Senate Passage of Inflation Reduction Act Marks a Monumental Moment for U.S. Climate Action
Ceres Director of Federal Policy Zach Friedman issued the following statement after the U.S. Senate approved the Inflation Reduction Act of 2022, a groundbreaking package highlighted by about $370 billion in climate, energy, and environmental justice investments:
“The U.S. Senate has put the nation on the cusp of achieving the most ambitious federal climate, clean energy, and environmental justice investments in U.S. history. This package will bring enormous economic benefits across the country, all while addressing core concerns like inflation, energy security, and the price volatility facing companies, families, and communities alike.
“American businesses and investors have championed the clean energy measures in this deal for more than a year because they recognize that these investments are critical to building the innovative industries, domestic supply chains, and advanced manufacturing capabilities our economy needs to compete now and in the coming decades. They will also help lower energy costs, reduce the climate-related risks that threaten the economy, and create millions of quality jobs in rural, disadvantaged, and energy communities.
“We are thankful to the senators and staff members who undertook many months of difficult negotiations to craft—and ultimately pass—these monumental investments. We now urge the House to promptly approve the Inflation Reduction Act and send it to President Biden’s desk to unlock the enormous promise of the U.S. clean energy economy.”
Nearly 2,900 companies with more than $4.6 trillion in annual revenue and more than 400 million global employees have participated in corporate America’s year-long push for federal legislation to invest in clean energy, clean transportation, advanced manufacturing, domestic supply chains, climate resilience, environmental justice, and resilient agriculture. These efforts have included:
- A letter signed last December by 437 companies, investors, trade groups, and employers calling on the U.S. Senate to pass a package of climate investments that were previously passed by the House of Representatives;
- February meetings with dozens of senior leaders from influential companies and key Congressional offices to urge swift passage of a federal reconciliation bill that includes the historic climate, clean energy, and environmental justice investments;
- Participation by Siemens USA CEO Barbara Humpton in a March Punchbowl News event highlighting the substantial corporate advocacy for robust climate policy;
- A letter from nearly 50 large companies, each generating more than $200 million in annual revenue, calling for the climate package to advance as Congress returned to session in April;
- Meetings between more than 100 major companies and lawmakers of both parties in May, as part of LEAD on Climate 2022, pushing for Congressional climate action;
- A June letter from more than 1,000 companies of all sizes, representing every state in the country and industry in the economy, pressing the economic case for these investments;
- A letter from seven CEOs at some of the nation’s largest companies, injecting their personal calls for climate provisions in a reconciliation deal at a critical point in the Senate negotiations;
- A business roundtable with President Biden on Aug. 4 focused on the IRA, that featured leaders from Ameren, Carrier, Cummins, General Motors, and Kaiser Permanente;
- Individual statements from many large companies and trade associations in support of these climate provisions over the last year, including a surge of support for the IRA after Sens. Schumer and Manchin announced the deal in late July.
- A letter released days ahead of the Senate vote signed by dozens of large companies, urging approval of the Inflation Reduction Act.
Ceres is a nonprofit organization working with the most influential capital market leaders to solve the world’s greatest sustainability challenges. Through our powerful networks and global collaborations of investors, companies and nonprofits, we drive action and inspire equitable market-based and policy solutions throughout the economy to build a just and sustainable future. For more information, visit ceres.org and follow @CeresNews.