less than six months of the IRA passing, American companies announced more than 100,000 energy jobs.  This estimate, which comes from the nonprofit Climate Power, also estimates that even more jobs are estimated to become available in US cleantech factories, which have either been planned or built under Biden’s administration.

Increase in EV Sales

The IRA provided tax credits for Electric Vehicles (EVs), which made ownership for US consumers cheaper. This impact cannot be understated, as there are an estimated 289 million vehicles in use within the US, which makes up close to 18% of the worldwide total. This incentive for consumers to purchase EVs in the US has seen the 10 biggest EV makers in the US post rapid sales growth compared to 2023, up anywhere from 56% at Hyundai-Kia to 86% at Ford.

Declining Emissions

US Emissions in 2023 were 17.5% below 2005 levels, according to US research firm Rhodium Group. And while the IRA ramped up decarbonisation, it is still unlikely to do enough to meet Biden’s goal of being in line with the Paris Agreement. The agreement aims to cut emissions to 50% below 2005 levels by 2030. However, the IRA provides a good first step for the US to meet this goal.

We see the IRA as a positive step toward achieving global climate goals while recognising that more can be done. As climate change becomes more apparent and widely discussed, we believe that rapid changes in regulation and global consensus will arise. That is why we are constantly monitoring new developments in this space to help our clients achieve their climate investing goals.