The Inflation Reduction Act through the Lens of the SDGs

How does this most current piece of legislation address the world’s to-do list?

Last month President Biden signed into law The Inflation Reduction Act — a massive victory in the fight for sustainability both in the United States and across the globe. Most notably, it marks the largest investment in combating climate change in US history (SDG13 — Climate Action), lowers costs of prescription drugs (SDG1- No poverty), and raises taxes on corporations (SDG10 — Reduced Inequalities). While it likely won’t impact individual inflation significantly or quickly, experts say the bill will reduce the country’s overall deficit by 4%.

Many if not all issues noted in the 730-page law directly correlate to the United Nations 17 Sustainable Development Goals (SDGs). While the language of the SDGs has yet to gain mainstream popularity in the United States, this bill shows progress in the adoption of the concepts. Below is a breakdown of the most notable elements of the bill and the associated SDGs.

• Adjusts prescription drug pricing, a cost that has been contributing to skyrocketing healthcare prices for decades keeping many people in poverty. (SDG 1 — No Poverty, SDG 3 — Good Health and Wellbeing)
• Extends the Affordable Care Act subsidies which, if left unaddressed, would have left 3 million Americans uninsured. (SDG 3 — Good Health and Wellbeing)
• Provides much-needed funding to the IRS for better customer service and tax enforcement. (SDG 16 — Peace, Justice, and Strong Institutions)
• Taxes companies making more than $1 billion a year 15%, which has been estimated to bring in more than $300 billion in new revenue. Individuals and households will not see any increases. (SDG 10 — Reduced Inequalities)

• Invests $369 billion toward combating climate change, making it THE largest contribution in US History (SDG 13 — Climate Action). Another 4 billion is slated specifically for Western Drought Resiliency.
• Cuts greenhouse emissions by 40% (from 2005 levels) by 2030.

• Provides funding in the form of loans and grants for projects addressing affordable housing and climate change issues, including increase energy of water efficiency in affordable housing (SDG 11 — Sustainable Cities and Communities, SDG 6 — Clean water and sanitation, SDG 7 — Affordable and clean energy)

• Funds coastal communities and marine habitats for example National Oceanic and Atmospheric Administration (NOAA) (SDG 14 — Life Below Water)
• Develops and demonstrates innovation of low-emission aviation technologies (SDG 9 — Industry, Innovation, and Infrastructure)

• Provides funds for the Department of Energy to provide energy rebates, energy efficiencies in buildings, electric transmissions, advanced industrial familiar, and other energy matters (SDG 7 — Affordable and Clean Energy)
• Funds the EPA and other environmental agencies (SDG 13 — Climate Action, SDG 13 — Life under Water, SDG 14 — Life on Land, +).

• Provides funds to the United States Fish and Wildlife Services for the conservation and survival of threatened and endangered species (SDG 13 — Life under Water, SDG 14 — Life on Land)

• Funds sustainability initiatives for the Department of homeland security, US postal service, Federal Emergency Management Agency (FEMA), disaster relief etc. (SDG 16 — Peace, Justice, and Strong Institutions)

• Provides funding for indigenous tribes to address climate change (SDG 13 — Climate Action, SDG 10 — Reduce Inequalities)

This hallmark piece of legislation is an important step in massive progress toward the planet’s shared goals. As the world’s foremost economic leader, the United States’ actions have an enormous impact across the world. The adoption of legislation in alignment with the United Nations’ SDGs has the potential to shift the tide in achieving global sustainability. But the government is just one piece of the puzzle. The private sector has the ability to leverage this moment at a speed with which the government cannot. Businesses and consumers will play a vital role in this shift toward global sustainability. Companies such as Solubag, Patagonia, Eileen Fisher, Oatly, and more are already paving the way through innovative solutions to these pressing issues. How will you and your business show up for sustainable development?

If you are having trouble wrapping your head around where to begin, our SDG Assessment helps you clarify your values and organize the work you’re already doing towards the SDGs. Visit 17Ways.co to get started on your sustainability journey.

Read more on the United:

• Visit our blog to see how other businesses are doing the work toward the SDGs
• Read more about the Inflation Reduction Act here.
• Who qualifies for these new tax credits and rebates?
• Learn more about the United Nations’ Sustainable Development Goals.