Impact investing got a shot in the arm this quarter with the passage of the Inflation Reduction Act on August 16. In addition to tax and health care provisions, the legislation provides roughly $400 billion for increasing energy security and reducing greenhouse gas emissions that are contributing to climate change. Much of the funding targets economic sectors including renewable energy and grid energy storage, nuclear power, electric vehicle incentives, home energy efficiency and advanced manufacturing. Coupled with additional federal and state measures in the works, the bill will allow the US to fulfil its Paris Agreement pledge to reduce greenhouse gas emissions by 50% by the year 2030.
