The US is making its biggest climate investment ever, but the climate crisis could be much costlier

Build back greener… Last week President Biden signed a historic climate and social spending bill into law (confusingly dubbed: “the Inflation Reduction Act”). The $433B package is expected to help the US curb emissions by 40% by 2030, closer in line with the 50% goal Biden had set in the Paris Agreement.

• Big deal: The landmark legislation includes nearly $400B in climate spending — less than Biden’s original agenda, but still the largest climate investment in US history. Included: $60B for clean sources and storage (think: wind turbines, EV factories) and tax credits to help consumers lower their emissions (think: home solar panels, used EVs).
• Bigger problem: Despite the monumental law, scientists warn the world’s still "way off track" in capping rising temperatures, and the current energy crisis is making it harder for our gas-reliant globe to focus on green alternatives.

From countries to companies… governments and corporations have made ambitious pledges to curb greenhouse-gas levels, which hit a record in 2021. G20 countries (notably the US, China, Germany, and India) account for more than 80% of the world's economic output and 80% of global emissions. Only 6% of the G20's $14T in postpandemic stimulus spending went toward projects to lower emissions.

• Companies aren’t doing so great either: 700+ of the largest 2K public companies have made net-zero commitments, and two-thirds of S&P 500 companies have set targets for emission reductions — but many are struggling to deliver.