Issue highlights:

• Are Climate Action and Inflation Reduction Synonymous?

• Cities in the News

• New Article: P3s for a Greener Michigan

Dear friends,

You might have thought the US would never pass a climate bill. And as of a few weeks ago, I would have been there right with you! But it seems that compromise is still possible. 

Enter the Inflation Reduction Act. 

Truth be told, I thought “Inflation Reduction” was just a catchy political stamp to appease inflation-concerned Americans. Besides critical revenue measures (more tax collection and lower drug costs), the IRA will invest in drought mitigation, urban parks, electric vehicle adoption, and clean energy to slow climate change and combat future inflation.

This month, I’m diving into the relationship between climate action and inflation. After hours of research, it’s evident that timely and expansive climate investment will have long-term consequences on the US economy, impacting how we build better cities.

Hope this gets you thinking.
Kate

Climate Change -> Supply Chain Issues -> Cost Hikes

The IRA aims to mitigate climate change and reduce the frequency and extremity of climate events (re: hurricanes, fires, heat waves, etc.). This should help reduce the impact catastrophic climate events have on the production and transport of various goods and services. 

• Climate events = less food, failing infrastructure, and declining employment [Axios] 

• Surge pricing for construction labor stays strong 6-months after climate disasters [ASCE]

• Maps show climate risk jeopardizes coastal supply chains [HBR]

Dirty Fuel -> Expensive, Unpredictable Energy Costs

IRA investments will green the grid, introducing technologies that shift away from expensive and unpredictable dirty fuel sources. While we ride down the cost curve for energy storage and figure-out unlimited energy sources like fusion, fossil fuels will remain a necessity. And thanks to Senator Joe Manchin, the IRA ensures these assets are a mainstay. 

• Once constructed, renewables are cheaper than coal, gas [NYTimes]

• Investing in renewable energy might put an end to the geopolitics of fossil fuels [Reuters]

• US green bank will drive investment into fuel alternatives [Inside Climate News]

More Climate Action -> Higher Costs for Green Tech

Green tech costs will rise as more consumers, driven by market conditions and new policies, make the switch to electric vehicles and demand energy efficient home upgrades. The IRA rebates and incentives will lower costs for EVs, air pumps, etc. and help families make more sustainable decisions without adding to inflation. 

• Rebates for energy efficiency upgrades will lower monthly bills [Axios]

• Until US EV production ramps up, tax credits help some families ditch their gas guzzlers [NYTimes]

• IRA provides partial funding to disadvantaged communities in need of climate tech [NPR]

Cities in the News

• Revive siesta- Spain’s new rules in a gas-strapped economy [CityLab]

• Having a hard time picturing a better city? Check this out! [Curbed]

• >20 years after banning cars, Pontevedra attracts more people [Politico]

• Meet the next future city: Hyudai’s hexagonal city [FutureTransport]

• US traffic fatalities hit 16-year high, the culprit: stroads [Vox]

New Article: Bold Climate Action in MI

Check out my latest article with Melissa Zaksek of University of Michigan. They say Michigan is a climate haven, but that depends on how the public, private, and third sector work together towards a greener economy.

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