The effort to halt rising global temperatures was boosted in the last two weeks, as both the US and Australia passed climate acts that will see emissions reduced.

The US bill, curiously name the Inflation Reduction Act, aims to reduce carbon emissions by 40% on 2005 levels by 2030.

Australia last week passed the Climate Bill, which legally commits the country to reducing greenhouse gas (GHG) emissions by 43% on 2005 levels by 2030 and a reduction to net zero by 2050.

Both represent significant turning points in climate policy. In the case of Australia, the legislation commits future governments to action and accountability on climate, although some question if it goes far enough.

As the US is the second-largest GHG emitter after China, this is a key development and commitment.

$369bn plan

The US climate bill commits $369bn in energy security and climate change programmess over the next 10 years.

It has been heralded as the largest single investment that the US has made to halt global warming. The investment will be made over 10 years as subsidies to incentivise consumers towards electric vehicles and utilities companies towards green energy such as wind and solar.

Tax credits have been put in place to speed up the production of clean energy technology, including solar panels, wind turbines, batteries, heat pumps, electric vehicles and critical mineral processing.

A fund has been established to support disadvantaged communities affected by climate change and funding for the establishment of a green bank to drive investment in clean energy projects, particularly in disadvantaged areas.

Australian legislation

In contrast, Australia has put in place the necessary legislation, but critics point to the lack of an identified plan and corresponding funding.

In comparison to Irish legislation, the Australian 2030 target is a floor and not a ceiling.

While the bill does not provide a roadmap to cutting emissions, it is seen as symbolically important in demonstrating the new government’s commitment to addressing climate change.

Among other things, the bill compels certain government agencies to take account of the targets in their work – Australian Energy Agency, Clean Energy Finance Corporation and Infrastructure Australia.

Concessions to fossil fuels are problematic

In both countries, concessions to fossil fuels have been criticised as being problematic. In Australia, it is proving contentious that policy will not stop the development of new coal mines and gas fields.

Australia is one of the world’s largest exporters of liquefied natural gas and the second-biggest exporter of coal - worth in excess of AUS$150bn.

In the US, concessions will allow for new oil and gas exploration licences, which is problematic for many.

Analysts commend the extent of funding committed under this legislation, noting however that legislators have failed to put in place a carbon tax, which is the basis of all environmental economics.

For now, it’s all carrot and no stick in the US.