Opportunities in the new green economy—with a boost from government

The sustainability business case just got stronger

One of the ways to check the damaging impacts of climate change is that the global economy should decarbonize, transitioning away from fossil fuels and wasteful practices. And now the US government has made it easier for leaders to make the decisions necessary to help make it happen. A combination of tax incentives and green infrastructure investment—in the Inflation Reduction Act (IRA), the Infrastructure Investment and Jobs Act (IIJA), and the CHIPS Act—is making green strategies a competitive as well as a social imperative and aligning business objectives with all-important decarbonization goals.

This article launches Deloitte’s Climate Policy Initiative, initiating a series exploring how both public- and private-sector organizations can take advantage of the new sustainability business case with government incentives, funding, and infrastructure helping to surmount the barriers of high upfront investment costs and uncertain ROI. The IRA directs roughly US$400 billion toward reducing pollution and expanding clean energy, converting many large-scale, cost-intensive corporate sustainability and equity efforts into far more financially viable initiatives than they would have remained without these incentives. And the law’s renewable power and technology incentives could catalyze trillions of dollars more in private-sector spending and investments for the low-carbon transformation of the world’s largest economy.

What to expect

Over the coming weeks and months, we’ll be exploring this legislation’s broad impact, with input from thought leaders in touch with executives’ top questions and concerns. We’ll be looking at what the coming wave of investment and incentives means for leaders in the auto industry, life sciences, financial services, telecommunications, consumer goods, health care, and more. With legislation offering billions in tax credits, tax leaders will play a central role in directing investment and R&D. And government agencies will face fresh challenges in working with companies seeking to take advantage of newly available resources.

Explore more about sustainability, climate, and equity.