The United States has committed to reduce its greenhouse gas emissions to 50-52% below 2005 levels by 2030 and to net-zero emissions by 2050. This is in line with the Paris Agreement goal of limiting global warming to no more than 1.5C. Multiple studies show that achieving these targets is technologically feasible and would have net direct costs of less than 1% of GDP (and possibly negative), not accounting for climate benefits or other externalities. Robust federal, state, and local policies would be needed to ensure that infrastructure to enable decarbonization is built at the required pace and scale. Simultaneous investments in adaptation and resilience infrastructure, including upgrading green and grey infrastructure, will be needed to adapt to the consequences of climate change that can no longer be avoided and increase economic and social resilience to more frequent or severe extreme weather events. These kinds of climate smart infrastructure – infrastructure required to support rapid decarbonization and withstand unavoidable climate change impacts – are expansive and varied. Infrastructure investments to enable decarbonization include renewable and other zero- or near-zero-emissions electricity generation; short- and long-duration energy storage; robust and flexible electricity transmission and distribution; charging and refueling infrastructure for zero-emission vehicles; and clean hydrogen and carbon dioxide capture, transportation and storage. Infrastructure investments in adaptation include supporting infrastructure for extreme heat, drought, and wildfire resilience; coastal and inland flood resilience; and public health resilience. Physically deploying this infrastructure depends on a significant investment focused on addressing the causes and impacts of climate change, as well as an intentional effort to adopt processes and practices at all levels of government to facilitate such large-scale infrastructure deployment and reconstruction. Shifting from a status quo to a transformational approach to infrastructure investment and deployment will be essential to addressing the climate crisis. It will also provide an opportunity to rethink how to design and implement infrastructure in a way that increases equity and delivers for the communities it serves.

This issue brief discusses existing energy injustice in the United States, related to longstanding and intersectional discrimination based on race, income, gender, and location, and how federal investment in the clean energy transition can address energy equity issues. The brief considers how targeted investment and other spending and policy considerations can direct and retain benefits of clean energy for households and communities that, historically and currently, have not benefited equitably from the energy system.

The report estimates the socioeconomic impact of federal climate policies under three mitigation scenarios. These mitigation scenarios focus on tax incentives, climate-friendly infrastructure investments, and sector-based performance standards—many of which have been enacted in the 2021 Bipartisan Infrastructure Law and the 2022 Inflation Reduction Act.