Emissions Went Up, But There's Some Good News

credit: Ecotourism CA

Greenhouse gas emissions rose slightly in the US in 2022, going up by 1.3% from the year prior, according to a report from Rhodium Group.

While the data is only preliminary, this uptick in emissions shows that the US remains behind its target of reducing GHG emissions from 50% to 52% below 2005 levels by 2030 set by the Paris Agreement.

Last year, emissions reached only 15.5% below 2005 levels.

To meet the 2025 target of 26% to 28% below 2005 levels and get back on track for the 2030 Paris goal, the US needs to significantly increase its efforts.

Fortunately, there are some bright spots.

For one thing, despite last year's rise in emissions, GDP growth outpaced the increase in GHG emissions in 2022, as opposed to 2021.

Plus, the passage of the Inflation Reduction Act (IRA) is a significant turning point, and we may start to see its effects on emissions as early as this year if the government can fast-track implementation, with progress expected to accelerate by 2025.

Investors can help achieve this goal by targeting investments centered around decarbonization. Read the Entire Article

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