Dai Qingli, President of the Paulson Institute: If the US IRA bill is realized, it may require $1 trillion

In the first half of this year, the United States officially implemented the Inflation Reduction Act (IRA), which has attracted global attention on the impact of this bill on low-carbon enterprises such as new energy around the world. Recently, IFF Vice President and Paulson Institute Vice Chairman and President Dai Qingli said at the 20th anniversary global annual meeting of the International Finance Forum (IFF) "Responding to Global Climate Change: Laws and Incentives" sub-forum that the U.S. Inflation Reduction Act (IRA) is the largest climate law in the history of the United States, which covers a wide range of economic sectors such as renewable energy, manufacturing, and housing construction. The bill seeks to drive society's transition to a clean energy economy by providing grants, loans, deductions, and other incentives to businesses, consumers, and city governments. It was previously estimated that $400 billion would be needed to implement the IRA, but new projections suggest that the bill could cost $1 trillion over the next decade if it materializes. She pointed out that in terms of carbon emissions, the IRA hopes to reduce carbon emissions in the economic and productive sectors by 40% by 2030, which is based on the 2005 baseline. Many people believe that IRAs can have a multiplier effect on technological innovation and climate investment, and can contribute to the global response to the challenge of climate change, and she stressed that China and Europe already have many effective incentives in this regard, and that the incentives to promote climate innovation will also increase significantly globally. Now, the key is to ensure that these innovations reach the countries and regions that really need them around the world.

(The video shows Dai Qingli speaking at the sub-forum "Responding to Global Climate Change: Rules and Incentives" at the 20th Anniversary Global Annual Conference of the International Finance Forum (IFF))

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Wu Lei, Xu Shanshan, Wang Rui