The Inflation Control Act is a very big issue for the United States. This is the largest climate law in the history of the country. That’s a lot of money, about $370 billion in all sorts of tax incentives for American consumers and businesses. We’ve covered it from several different angles, and we’ll continue to explore the package in the coming weeks.
But what does that mean for the rest of the world? That’s what I want to talk to you about today.
There is one thing the law does and one it doesn’t.
It puts the United States on track to greatly reduce its own pollution, which is good for all life on earth.
The United States is the largest polluter of greenhouse gases in history. This law alone will not meet the Biden administration’s ambitious pledge under the Paris Agreement to halve domestic greenhouse gas emissions by 2030 compared to his 2005 levels. . But it goes a long way. This could put him on track to reduce emissions by about 40% within a decade, according to independent analysts.
This could make renewable energy cheaper globally.
This law is intended to encourage the manufacturing of renewable energy technologies in the United States by providing a huge number of subsidies. With the US being the world’s largest economy, global prices could fall, making it easier for many emerging economies and low-income countries to adopt renewable energy rather than build coal-fired power plants.
It keeps the US in the game in the run-up to international climate negotiations.
President Trump withdrew the United States from the Paris Agreement. President Biden has made bold promises to revive the country and cut US emissions. But he had no way of getting there until this law was passed.
Fiji Prime Minister Frank Bainimarama, a loyal ally of the United States, said: admired the law as “the most important show of solidarity for the Pacific since rejoining the Paris Agreement”.
“While we seek even greater ambitions from the world’s largest economy and historic emitter, Fiji welcomes this victory for the planet,” he wrote on Twitter.
Lawrence Tubiana, France’s former chief climate negotiator, said it was vital to US reputation Interview at Le MondeShe said it was “hard to see” how the US could have maintained its credibility if the law had not been passed.
It shows that democracy works, albeit cumbersome.
The passage of this bill reinforces the arguments that President Biden has tried to make to the world. Democracy is better than authoritarianism in providing what citizens need, even in a crisis as big and complex as global warming.
I couldn’t help but notice the diplomatic trolls from China, America’s biggest global rival and currently the world’s biggest polluter. “Good to hear” China’s foreign ministry on Twitter this week. “But the question is whether the United States can deliver.”
That bargain came after US Ambassador to China Nicholas Burns. called Beijing “Rethinking Suspension of Climate Cooperation with the United States”
After House Speaker Nancy Pelosi visited Taiwan, China withdrew from bilateral climate talks with the United States.
China has promised to spend a lot of money moving away from fossil fuels, but not as much as it has already spent.
In 2021, China will invest about $266 billion in what Bloomberg NEF described. “Energy transition” Renewable energy alone includes $185 billion. By comparison, the US invested her $114 billion in the same item.
It’s hard to say if or when the US will be able to catch up. And designed to attract more private investment, the total investment in things like electrifying transport and developing batteries for energy storage will undoubtedly be well over $369 billion.
There is one important thing that is not protected by law. It does not include funds to help poor countries deal with the effects of global warming.
There are two types of money that many low-income countries claim to be obligated to pay.
First, the Paris Agreement included a commitment for rich countries to share $100 billion a year by 2020. Organization for Economic Co-operation and Development.
Meanwhile, the Biden administration had pledged $11.4 billion annually in climate funding through 2024. The latest appropriations bill passed by Congress allocated just $1 billion. With midterm elections in early November, Congress may not be able to approve the next appropriations bill before global climate change talks begin in Egypt in mid-November.
The richest country in the world could emerge empty-handed.
“What we hear is, ‘This is not enough,'” said Nisha Krishnan of the World Resources Institute. “The United States will struggle financially.”
Second, there is growing demand for the wealthy developed nations responsible for their past emissions to pay for the losses suffered by the world’s poorest nations. The United States has not consented to the creation of such a fund. It is highly likely that it will become a flashpoint in the next climate negotiations.
Important news from The Times
Dry West: Arizona and Nevada face new limits on how much water they can pump from the Colorado River, threatening deeper cuts.
China in extreme heat: A two-month heatwave forced some factories to close, driving up food prices and reducing water and energy supplies.
Dry Europe: The scorching summer has caused water levels in Europe’s rivers and dams to become extremely low, straining energy supplies and disrupting trade.
Wildfires in North Africa: Fast-moving fires have killed at least 37 people in Algeria.
Defenders of mining rights: Harriet Hedgeman, who defeated Rep. Liz Cheney in the primary, made a career out of fighting environmental regulations.
Fishing for Trash and Treasure: Pandemic boredom has led many to try magnet fishing. Guns and bottle caps have been found, but the real reward is a clean river.
out of the times
Before You Go: Fever and Mental Health
Tens of millions of people around the world have experienced one heat wave after another this summer, what can feel like a constant stream of wet days and scorching temperatures. Hot weather can affect your mood and increase your chances of more serious mental health problems.
thank you for reading. I will be back on Tuesday.
Manuela Andreoni, Claire O’Neill and Douglas Alteen contributed to Climate Forward.
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