Billions of dollars have poured into the energy sector to spur investment and production of technology to fight climate change through the passing of the Inflation Reduction Act (IRA) 18 months ago. Experts weigh in on the successes so far and any challenges and obstacles that have arisen.
The US Inflation Reduction Act (IRA) promises to unleash vast amounts of funding for companies to deploy clean energy, including wind and solar power, carbon capture and storage, hydrogen and other technologies in an unprecedented effort to decarbonize the American economy. How has this ambitious legislation changed the U.S. energy system? Will permitting and regulatory delays derail the IRA? What will be the impact of lingering high interest rates? Who are the biggest winners so far? Where has the legislation fallen short of its promises? How durable is the IRA to potential electoral outcomes in 2024?
We continue to see a tale of two carbon markets―compliance markets continue to expand while the voluntary markets are mired in transparency and integrity issues. Failure to progress on Paris Agreement Article 6, international carbon market negotiations, at COP28 has pushed the need to bolster market clarity back to stakeholder initiatives and governments. While voluntary markets remain uncertain, compliance carbon markets continue to expand, with large emitting and fast-growing countries laying groundwork for their implementation. What will be the resulting levels of ambition and how much will these markets interact? Will these markets increasingly incorporate project-based reduction efforts ―the hallmark of the VCM―into their designs? What are the synergies, challenges and opportunities ahead for integrating compliance market dynamics with voluntary market dynamics and fostering a more cohesive and effective approach to carbon mitigation?
Retrofitting end-use assets for hydrogen offers several benefits, both environmental and economic, as part of efforts to transition toward a low-carbon economy. In addition to requiring advancements in technologies, it is also driving investment in the hydrogen value chain. What policies provide incentives for retrofitting? What is the scope of assets that can be retrofitted to hit net-zero targets?