US Energy Transition: The Path Toward Net Zero

What is the outlook for the US energy transition beyond the Inflation Reduction Act of 2022?

The shift toward a net-zero economy will depend on the acceleration of the adoption of renewables, a possible inclusion of hydrogen in the energy mix, reinvestment in nuclear energy, and a commercial role for carbon capture technologies. The Inflation Reduction Act of 2022 provides a significant down payment toward a low-carbon future, but it is insufficient to bring the country to its stated goal of carbon neutrality by 2050. Achieving further GHG reductions beyond what is projected as a result of the IRA will require significant additional efficiencies throughout the entire energy sector. The cost to deliver such improvements is as yet undefined, but the cost of doing nothing would undoubtedly be much worse.