US Inflation Reduction Act drives demand for capital and project expertise in methanol and renewable natural gas | Macquarie Group

New markets, new opportunities

Efforts to decarbonise the US economy are not without their challenges. For businesses looking to build out their renewable energy offerings, the IRA offers unprecedented inducements – but leveraging them can be complex, requiring legal and tax expertise to navigate the new rules and regulations. However, as a catalyst for investment in the energy transition, the legislation goes further than any in US history to stimulate private capital investment, drive innovation and reduce the cost of production in renewable energy markets.²¹

In the 12 months after the IRA was passed, its provisions – including investment and production tax credits – resulted in more than $US110 billion in new investment in clean technology manufacturing alone.²² The addition of direct pay and transferability as new options to monetise these tax credits has also provided additional support for developers and sponsors as they look to build out the funding package for their projects.

Macquarie is working with clients and partners to leverage opportunities created by the IRA to scale up the deployment of cleaner technologies and support them on their paths to decarbonisation. Our experience deploying low-carbon solutions globally, along with the complementary capabilities of our business, positions us to support our clients in delivering on their near-term low-carbon strategies and long-term sustainability goals.

“Across Macquarie’s global businesses, we have seen that when government policies change, markets change, and our clients take action,” says Janet Dietrich, Global Head of Energy Transition and Strategy for Macquarie’s Commodities & Global Markets business. “We’re focused on shepherding our clients through the energy transition – providing not only risk management, market access, physical execution, logistics and capital solutions, but also in-depth knowledge of how to leverage the IRA to address new market opportunities.”

SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The issues highlighted in the article are connected to SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation, and Infrastructure), SDG 13 (Climate Action), and SDG 17 (Partnerships for the Goals).

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s content, the specific targets that can be identified are:

• SDG 7.2: Increase the share of renewable energy in the global energy mix
• SDG 9.4: Upgrade infrastructure and retrofit industries to make them sustainable
• SDG 9.5: Enhance scientific research, upgrade technological capabilities, and encourage innovation
• SDG 13.2: Integrate climate change measures into national policies, strategies, and planning
• SDG 17.16: Enhance the global partnership for sustainable development

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article does not mention any specific indicators that can be used to measure progress towards the identified targets.

4. SDGs, Targets, and Indicators

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Source: macquarie.com

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