A little over a year ago, in August 2022, President Biden signed the Inflation Reduction Act (IRA) into law, representing the most extensive government investment in clean energy and climate action ever.
This monumental piece of legislation provides a substantial amount of money without demanding a share of ownership from companies dedicated to reducing carbon emissions, way more than what's available to businesses in other industries. The financial support allows climate startups to bypass the common challenges of raising funds that have been a significant issue for a large part of the ClimateTech industry, which probably is a contributing factor to why ClimateTech startups set a new record in fundraising this past quarter, with a record $7.6B in Q3.
Specifically, the IRA played a crucial role in driving significant progress in various key areas, including the development of green hydrogen, enhancing the supply chains for electric vehicles, capturing carbon directly from the air (DAC capture), and improving the infrastructure of renewable electric grids.
Still, the 725-page bill is a real whopper to read through and determine which sections of the bill benefit which sectors in ClimateTech.
What I hope to do here is decode that for you so you can see who benefits from what more concisely without scrolling through the beast of a text.
Table of Contents
II. More Coming
Layout of the Titles in the Bill
Below is a breakdown of each of the titles in the bill and its impact on ClimateTech:
More Coming
As this is an expansive bill, I will be updating this page regularly as I make it through each section. Stay tuned!
Comments