President Joe Biden’s IRA, which took effect in August 2022, provides billions of dollars in tax credits to help consumers buy electric vehicles and companies produce renewable energy.

The Environmental Protection Agency (EPA) report analysed the impacts of an estimated $US391 billion of support under the IRA for climate and clean energy programmes and incentives through 2031.

The US’ annual carbon dioxide emissions should decline to a median of 3,300 metric tonnes in 2035, below the 4,100 metric tonnes projected without the IRA – equivalent to shutting 214 coal-fired power plants – and down from 6,130 metric tonnes in 2005, the report said.

The report showed that the EPA “has supercharged climate action in the United States,” said John Podesta, a senior White House advisor on clean energy.

It projected CO2 emissions from electricity production in 2030 declining by 49% to 83% from 2005 levels, largely driven by greater use of solar and wind output.

By 2035, electricity CO2 emissions on average will be half of what they would be in the ‘No IRA’ scenario, the models showed.

The modelling does not include the impact of a contested plan announced by the EPA in July to slash US power plant emissions through large-scale use of carbon capture and green hydrogen.