Support for US climate action softened even before landmark Inflation Reduction Act

Amidst growing economic uncertainty, climate change legislation seems to be less of a priority, according to Deloitte’s Global Sustainability survey

Support for US climate action softened even before landmark Inflation Reduction Act

by

Derek Pankratz
David R. Novak

In August 2022, the US government passed the most expansive climate legislation in the country’s history. The Inflation Reduction Act includes approximately US$370 billion for addressing climate change, spanning clean energy, transportation, and a host of other areas.¹

But according to Deloitte’s survey data, that’s yet to translate into greater backing for government climate action. Indeed, Americans’ support for government-led efforts to combat climate change seems to be softening. Over the past year, we have seen a reduction in the percentage of respondents who said they support new climate regulation, that the national government should do more to address climate change, and that they’re factoring a candidate’s views on climate change into their voting decisions.

Growing economic uncertainty, rising inflation, and increasing energy costs may explain some of the erosion in support for government climate action. In Deloitte’s survey, respondents who said their personal financial situation was worse than a year ago were less likely to support new climate regulations than those who said their finances had improved. This might suggest that many Americans continue to see climate action as a costly burden—one they are less willing to bear as economic uncertainty mounts.

There is an opportunity for government and business leaders to shift public perceptions about the near- and long-term impacts of addressing climate change. The US Office of Management and Budget estimates the bill could reduce annual expenditures on energy by 4% by 2030, with US households, businesses, and industry saving nearly US$50 billion. Those same savings would double by 2035.²

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Moreover, Deloitte’s economic modeling shows that rapid decarbonization could yield an economic benefit of US$3 trillion by 2070 and be a net creator of jobs.³ The Inflation Reduction Act and other legislation could direct billions to local communities in the coming months and years.

As climate action unfolds in the public and private sector, leaders should look for ways to communicate how the transition benefits a range of stakeholders. Changing the narrative around climate action—from one of cost and hardship to one of opportunity and prosperity—can help build the durable, broad-based support needed for a rapid transition to a low-emissions future. The coming years provide a fertile opportunity to illustrate the opportunities of a green economy.

Matteo Wong, “The climate movement wanted more than the IRA. Now what?,” Atlantic, September 28, 2022.
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Jesse D. Jenkins, The Inflation Reduction Act and the path to a net-zero America, Princeton University Zero Lab, September 12, 2022.
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Pradeep Philip, Claire Ibrahim, and Cedric Hodges, The turning point: A new economic climate in the United States, Deloitte, May 2022.
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The authors would like to thank Nirmal Kujur for his help developing this article.

Cover image by: Sofia Sergi

Sustainability, Climate & Equity

Deloitte’s Sustainability, Climate & Equity practice offers end-to-end capabilities and scale—through our data, insights, innovative technology, and global collaborations—to support clients balancing what’s good and equitable for people, planet, and prosperity. Regardless of where organizations are in their sustainability journey, we have proven experience to deliver impact in strategy, operations, reporting, and finance that inspire and cultivate a prosperous and sustainable future. Additionally, Deloitte does more than just advise and transform—through our internal commitments to reducing emissions, increasing diversity in our workforce, and enhancing the learning and development practices of our over 300,000 professionals, we strive to be part of the solution.