Complexity of Inflation Reduction Act
By Troy StangaroneThe Inflation Reduction Act (IRA) has complicated U.S.-Korea relations and spurred accusations by one senior Korean official that the new electric vehicle (EV) requirements are a “betrayal.” However, the IRA is also a complex piece of legislation designed significantly to reduce U.S. greenhouse gas emissions and reshape supply chains for critical minerals. The IRA is the most important piece of climate change legislation ever passed by the U.S. Congress. Its climate provisions are expected to reduce U.S. greenhouse gas emissions between 37 percent and 41 percent below 2005 levels by 2030. As the world's second-largest emitter of greenhouse gases, the act is an important step by the United States to meeting its contributions to helping the world reduce emissions enough by 2050 to prevent global average temperatures from rising more than 1.5 degrees Celsius ― the point beyond which scientists believe the world will reach a series of “tipping points” that would begin reshaping the environment.Ideally, the IRA would have blended the United States
