Government intervention in markets is mostly to be avoided. But emerging markets and technologies sometimes need a boost. Biden and Congress seem to have delivered this to US corporations in the fight for a more sustainable future.
Goldman Sachs analysis on the impact of the IRA (Inflation Reduction Act passed by Congress in 2022) suggests a "reduction in 2030 US carbon dioxide emissions vs. 2005 levels to a 39% decline vs. 37% previously after updating for greater deployment of renewables and electric vehicles, pace of fossil fuel demand, carbon capture deployment and coal/nuclear plant retirements in consultation with our sector analysts. Our upside scenario implies a 47% reduction."
"We believe the IRA and needed US transmission expansion has the potential to add at least $1.6 trillion over 10 years." a significant contribution to the trillions likely needed for global transition.
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