Enviva applauds the Inflation Reduction Act and the bold commitment to reduce carbon emissions by roughly 40% by 2030
Enviva’s mission is to fight climate change by providing renewable alternatives to fossils fuels and playing an active role in transformational decarbonization solutions. The Inflation Reduction Act of 2022 is one of the most progressive financial commitments in U.S. history to tackle global warming.
The Inflation Reduction Act (IRA) represents a historic action by the United States to support the global clean energy transition as well as climate change mitigation strategies in the United States. The IRA directs $370 billion for energy security and climate change resources, utilizing investments and tax credits to incentivize wind, solar and other renewable power sources, such as sustainably sourced biomass, while helping consumers purchase electric vehicles and install energy-efficient heating and cooling systems in their homes.
Specific to bioenergy, the law doubles down on the U.S. commitment to sustainable aviation fuel (SAF) by providing tax credits for every gallon of SAF produced based on lifecycle greenhouse gas emission reduction percentages. Further, the IRA extends and modifies the tax credit for the production of renewable energy from biomass and other technologies. The legislation also enhances tax credits for carbon capture, utilization, and storage (CCUS) at both industrial facilities and power plants in the U.S.
Historically, Enviva’s business has been export-driven, with a limited domestic customer base. Recently, we signed our first contract with a US-based SAF producer, and we are encouraged by the actions taken by Congress and the White House about the potential for a significant domestic market. We look forward to having the chance to bring the substantial climate change benefits that Enviva has delivered around the globe for more than a decade to big emerging opportunities right here at home.