ESG Legislation in the United States under the Biden Administration

(As of April 2025)

Inflation Reduction Act (IRA) of 2022:

On August 19, 2022, President Biden signed the Inflation Reduction Act (“IRA” or “Act”), which though not as sweeping as the Green New Deal proposed by some Democrats, still marked the largest climate action ever taken by the federal government. The IRA focuses on lowering energy costs, increasing cleaner production, investing in domestic energy manufacturing, and reducing carbon emissions.  It aims, by 2030, to cut emissions by 40% from 2005 levels.  The IRA earmarks approximately $370 billion for Energy Security and Climate Change programs over the next ten years – including clean energy, electric vehicles, and carbon capture and storage. The Act includes consumer provisions, such as (for example) tax rebates to encourage people to make homes energy efficient and buy electric vehicles.  It also includes investments in sustainable business development (such as solar panels, wind turbines, carbon capture, clean hydrogen, and electric vehicles).  In addition, the IRA focuses on promoting environmental justice. Collectively, these provisions allow for government investment in a clean-energy economy where consumers are incentivized to buy clean energy and businesses are incentivized to create it.

Bipartisan Infrastructure Law (BIL) of 2021

In November 2021, Biden signed the Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law (BIL). The legislation authorized an investment of $1.2 trillion in modernizing U.S. infrastructure while addressing climate change and promoting clean energy.

  • $65 billion to upgrade the power grid, including building new transmission lines for renewable energy and improving grid resilience against extreme weather.Funding for clean energy research, development, and demonstration projects.

  • $7.5 billion to build a national network of EV charging stations, making EVs more accessible and practical for Americans.

American Innovation and Manufacturing (AIM) Act of 2020

The AIM Act is a bipartisan piece of legislation enacted in December 2020, aimed at reducing the production and use of hydrofluorocarbons (HFCs), which are potent greenhouse gases commonly used in refrigeration, air conditioning, and foam-blowing applications. The law empowers the Environmental Protection Agency (EPA) to phase down HFCs and transition to more climate-friendly alternatives.