However, there is no doubt this is a big deal for the climate as the US is responsible for around 15% of global CO2 emissions...second only to China with 28%.
The bill will transform how Americans generate and use their energy and should shape their climate change and industrial policy for decades into the future when formally passed by the House in the next few days.
The legislation will provide billions of dollars for the expansion of solar and wind power production adding an additional 550GW which will more than tripple clean energy production to power over 100m homes. Here’s a summary of the main provisions (pdf).
Of course, investment from the federal government on such a massive scale will give more confidence to attract much more investment from individual states and the private sector in green energy. Some commentators are suggesting this could be as much as $2 trillion.
INRG 3m Share Price
Obviously this will be a welcome boost for the renewable energy industry. The likes of iShares Global Clean Energy (March update) holds many of the US based companies - Plug Power, Enphase, Solaredge - that should benefit from this legislation over the coming years so that’s one I will be holding long term.