The US passed its largest ever climate-focused spending package to accelerate its net zero transition, putting the US on the path to halving its greenhouse gas emissions from 2005 levels by 2030.
This follows similar large spending initiatives by the European Union and China on clean energy and related technologies. This is particularly important as, without increased government action, the world is heading towards 2.4°C or more of warming by the end of the century on its current trajectory.
Overall, renewable energy capacity continues to expand rapidly worldwide, and we expect the new US climate spending package to accelerate this further.
We maintain our view that global efforts to strengthen climate ambition and pursue sustainable, climate-resilient development paths will continue to drive profound structural changes to the global economy.
The US Inflation Reduction Act and its massive package of climate and clean-energy related incentives are the latest indication that the longer-term global policy trajectory is clearly heading inexorably towards a low-carbon economy.
Our interactive publication breaks down the details and global impact of climate initiatives, and the new opportunities emerging in the global transition towards a carbon neutral economy.