Here's how the Inflation Reduction Act is impacting green job creation

When US President Joe Biden signed the Inflation Reduction Act (IRA) into law in August 2022 it immediately released $370 billion worth of funding to provide tax credits for clean energy projects. The aim is to cut US greenhouse gas emissions by 40% below 2005 levels by the end of the decade, but what kind of impact has it had so far?

More than 100,000 ‘green jobs’ were created in the US in less than six months after the IRA was signed into law, according to new research. Non-profit Climate Power says, as of the end of January 2023, 94 clean energy projects were ongoing, representing almost $90 billion in new private-sector investments.

The wind, solar and electric vehicle (EV) sectors are creating new jobs for electricians, technicians, mechanics, construction workers and many others. The report says more than nine million green jobs could be created over the next decade.

“Thanks to President Biden’s affordable clean energy plan, businesses are investing in manufacturing like never before and planning to create good paying jobs in every corner of the country,” said Lori Lodes, Executive Director of Climate Power.

“This is only the beginning – we’re months after the passage of the Inflation Reduction Act and we’re already at the precipice of a renewed manufacturing, Made in America boom… all while reducing toxic emissions that harm the health and wellbeing of our communities,” she added.

Investing across the US in green energy jobs

The report highlights several states where billions of dollars have been invested in new green jobs since the Inflation Reduction Act came into effect. These include:

In 2021, there were approximately 923,400 clean energy jobs in the US, according to the International Renewable Energy Agency (IRENA), which predicts the Inflation Reduction Act will help create millions more over the next decade.

However, the rapid rise in green jobs isn’t just happening in the US. IRENA’s Renewable Energy and Jobs: Annual Review 2022 reports that employment in renewable energy could rise to more than 38 million globally by the end of the decade. Worldwide employment in the clean energy sector grew by 700,000 from 2020-2021, reaching 12.7 million jobs, it says.

Solar provided the biggest share of renewable energy jobs at 4.3 million, while hydropower and biofuels generated 2.4 million each, and wind power provided 1.3 million new jobs. Other sectors like geothermal, heat pumps and ocean energy made up the rest of the jobs growth, IRENA says.

The World Economic Forum is working to highlight the importance of the green and social sectors to the future health and stability of the global economy. “The climate crisis and geopolitical tensions are accelerating the shift towards greener economies and greater energy independence. Providing a socially inclusive and environmentally sustainable economy is a key policy goal for many countries,” the Forum notes in a recent report.

Its Jobs of Tomorrow white paper series seeks to quantify the need for green and social jobs in 10 countries, by 2030, to meet inclusion and environmental ambitions. It is a call to action for governments and businesses to prioritize investment in these roles, as well as the systems that support them.