Climate Change

The stakes are high at the upcoming UN Climate Change Conference (COP28), which will be hosted in the United Arab Emirates in November 2023. The United Nations’ Intergovernmental Panel on Climate Change’s (IPCC) latest publication on the state of climate in the world, the Sixth Assessment Report, warns that countries are way off track to limiting warming to 1.5 degrees above pre-industrial levels to avoid the worst impacts of climate change. The science clearly shows it is no longer a question of “if” human activities are the main cause of the disruption to nature - they certainly are - but there is also explicit evidence that we also have affordable and effective solutions that require immediate action and a serious commitment to changing our energy system. While past COP summits have attempted to reach consensus and binding international agreements on emission reduction strategies and goals, previous IPCC reports have repeatedly stated that climate plans need to be more ambitious. Despite this, countries are still lagging behind, even on the goals that are considered insufficient. With this, a number of pressing issues are expected to be at the forefront of the Dubai COP.

Due to a number of circumstances, including Covid-19 supply disruptions, rising oil and food prices, and Russia's conflict in Ukraine, the world is currently suffering from high inflation. Likewise, the United States (US) is currently dealing with excessive inflation brought on by the inability of supply to keep up with demand and the increase of production costs. Following the Covid-19 pandemic, federal measures assisted in restoring employment and household income, but inflationary pressures also emerged. In attempt to combat such inflation the Federal Reserve has raised interest rates several times and the Congress passed the Inflation Reduction Act (IRA) which is considered an answer to some of the biggest challenges facing the country and a crucial step toward creating a more resilient and inclusive economy. The following will discuss the impact of the IRA on the US economy and evaluate its effects since its enactment.