Accelerating Towards Net Zero: IRA Incentives Offer Companies a Fast Track for Fleet Electrification
The Inflation Reduction Act (IRA) is the most significant climate victory for sustainable investment in U.S. history. The provisions of the IRA will pave the way towards a net zero future by ensuring that we reach a 42% reduction in greenhouse gas emissions by 2030. Now, the private sector needs to follow up with bold action.
EDF’s Inflation Reduction Act Hub
Our Fleet Electrification Activation Guide is a new resource designed to help the ground transportation industry transition their fleets to electric vehicles. By taking advantage of key IRA incentives, businesses can lead the way in reducing industry emissions. It is also a critical tool for policymakers and stakeholders to encourage fleet electrification and help companies achieve their net zero goals.
The Guide addresses common concerns that businesses may have about the cost of initial investment in electric vehicles, practicality, and process or supply line changes. It also helps companies navigate a variety of IRA incentives, from tax credits and grants to rebates, that offset the costs of fleet electrification. For example, IRA Provisions 45W and 30C offer up to $40,000 for commercial clean vehicles and up to $100,000 for alternative fueling properties.
The Guide also discusses policies that bolster the business case for clean commercial vehicles, such as the CHIPS Act and additional funding under the Clean Ports and Clean Heavy-Duty Vehicle program for Class 6 and 7 vehicles. Businesses have more reasons than ever to implement solutions for reducing air pollution caused by their operations, especially around warehouses that place an uneven burden on areas of low wealth and communities of color.
EDF Helps Companies Electrify Fleets
IRA has already spurred over 100,000 new jobs across various carbon-intensive sectors. Professional training to support this workforce is crucial to the speed and scale at which those sectors can decarbonize. EDFs’ Climate Corps Fellowship Program is a unique avenue through which we actively engage fleets under the Zero-Emissions Vehicle (ZEV) cohort. EDF experts train graduate fellows to jumpstart and strengthen transportation decarbonization initiatives at host companies. Working with Iron Mountain, fellows developed a roadmap for the company’s global fleet electrification efforts which helped shape their target of converting “100% of company cars and 50% of vans to EVs by 2030”.
EDF has a long history of working directly with companies to decarbonize global transportation. In partnership with other NGO partners, EDF manages the Electric Fleet Readiness Group – a cohort of Medium and Heavy-duty fleets at the forefront of the electric truck transition. The group provides a platform for industry leaders to collaborate with other first movers and has enabled fleets to learn from each other. Members are working to accomplish four things:
- Advance zero-emission vehicle deployments within member fleets.
- Collect critical insights and learnings these leaders are gaining through deployments and share them with fleets at earlier stages of their electrification journey.
- Inform the design of public policies that will influence the pace and success of electrification in the trucking industry.
- Influence market offerings for heavy-duty electric trucks and supporting equipment.
With opportunities and policies lining up to help companies transition, it’s time to act imminently and leverage all available IRA provisions. This may be the best chance yet for businesses to embark upon their net zero journeys and futureproof their investments from the risks of climate change.