Impax Questions Efficiency of US Inflation Reduction Act
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Impax Asset Management’s Concerns
Impax Asset Management, a leading green investment firm, has expressed concerns over hurdles arising from the
United States’ Inflation Reduction Act (IRA). Initially lauded for its potential in climate change
mitigation, the IRA is now under scrutiny due to the complications engendered by the clean-energy tax
credits incorporated within the legislation.
Complications in Green Investment
The complexity of these tax credits, Impax argues, is causing inefficiency in the financial structuring of
green projects. The credits, seemingly favoring financial intermediaries, are purportedly resulting in
lesser funding reaching the intended environmentally beneficial projects.
Shadows on the Inflation Reduction Act
This critique uncovers concerns within the green investment community regarding the efficiency and direct
investment in green initiatives. While the IRA’s intentions are lauded for their positive impact on climate
action, doubts are cast on its execution.
The Role of BESS in clean energy
In the broader context, the article explores the challenges and opportunities in implementing battery
energy storage systems (BESS) to support clean energy and climate goals. The focus is on the
regulatory and siting aspects, emphasizing the need for swift and expansive enactment of infrastructure to
transition energy supply to clean, renewable sources.
Policy and Implementation Challenges
The article addresses the need to update interconnection regulations, the influence of federal policies on
incentivizing storage adoption, and the importance of identifying the right location for a BESS project. It
discusses the expansion of siting potential for BESS projects under the federal investment tax credit, the
hurdles of obtaining local permits, and the impacts of BESS projects on local communities.
Challenges in Implementing the Hydrogen Strategy
The U.S. has recently added $1 billion in demand side initiatives to $7 billion of hydrogen supply subsidies
and substantial tax credits to maximize economic success in clean hydrogen production. However, the U.S. is
grappling with challenges in environmental, technical, and political aspects in the implementation of the
hydrogen strategy. The administration is also addressing potential economic obstacles to the successful
implementation of the H2Hubs program and acceptance of hydrogen as a commercially acceptable
Read More of this Story at bnnbreaking.com – 2024-01-15 22:55:00
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