The Inflation Reduction Act (IRA) has turned out to be a big accelerator for capital deployment in the U.S. with its generous tax credits. However, the intention by the U.S. to lead the world on clean energy investment and supply chain has also spurred an intense debate about the spillover effects of the IRA on climate policies and investment outside the U.S. We will explore both positive and negative spillover effects of the IRA and explore opportunities and challenges for the rest of the world.