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The Clean-Energy Race Is On

While no legislation is perfect, the US Inflation Reduction Act of 2022 will be a game changer for the transition to clean-energy sources, both in America and around the world. By doubling down on forward-looking industrial policy, the US is suddenly poised to give Europe, China, and others a run for their money.

NEW YORK – The United States has entered the clean-energy race in a big way with the Inflation Reduction Act (IRA) of 2022. Not only will the law subsidize US renewable-energy producers and consumers to the tune of $369 billion over ten years; it also authorizes the Department of Energy (DOE) to lend up to $250 billion to US companies that are investing in the clean-energy transition. Between the IRA and the recent $52 billion package to boost US semiconductor production, it is clear that industrial policy is back in vogue in Washington, DC.