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OMB: Inflation Reduction Act Could Cut Climate-Related Social Costs by up to $1.9T by 2050

1 min read

An analysis by the Office of Management and Budget has found that the Inflation Reduction Act could result in climate-related social benefits that will range between $700 billion and $1.9 trillion through 2050.

The law could mitigate the “social costs” of climate change and could lead to climate-related benefits, such as cutting costs related to rising temperatures, reducing expensive property damage from natural disasters and sea level rise and avoiding negative health impacts, according to the OMB analysis.

The study also shows the federal government could spend up to $128 billion on an annual basis on just six financial risks linked to climate change: crop insurance, disaster relief, flood insurance, health care expenditures, flood risk at federal facilities and wildland fire suppression spending.

According to the report, the law will not only address the climate crisis but also help improve the country’s fiscal health in the long term.

“In the long-term, the Inflation Reduction Act will help avoid significant expenditures that the Federal government might otherwise expect to spend on programs like crop insurance, health insurance, and fire suppression due to climate change,” the analysis reads.

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