Marking a victory for the Biden administration’s domestic agenda and the end of negotiation bottlenecks among Senate Democrats, the legislation earmarks a total of $369 billion to combat “the existential crisis of climate change,” according to recent remarks from Biden.
As the climate sector prepares for an influx of capital, research firm Morningstar Direct revealed that investors have already poured $425.5 million into renewable energy exchange-traded funds. In the entire month of July, investors placed $112.8 million into such assets.
Indeed, iShares’ Global Clean Energy ETF has risen 23% over the past month, while Invesco’s Global Clean Energy ETF has risen 22% over the same horizon.
A fact sheet from the office of Senate Majority Leader Chuck Schumer (D-NY) claimed that the Inflation Reduction Act will create 9 million jobs across the United States while bringing “manufacturing of clean technology like solar panels, wind turbines, batteries, and much more back to America.” Among other items, the legislation funds $160 billion in clean electricity tax credits, $43 billion in production tax credits, and $40 billion in tax credits to make buildings more energy efficient.
Yet the $7,500 tax credits for electric vehicle purchases — a key promise of the Biden administration — already appear to have backfired. Citing “significant…