“Our international partners have nothing to fear from the IRA, and a whole lot to gain,” argue the three officials in a guest essay
America enacted the Inflation Reduction Act . It is the most aggressive action taken in our history to build a clean-energy economy, to combat the climate crisis and to increase our energy security. This legislation means that for the first time, America is on the path to credibly meet our 2030 climate goals, including reducing domestic greenhouse-gas emissions by 50-52% below 2005 levels.
Those savings mean more clean-energy deployment, which in turn means greater cost declines. And as American manufacturers produce clean energy at scale, America will drive down global costs as well.CHIPS We have already seen how public investments can promote production at scale for nascent technologies, as shown by wind and solar. Decades ago, America and other governments around the world invested in these sectors, advancing the technology and encouraging production. That led prices to fall by 60% and subsequently unlocked deployment around the globe. Solar has become the cheapest form of new energy installation.
Of course, unlocking these potential global cost savings and emissions reductions will require not only sustaining but increasing international collaboration—both bilaterally and multilaterally. For example, last year America and theannounced their commitment to negotiate the world’s first carbon-based sectoral arrangement on steel and aluminium trade by 2024.
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