US bill to fight climate change will encourage action from other major emitters: Experts

NEW DELHI: The US Senate passing a major legislation that commits $369 billion to clean energy transition will help put the country's economy on track to cut emissions by 40 per cent or more and enable President Joe Biden to encourage action from other major emitters, experts have said.

The Bill could create nine million good jobs in the US over the next decade, they said.

The Inflation Reduction Act, passed by the US Senate on Sunday, will likely be voted on in the House this week, where Democrats have a strong majority. Thereafter, it will be signed into a law by President Biden.

Manish Bapna, president and CEO of Natural Resources Defense Council, said this is the most significant action the US has taken to combat climate change.

"It will benefit the people of all 50 states – their health, their wallets, their homes and their future. And it will help the US deliver on its undeniable responsibility to the rest of the world to do its part to address this global crisis," he said.

Brian O'Callaghan, lead researcher and project manager of the Oxford University Economic Recovery Project, said: "This bill is seemingly the largest investment in national climate action ever. It takes a broadly market-friendly approach, focused on accelerating demand for key products necessary for the transition – this should accelerate technological progress and create an incentive for even more private investment. Technology costs coming down in the US should lead to lower costs globally too."

"While major gaps continue, this Bill boosts US climate credibility on the world stage. It provides a new opening to encourage partner nations, especially advanced economies, to accelerate their own climate-friendly policies," he said.

Heather Zichal, CEO of American Clean Power, said this puts America on a path to creating 5,50,000 new clean energy jobs while reducing economy-wide emissions 40 per cent by 2030.

"This is a generational opportunity for clean energy after years of uncertainty and delay," Zichal added.

However, the new figure still falls short of the 50-52 per cent emissions reduction target the US pledged in 2021, but more action by Biden's executive branch and business and local leaders can help close that gap.