IRA did it reduce CO2 emissions?
We just celebrated one year anniversary of Inflation Reduction Act (IRA) which is supposed to reduce (according to White House) emissions by 50 to 55 % by 2030 compared to 2005. The reality is that the incremental CO2 emissions reduced by IRA by 2030 are about 9 % more than what would be without IRA (according to Energy Information Administration). This translates about $ 212/ton for CO2 removal - a significantly higher cost compared to trading cost of ton of CO2 which is about $ 60/ton. Moreover, while USA is reducing CO2 emissions in its own backyard, it is also exporting more and more oil and gas to other countries which will be converted into CO2. Over the next 10 years, there will be approximately 600 million tons of additional CO2 emitted into atmosphere because of incremental oil and gas exported to other countries compared to reduction because of IRA. When we subsidize energy, the consumption of energy always increases as other countries will buy the cheap energy available. So there will be no CO2 reduction because of IRA
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