The Inflation Reduction Act Was Years in the Making, and Will Power Our Economy for Years To Come

September 13, 2022 /3BL Media/ - Ceres President and CEO Mindy Lubber attended today’s White House ceremony to celebrate the Inflation Reduction Act of 2022, the largest investment in combating climate change and realizing the benefits of a clean energy economy in American history. Over the last year, Ceres mobilized hundreds of companies and investors in support of the package, which is expected to achieve a 40% or greater reduction in U.S. climate pollution by 2030, grow the nation’s clean energy economy through substantial incentives for companies and consumers, and invest in key environmental justice initiatives to bring the benefits of climate action to rural, disadvantaged, and energy communities across the country.

Lubber, who attended the ceremony with other Ceres staff members and private sector partners, issued the following statement following today’s ceremony:

“The Inflation Reduction Act is the legislation our planet and our economy have needed for decades, and a cause for celebration for those of us who have fought long and hard for this historic federal climate investment. While this package is tailored to the unique geopolitical and economic circumstances of the moment, its impact will extend far beyond, powering our economy for years to come and benefiting anybody who calls our planet home now and in the future.

“For more than 30 years, Ceres has shown that sustainability is the only way to build an economy for the long run. Our years of work organizing businesses as advocates for meaningful climate policy helped to marshal the hundreds of leading companies and investors that tirelessly advocated for the climate, clean energy, and environmental justice investments the Inflation Reduction Act has delivered. This package’s benefits to our climate are massive, but so too is its promise for our economy. It will advance U.S. growth and competitiveness, generate cost-savings for households and businesses, build new American manufacturing capabilities and supply chains, and bolster our national energy security with clean, domestic, and affordable resources. We are especially pleased to see several measures in this deal designed to address environmental justice by supporting the communities that for too long have been overly burdened with pollution or left behind in our economy.

“The Inflation Reduction Act marks a monumental step in the fight against the climate crisis. But to meet our nation’s 2030 goals and complete the transition to a just and inclusive net zero economy by 2050, more work lies ahead. Crucially, this deal will make it easier for all actors in the public and private sectors to take the action they now must. Companies, investors, state and federal lawmakers and regulators, and all other stakeholders across our economy must take full advantage of this package, build upon it, and act on their own ambitious plans to ensure those all-important targets are met. In the years to come, Ceres pledges to continue working with all of them, including through our enterprising Policy program and our Ambition 2030 initiative to accelerate emissions reductions in the most challenging industries.

“But this is a day for celebration. We thank President Biden, Leader Schumer, and Speaker Pelosi for their leadership, as well as Sen. Manchin and the many lawmakers who championed these measures for months and those who negotiated this landmark deal. We are also proud of the many businesses and investors who called for this package for more than a year, and without whose support the Inflation Reduction Act would not have passed. Their advocacy demonstrated what we have always known: that robust climate, clean energy, and environmental justice policy is critical to a well-functioning economy.”

Ceres has long worked with companies and investors to support bold climate policies that accelerate the shift to a clean energy economy, because these policies are essential to limiting climate-related economic risk and creating the considerable business opportunities in addressing this challenge.

After President Biden last year established a goal to reduce climate pollution at least 50% by 2030, hundreds of companies and investors pressed Congress to pass major climate legislation, successfully advocating for the inclusion of significant clean transportation, clean energy, climate resilience, and environmental justice measures in the bipartisan Infrastructure Investments and Jobs Act of 2021. Companies from across the U.S. economy then continued to call for federal lawmakers to pass more ambitious climate legislation in a budget deal that eventually became the Inflation Reduction Act.

More than 2,900 companies with over $5.1 trillion in annual revenue and more than 400 million global employees participated in this year-long push for federal investments in clean energy, clean transportation, advanced manufacturing, domestic supply chains, climate resilience, environmental justice, and resilient agriculture. These efforts included:

• A letter signed last December by 437 companies, investors, trade groups, and employers calling on the U.S. Senate to pass a package of climate investments that were previously passed by the House of Representatives;
• February meetings with dozens of senior leaders from influential companies and key Congressional offices to urge swift passage of a federal reconciliation bill including the historic climate, clean energy, and environmental justice investments;
• Participation by Siemens USA CEO Barbara Humpton in a March Punchbowl News event highlighting the substantial corporate advocacy for robust climate policy:
• A letter from nearly 50 large companies, each generating more than $200 million in annual revenue, calling for the climate package to advance as Congress returned to session in April;
• Meetings between more than 100 major companies and lawmakers of both parties in May, as part of LEAD on Climate 2022, pushing for Congressional climate action;
• A June letter from more than 1,000 companies of all sizes, representing every state in the country and industry in the economy, pressing the business case for these investments;
• A letter from seven CEOs at some of the nation’s largest companies, injecting their personal calls for climate provisions in a reconciliation deal at a critical point in the Senate negotiations;
• A business roundtable with President Biden on Aug. 4 focused on the IRA, that featured leaders from Carrier, Cummins, General Motors, and Kaiser Permanente;
• Individual statements from many large companies and trade associations in support of these climate provisions over the last year, including a surge of support for the IRA after Sens. Schumer and Manchin announced the deal in late July.
• A letter released days ahead of the Senate vote signed by dozens of large companies, urging approval of the Inflation Reduction Act.

About Ceres

Ceres is a nonprofit organization working with the most influential capital market leaders to solve the world’s greatest sustainability challenges. Through our powerful networks and global collaborations of investors, companies and nonprofits, we drive action and inspire equitable market-based and policy solutions throughout the economy to build a just and sustainable future. For more information, visit ceres.org and follow @CeresNews.

Media Contact: Helen Booth-Tobin