What Is the Inflation Reduction Act?

In August 2022, President Biden passed the Inflation Reduction Act(IRA); a revamp of the President’s failed Build Back Better plan. The Inflation Reduction Act focuses on reimagining the economic incentives that corporations have followed to the publics detriment in the past. It aims to incentivize companies to invest in domestic energy production and promote clean, eco-friendly energy in communities that have historically been negatively and disproportionately impacted the most. As the Biden administration seeks to right the wrongs of the past, we at the Green Door are asking ourselves "what does a new green economy look like in Detroit and for other urban communities, and how can we take advantage of the this newfound opportunity?"

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The Inflation Reduction Act creates a path for underserved communities who have not traditionally been able to access resources at the federal level. The current Biden administration has investigated and recognized that there is a barrier that exists between people in certain underserved areas of the country and that they are going to work from a federal point of view to rectify that disparity. The Inflation Reduction Act says that we understand the plight of people in communities that are impacted disproportionately in terms of environmental justice, and that we are seeking to aid under represented neighborhoods across America. Many of the communities that are impacted most from environmental imbalances are the communities who face reverberated consequences stemming from these affects, and the communities that are negatively affected by unjust corporate greed and practice should have a say in what a solution looks like for them. 

“The people who live in the neighborhoods that are negatively impacted the most have the answers, but they are rarely give access to the resources that they need; much less able to acquire them. Often times we are competing with for-profit corporations that have easy access to mass capital, and employ incentives that bolster their bottom line” said CEO & Founder of the Green Door Initiative Donele Wilkins.

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What Does Change Look Like?

Resources aren’t limited to money. Often, the organizations who have the most say are in the most advantageous positions because they have people who advocate on their behalf, create proposals, lobby, and fund our elected officials. On the flip side, those who stand to be impacted the most are not represented or given a seat at the table for this discussion to voice their opinions. Every now and then small changes occur, but largely the status-quo remains the same because the economic incentives are ripe for corporations advocating for negative environmental impact, and beneficial for their bottom line. The Inflation Reduction Act sets their sights on this injustice and set a place at the proverbial table for those of us on the ground level.

Traditionally all of the incentives for large companies who worked in environmentally-adjacent industries have had massive negative impacts on the global environment. We see this all around us with the climate change, greenhouse gas emissions reaching new highs in recent years, habitat destruction, city-wide water contamination, food insecurity, and high levels of air pollution. 

Click here to see how the Green Door Initiative is fighting against Air Pollution

But this time in order even for those who traditionally have access to the major sources of capital and resources from the federal government to gain it, they must partner with organizations like the Green Door Initiative as a partner. Environmental justice groups have to be in the lead as a requirement for the new funding proposals. This is a huge change from the existing state of affairs and sets a great precedent for the future of our planet. 

New Green Future

So with that being said, the Inflation Reduction Act has brought about trillions of dollars and all kinds of tracks like environmental and economic incentives for addressing environmental and climate issues that are disproportionately burdening communities like ours. The Inflation Reduction Act re-incentivizes good behavior instead of predatory behavior. It is now up to us to decide what that future will look like and how we can make the most of our newfound, green energy. 

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View the Celebration of the one year anniversary of the Inflation Reduction Act with the Green Door Initiative Founder Donele Wilkins, U.S. Congress Woman Rashida Tlaib, and Detroit Mayor Mike Duggan hosted at the Tech Hub in the Green Door Initiative Facility in Detroit, MI.