The US Senate has devised a legislative package that will boost US renewables and clean tech industries, promising to reduce the country’s greenhouse gas emissions by 40% by 2030. The Inflation Reduction Act was finalised at the end of last week in an effort to significantly accelerate global decarbonisation.

The Inflation Reduction Act is intended to cut America’s planet heating emissions by about 40% by 2030, in comparison to 2005 emission levels.

Scientists have said there must be a global effort to avoid catastrophic global warming, which could lead to heatwaves, droughts and floods to be experienced all over the globe. The legislation has been passed by the US Senate and is expected to be approved by the House.

A climate policy expert at the University of California, Santa Barbara, said:

“This is a massive turning point. This bill includes so much, it comprises nearly $370bn in climate and clean energy investments. That’s truly historic. Overall, the IRA is a huge opportunity to tackle the climate crisis.”

Expenditure totalling $369bn has been reported for the implementation of climate provisions in the legislation. Billions of dollars will be invested in renewable energy, rebates for people opting to buy electric cars and household support to encourage people to run on clean electricity and become more energy efficient.

Anand Gopal, executive director of policy at Energy Innovation, said:

“This bill will really turbocharge that transition to clean energy – it will transform markets where already solar PV, wind and batteries are in many cases cheaper than incumbent fossil fuels. This is a dramatically large climate bill, the biggest in US history if it passes. It doesn’t mean the US won’t need to do more to achieve its emissions goals but it will make a meaningful difference.”

The new legislation has outlined numerous incentives to encourage the US public to switch to clean energy and reduce global waste. A rebate of up to $7,500 for a new electric vehicle will be available for consumers, whilst people looking to install a modern electric heat pump that can both heat and cool buildings will be eligible to up to $8,000. Further rebates include $1,600 being provided to individuals who insulate and seal a house to make it more energy efficient.

In the UK, tens of billions of pounds are being invested in wind power and hydrogen and floating wind technology to reduce the UK’s contribution to greenhouse gases.

The UK Government’s domestic Renewable Heat Incentive scheme is available for households in England, Wales and Scotland, allowing applicants who are successful to receive quarterly cash payments over a period of seven years for installing eligible renewable heating technology.

The UK’s Climate Change Act provides a long-term framework to manage carbon emissions. Under the Act, it is established that the UK’s target is to bring all greenhouse gas emissions to net zero by 2050.

The focus of the UK government’s energy strategy is the expansion of home-grown, low-carbon sources for the UK’s energy supply over the next 20 years. Other commitments have been made including the removal of Russian oil and coal imports by the end of 2022, with the removal of Russian gas "as soon as possible".