What the Biden Climate Bill Left Out Is as Crucial as What Made It In
Examining both the unique strengths and critical gaps in Biden's climate legislation to reveal its full environmental impact.
When President Biden signed the Inflation Reduction Act (IRA), many hailed it as a turning point—a sweeping step forward in American climate policy. The bill allocates hundreds of billions for clean energy and environmental justice, aiming to curb greenhouse gas emissions and stimulate green jobs. But as environmentalists and analysts scrutinize its details, a more nuanced picture emerges: some of the most consequential climate actions aren’t those the bill enacts, but the ambitions and policies it leaves behind.
Understanding the Context: The Promise of Biden’s Climate Agenda
Biden entered office with ambitious climate goals:
- Cutting U.S. greenhouse gas emissions by 50–52% below 2005 levels by 2030
- Achieving net-zero emissions economy-wide by 2050
- Delivering 40% of federal climate benefits to disadvantaged communities
- Reach 100% carbon pollution-free electricity by 2035
The Inflation Reduction Act, passed in August 2022, remains the centerpiece of this effort, offering historic clean energy incentives, environmental justice funding, and emissions reduction targets. However, the bill’s compromises and omissions are shaping both the practical effects and future direction of U.S. climate leadership.
The Main Features of the Inflation Reduction Act—and What’s Missing
The IRA’s core achievements include:
- $196–372 billion in investments for clean energy production
- Decade-long tax credits for renewable energy and electric vehicles
- Support for building retrofits, energy efficiency, and manufacturing
- Cash incentives for clean technology and transportation
- Funding directed at environmental justice for vulnerable communities
But the bill’s compromises raise critical concerns:
- Continued support and expanded rights for oil and gas leasing on federal lands
- Limited regulations for the most polluting sectors, including agriculture and industrial facilities
- Exclusion of a national clean electricity standard
- Insufficient provisions to phase out fossil fuels aggressively
- Lack of large-scale investment in climate adaptation or natural climate solutions
Key Areas Covered and Overlooked by the Legislation
1. Energy Transition: Clean Power and Fossil Fuel Concessions
The act delivers a major boost for solar, wind, and other renewable energies through extensive tax credits and incentives. These credits are projected to unlock enormous market growth and technological innovation:
- Energy share of investments: $196–372 billion
- Projected cumulative clean energy tax credit market: $810 billion by 2033
Yet, the law also instructs that oil and gas auctions must occur before wind and solar leasing on federal lands, thus prioritizing fossil fuel expansion alongside renewables. The law raises royalty rates on fossil fuel projects but maintains their central role in the energy mix, reflecting the influence of moderate lawmakers.
What others are reading
2. Climate and Environmental Justice Funding
One of the bill’s most innovative strengths is its commitment to direct a significant share of climate benefits and investments to disadvantaged communities. Funding for environmental justice, land use, pollution reduction, and resilience is estimated at:
- $22–26 billion
However, environmental justice advocates argue that while these investments represent progress, the bill does not address root causes of pollution that disproportionately affect marginalized groups, nor guarantee enforcement mechanisms for community benefit.
3. Transportation and Infrastructure
The IRA provides incentives for electric vehicles, public transit modernization, and clean energy infrastructure. The transportation sector is eligible for:
- $23–436 billion in funding
Still, critics note the absence of mandatory emissions standards or meaningful restrictions on fossil fuel expansion for vehicles, shipping, and aviation. High-emitting sectors retain significant autonomy, slowing their transition to low-carbon solutions.
4. Agriculture, Land Use, and Natural Climate Solutions
Agricultural renewal programs receive a modest share of the bill’s climate investment:
- Estimated funding: $3–21 billion
This includes some grants for climate-smart practices, but the lack of transformative policy for farming emissions and land conservation remains a gap, especially given agriculture’s outsized role in U.S. emissions. The omission of larger-scale reforestation, soil carbon programs, and wetland restoration means the bill’s ecological impact is limited.
5. Methane Regulation—and Its Limitations
The IRA introduces a methane emissions fee for certain oil and gas facilities and expands greenhouse gas reporting requirements. This measure is expected to cut one of the most potent greenhouse gases. Yet, loopholes and exemptions for existing infrastructure dilute the law’s efficacy.
6. Missing Clean Electricity Standard (CES)
Environmentalists had hoped the IRA would create a federal Clean Electricity Standard (CES)—a policy requiring utilities to source a fixed percentage of their energy from renewables. Despite bipartisan support, the CES was omitted during negotiations, chiefly due to opposition from oil-state senators and industry groups. Without a CES, states and utilities face less pressure to accelerate their energy transition, making Biden’s target of 100% carbon-free electricity by 2035 harder to achieve.
7. Fossil Fuel Phase-Out: Progress Interrupted
Despite incentivizing clean energy, the bill delays or even blocks the phase-out of fossil fuels. It requires that the federal government hold oil and gas leases before allowing new wind or solar projects on public lands. While royalty rates for oil and gas are increased from 12.5% to 16.7%, the new rules maintain the sector’s dominance and undermine climate ambitions. This compromise allowed the IRA to pass but remains a central reason for ongoing climate activism.
8. Adaptation and Climate Resilience Remain Underfunded
While the IRA contains limited funding for resilience and adaptation—such as grants to support flood management and community preparedness—it does not address the scale anticipated by climate scientists. Larger projects to restore coastal infrastructure, revamp disaster response systems, or fortify agricultural systems against extreme weather still depend on future legislation or agency action.
Comparative Table: Climate Bill Provisions vs. Gaps
| Area | Included in the IRA | Missing or Underfunded |
|---|---|---|
| Clean Energy | Tax credits, massive investments, renewable support | No federal clean electricity standard; fossil fuel leasing persists |
| Environmental Justice | Billions for community projects and pollution reduction | Limited enforcement, scope, and community self-determination |
| Transportation | EV tax credits, transit, infrastructure | No mandatory emission standards for vehicles/aviation |
| Agriculture & Land | Grants for climate-smart farming | No transformative funding for reforestation, soil or wetlands |
| Methane | Emissions fee introduced | Loopholes for fossil infrastructure properties |
| Fossil Fuel Phase-Out | Raised royalty rates, some restrictions | Continued oil/gas leasing, lack of timeline |
| Adaptation & Resilience | Some project grants | Insufficient funding for large-scale adaptation |
Expert Insights: Why These Exclusions Matter
Analysts emphasize that the lack of a national clean energy mandate and weak fossil fuel curbs reflect the realities of U.S. politics, but they pose risks for meeting both domestic and global climate targets. Each omission can increase cumulative emissions, prolong dependence on oil and gas, and slow the shift to sustainable infrastructure. Furthermore, climate adaptation lags—potentially leaving communities vulnerable as impacts grow more intense.
Opportunities and Next Steps
Despite what’s missing, the IRA sets a new precedent for U.S. climate policy, advancing technology, jobs, and justice farther than prior laws. Experts and advocates recommend:
- Pursuing new legislation to close gaps in fossil fuel phase-out and energy standards
- Expanding direct investment in community adaptation and resilience
- Tightening regulations on high-emitting sectors without exemptions
- Advancing natural climate solutions through forestry, wetlands, and soil carbon approaches
- Ensuring full implementation and transparency for environmental justice projects
Many point to executive actions, state policy, corporate shifts, and future congresses as likely sources of forward movement.
Frequently Asked Questions (FAQs)
Q: What are the biggest achievements of Biden’s climate bill?
A: The Inflation Reduction Act massively increases clean energy investments, expands access to EVs, supports environmental justice, and sets the foundation for historic emissions cuts.
Q: Why were oil and gas concessions included?
A: These concessions were necessary to secure support from swing lawmakers, especially in energy-producing states, but they slow the fossil fuel phase-out.
Q: How will the bill affect everyday Americans?
A: Americans may benefit from reduced energy costs, new green jobs, and increased clean power options. Low-income and marginalized communities gain dedicated climate funding, though enforcement and reach vary by project.
Q: Is the bill enough to meet U.S. climate targets?
A: The IRA puts targets within reach, but further action is needed, especially for clean electricity standards, fossil fuel curbs, and climate adaptation.
Q: What comes next after the IRA?
A: Additional federal, state, and executive actions are needed to tighten regulations, invest in climate resilience, and encourage a comprehensive fossil fuel transition.
A Watershed for Climate—But the Journey Continues
No single bill can resolve the multifaceted climate crisis. The Inflation Reduction Act is a milestone—illustrating both the promise and perils of compromise in U.S. climate policy. By understanding what’s left out, activists, scientists, and citizens can push for stronger, more holistic solutions in the years ahead.
References
- https://en.wikipedia.org/wiki/Inflation_Reduction_Act
- https://bidenwhitehouse.archives.gov/climate/
- https://climatechangeresources.org/learn-more/federal-government/executive/bidens-climate-plan/
- https://www.wri.org/insights/biden-administration-tracking-climate-action-progress
- https://earthjustice.org/article/the-biggest-climate-spending-bill-ever-just-turned-two-heres-what-it-has-achieved
- https://www.epa.gov/green-power-markets/summary-inflation-reduction-act-provisions-related-renewable-energy
- https://www.americanprogress.org/article/the-biden-administration-has-taken-more-climate-action-than-any-other-in-history/
- https://www.whitehouse.gov/presidential-actions/2025/01/unleashing-american-energy/
Similar Articles
Read full bio of Sneha Tete
