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The Inflation Reduction Act presupposes a private sector–led transition. But battles over its implementation could build the political constituencies and expertise needed to take on the fossil fuel industry.

by Kate Aronoff, Dissent

The Inflation Reduction Act would not have happened without the movement for a Green New Deal, but it shouldn’t be confused for one. The climate left (broadly defined) now faces a novel problem: how to deal with having won something—and keep fighting for more.

It’s understandably hard for those who supported Green New Deal proposals for transformative investments in public goods to see the IRA—a bundle of tax credits whose benefits accrue largely to corporations—as a consolation prize. For the many climate hawks galvanized by Bernie Sanders’s bid for the Democratic nomination in 2020, it’s also a far cry from what, for a moment, looked to be within striking distance: governing power.

Participants to the Women's March event holds

In some ways the IRA’s passage—and Republicans taking back the House a few months later—marks a return to normal for the climate left. But Democratic Party politics have changed. Top Democratic policymakers openly discuss the need for industrial policy (what one International Monetary Fund paper dubs “the policy that shall not be named”), and hundreds of billions of dollars will soon go out the door to build up domestic supply chains for things like battery storage and critical minerals. In practice, however, that means letting the public sector shoulder the risks of an energy transition while the private sector reaps the rewards. By all accounts the White House seems to imagine climate policy as the project of turning clean energy technologies into a more attractive asset class for investors.

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Environment and the Green New Deal