Clean energy incentives in the new spending package signed this week by US President Joe Biden will trim emissions of heat-trapping gases by about one billion metric tonnes by 2030, a Department of Energy analysis has shown.
The first official federal calculations, shared with the Associated Press before their release on Thursday, show that between the bill and last year's infrastructure spending law, by the end of the decade, the US will be producing about 1.15 billion metric tonnes less carbon pollution than it would have without the laws.
That is equivalent to about the annual greenhouse gas emissions of every home in the US.
The analysis found that with the new law, by 2030, US greenhouse gas emissions should be about 40 per cent lower than 2005 levels — which is still not at the announced target of cutting carbon pollution between 50 per cent and 52 per cent by the end of the decade.
But that 40 per cent reduction is similar to earlier calculations by the independent research firm Rhodium Group, which figured cuts would be 31 per cent to 44 per cent, and the scientists at Climate Action Tracker, which said the drop would be 26 per cent to 42 per cent.
Most of the projected emissions reductions in the nearly $375 billion spending package would come through promoting “clean energy”, mostly solar and wind power and electric vehicles, the federal analysis said.
More than half of the overall projected emission drops would come in how the nation generates electricity, the analysis said. About 10 per cent of the savings in emissions come from agriculture and land conservation.
The new law’s provisions that call for oil and gas leasing on federal land and water “may lead to some increase” in carbon pollution, the federal analysis said, but the other provisions to spur cleaner energy cut 35 tonnes of greenhouse gas for every new tonne of pollution from the increased oil and gas drilling.
Outside experts, such as Bill Hare of Climate Action Tracker, say the new law is a big step for the US, but it’s still not enough, considering that America, the biggest historic carbon polluter, had done little for decades and lags behind Europe.
“At this point, anything going in that direction you count as a win, right?” National Centre for Atmospheric Research climate scientist Gerald Meehl, who wasn’t part of the analysis, said about what the new law will do.
“I mean, after so long a time of total inaction and knowing how difficult politically it is to get the country moving in a direction like this due to politics and economics and all the other things involved with this issue.
“You can argue that’s not nearly enough, but I think once you start seeing motion, you hope that then we can build on that and kind of keep the ball rolling.”
Your favourite vegan celebrities — in pictures
Countries recognising Palestine
France, UK, Canada, Australia, Portugal, Belgium, Malta, Luxembourg, San Marino and Andorra
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
The biog
Name: Salem Alkarbi
Age: 32
Favourite Al Wasl player: Alexandre Oliveira
First started supporting Al Wasl: 7
Biggest rival: Al Nasr
Killing of Qassem Suleimani
How Beautiful this world is!
The Bio
Name: Lynn Davison
Profession: History teacher at Al Yasmina Academy, Abu Dhabi
Children: She has one son, Casey, 28
Hometown: Pontefract, West Yorkshire in the UK
Favourite book: The Alchemist by Paulo Coelho
Favourite Author: CJ Sansom
Favourite holiday destination: Bali
Favourite food: A Sunday roast
Mina Cup winners
Under 12 – Minerva Academy
Under 14 – Unam Pumas
Under 16 – Fursan Hispania
Under 18 – Madenat
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
The biog
Name: Dhabia Khalifa AlQubaisi
Age: 23
How she spends spare time: Playing with cats at the clinic and feeding them
Inspiration: My father. He’s a hard working man who has been through a lot to provide us with everything we need
Favourite book: Attitude, emotions and the psychology of cats by Dr Nicholes Dodman
Favourit film: 101 Dalmatians - it remind me of my childhood and began my love of dogs
Word of advice: By being patient, good things will come and by staying positive you’ll have the will to continue to love what you're doing
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