Climate Law Could Cut Emissions Costs Up To $1.9 Trillion: OMB [1]
"The Inflation Reduction Act, the tax and climate bill President Biden signed into law last week, could reduce the costs from climate-related damages by up to $1.9 trillion, according to an analysis by the Office of Management and Budget (OMB).
The analysis published Tuesday is based on three models crafted by Rhodium Group and Princeton University. They found the law’s climate provisions could potentially cut up to 1 billion annual metric tons of carbon dioxide by the end of the decade, nearly meeting the White House target of cutting emissions in half relative to 2005 by 2030.
To model the reductions beyond 2030, the analysis uses the “social cost of carbon” metric, or the financial damages associated with a projected future level of carbon pollution. The analysis notes that the model assumes yearly reductions through 2030 will continue at a comparable pace through the next two decades, which is likely a conservative estimate."