Cash is King, Mother Earth is Queen
There are tons of topics we've heard of and know about but may not know the ins and outs of, you know? Cryptocurrency, for example. Or what tax breaks you qualify for. Fortunately, you have us — it’s all about money this week and how it relates to climate.
— Written by Shayna Berglas
How You Can Use the IRA to Save Money
So, about those tax breaks…
On January 1st, Americans gained the ability to save thousands of dollars when they purchase electric vehicles, induction stoves, and contemporary appliances as a result of the passing of the Inflation Reduction Act.
A large portion of the new law’s $369 billion for climate initiatives includes rebates and tax credits created to help consumers swap fossil fuels for renewable energy. Of course, not everyone is ready to get rid of their car or for the home renovation that’ll allow them to switch their furnace. But even if it’s not a part of your 2023 plan,the IRA’s incentives still apply.
Tax credits, which can be redeemed when you submit your taxes the following year, and rebates, which reduce the upfront cost of installation and equipment, are the two main categories of incentives available. In a recent article, Vox shared some examples of technologies you might want to consider upgrading in order to take advantage of these credits, such as breaker boxes, rooftop solar, weatherization and insulation, residential battery systems, and more.
Making these upgrades will help cut down on spending and save the planet. That’s an electric combo, if I do say so myself.
Dig deeper today:
Good Climate News! 🌍
The World Bank is thinking about making climate action a bigger part of its mission. I’ll expand, but just in case the institution strikes you as mysterious, here’s a bit of background:
The World Bank Group was founded following World War II, and its fundamental goals have been to combat severe poverty and foster economic development. The U.S. government is its largest shareholder, and, according to a recent draft "evolution roadmap" created by bank staff, it’s starting to lean towards more climate-friendly solutions.
The bank will expand beyond its existing "twin goals" of ending extreme poverty and promoting shared prosperity, according to the 20-page paper dated December 18th. In its $88 billion commitment for the 2022 fiscal year, the World Bank Group classified $31.7 billion (or 36%) as climate funding. But it's not all good news – it still includes fossil fuels in its portfolio, having spent $1.7 billion on the oil and gas industry in 2021.
What are the critics saying?
Something like, “not enough.” Many feel the plan moves too slowly, particularly because, in the next five years, multilateral development banks like the World Bank should increase their climate finance by 3x, according to a group of UN-appointed experts.
Recently, however, national governments have pushed to alter the practices of multilateral lenders, like the World Bank, to release more money. The new roadmap would facilitate access to World Bank money for countries, like the Maldives, that are vulnerable to climate change but are not among the world's least wealthy. The World Bank is feeling the pressure, and the pressure is working.
What We’re Watching 🎥, Reading 📚, and Listening to 🎧
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