The Inflation Reduction Act (IRA) was designed in 2022 to accelerate the development of climate friendly green technologies in the US. 

Billions in subsidies are being paid to companies that manufacture battery storage systems and solar modules or develop sustainable fuels, for example. But also to people who buy electric cars or install heat pumps.

A new study has now revealed the magnitude of the investments.  In 2023, this increased by almost 40 per cent to 239 billion dollars. This is shown by figures from the Clean Investment Monitor, a research project by the Rhodium Group and the University of MIT, which documents investments in renewable energies and green technologies in the USA in detail.

The Marshall Plan was a U.S.-sponsored program designed to rehabilitate the economies of 17 western and southern European countries in order to create stable conditions in which democratic institutions could survive in the aftermath of World War II. 

In my view, the IRA has the potential to have a similar effect on the US economy as the Marshall Plan had for Europe and in particular Germany. Whilst there is a long way to go for the US in terms of a net zero economy, the IRA certainly moves the needle in the right direction!