Inflation Reduction Act includes over $5 billion for low carbon procurement

The Inflation Reduction Act of 2022, recently passed by the U.S. Senate, sets aside over $5 billion for low carbon procurement in the built environment.

The policies in the bill aim to drive aggressive emissions reductions by 2030 within the building sector by incentivizing the use of low-carbon, clean materials for public infrastructure projects. Direct investments and tax credits will facilitate deep industrial decarbonization, with the potential to reduce over 200 million metric tons of carbon dioxide emissions annually by 2030.

Provisions in the bill include:

$250 million for Environmental Product Declarations Assistance to support the development and standardization of EPDs for construction materials with grants and technical assistance to manufacturers.
$100 million for Low-Embodied Carbon Labeling for Construction Materials to identify and label low-carbon materials and products for federally funded transportation and building projects.
$2.15 billion for Use of Low-Carbon Buildings to specify and install low-embodied carbon materials and products for use in General Services Administration-owned buildings.
$2 billion for Low-Carbon Transportation Grants that reimburse and incentivize the use of low-carbon materials and products for Federal Highway Administration projects.
$4 billion for Improving Climate Resilience of Affordable Housing for funding to improve energy or water efficiency, indoor air quality and/or sustainability of projects, and implement low-carbon technologies, materials, and products to improve climate resiliency in affordable housing.
FEMA Building Materials Program providing financial assistance for the use of low-carbon materials and incentives that encourage low-carbon and net-zero energy projects.

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