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How a half-trillion dollars is transforming climate technology

One year ago, the Inflation Reduction Act was signed into law, marking the most significant action on climate change to date from the federal government. The legislation set aside hundreds of billions of dollars to support both new and existing technologies—from solar panels and heat pumps to batteries for electric vehicles—in an effort to slash costs for clean technologies and cut greenhouse gas emissions that cause climate change.

Experts say the IRA has already begun making waves across the economy, most visibly through a steady stream of company announcements unveiling new manufacturing facilities in the US. However, the most significant effects from the legislation are still to come, as many of the programs are designed to last for a decade or longer. There are even some remaining questions about how key pieces of the bill will play out, including which projects will be eligible for heavily debated tax credits for hydrogen fuel.

The IRA includes hundreds of billions in grants, loans, and tax credits that will transform industries including energy, transportation, and agriculture. The funds will flow to technologies at several stages of development, supporting new research along with manufacturing and deployment of more established technologies.

Read the original article in MIT Technology Review.