The Inflation Reduction Act of 2022 (IRA) provided the Federal Highway Administration and the GSA with funding to select materials and products with substantially lower levels of embodied greenhouse gas emissions, as determined by the EPA. The EPA issued a summary of the IRA programs to fight climate change.

Further, the IRA is being seen as pro-growth climate policy for the following reasons: (i) mitigating greenhouse gases, (ii) adapting to climate change, (iii) reducing local pollution, (iv) spurring innovation and spillovers, and (v) reducing economic vulnerability to international price volatility. While many jurisdictions have seen and developed these benefits for years, the Biden administration has embraced this in a way that previous administrations have not. The US Department of the Treasury has published a post highlighting the pro-growth climate policy of the IRA.

States and regions have adopted a wide range of policies aimed at reducing greenhouse gas emissions, developing clean energy resources, and promoting more energy-efficient vehicles, buildings, and appliances, among others. Twenty-three states and the District of Columbia have established greenhouse gas emissions targets to be met across various timelines.

Other examples of efforts that have been undertaken in the US are as follows:

• The EISA aims to (i) move the US toward greater energy independence and security, (ii) increase the production of clean renewable fuels, (iii) increase the efficiency of products, buildings and vehicles, and (iv) promote research on and deploy greenhouse gas capture and storage options. For further details, see the previous section on “Energy performance certificates and minimum energy standards.”
• The EISA established the Net-Zero Energy Commercial Building Initiative, which aims to achieve marketable net-zero energy buildings by 2025 through an array of public and private partnerships to advance the development and adoption of high-performance buildings. The act also established specific goals of achieving net-zero energy use in (i) all new commercial buildings constructed by 2030, (ii) 50% of the commercial building stock by 2040, and (iii) all commercial buildings by 2050.

The Building America program described under the section on “Incentives for green retrofit” is another program adopted by the US Department of Energy that aims to reduce energy use in new and existing homes.

Additionally, the Greenhouse Gas Reporting Program requires reporting of greenhouse gas data and other relevant information from large greenhouse gas emission sources, fuel and industrial gas suppliers, and CO2 injection sites in the US. Approximately 8,000 facilities are required to report their emissions annually, and the reported data is made available to the public in October of each year.

President Biden's Executive Order 14057 established the Federal Sustainability Plan, with an ambitious plan to achieve a net-zero emissions buildings goal by 2045. Among other things, this plan will (i) implement the Federal Building Performance Standards to drive emission reductions in existing buildings, (ii) achieve higher levels of sustainability in owned and leased buildings, (iii) leverage private sector investment, and (iv) increase energy and water efficiency.