In 2009, the US Congress passed the American Rescue and Recovery Act (ARRA) in response to the Great Recession. It contained $90 billion for clean energy measures.
Today, clean energy measures in a series of bills passed by the U.S. Congress sum up to more than $1 trillion, say analysts from the Inevitable Policy Response Institute (IPR). The size of clean energy spending has snuck up on all of us, as have the implications.
“The Clean $1 Trillion dwarfs historical precedents”
In three recent bills, Inflation Reduction Act (IRA), Infrastructure and Investment Jobs Act (IIJA) and the CHIPS & Science Act, contain funding for various aspects of clean energy measures. The funding is both urgent – must be spent quickly – and persistent, lasting 20 years in some cases. Together, this is an enduring policy initiative.
“With most funding starting in January 2023, IRA spending will incentivise a furious pace for business and investors”
And as the authors point out, there may be some amazing consequences. $495 million of that first $90 billion was loaned to Tesla in its early days. The loan was repaid in full and today Tesla is a leading electric car maker, and valued at $640B. The Clean $1 Trillion is at the scale that it could sponsor 10 Teslas, creating entirely new industries and transforming the private sector of the US economy.
To learn more go to IPR or Environmental Finance
