Davis Polk counsel and Environmental practice head Loyti Cheng was quoted in Agenda on the potential effects of the Inflation Reduction Act. Loyti said, “The IRA will most likely drive more corporate investments in clean energy, not only due to the extensive tax credits and investments which will be provided, but also because it reduces uncertainty regarding renewal of clean energy tax credits.”

“Boards should definitely be talking to management about potential transition opportunities in clean energy as well as shareholder expectations in light of the incentives provided by the IRA,” Loyti continued. “The IRA has the potential to embolden shareholders to submit more proposals regarding a company’s sourcing of clean energy or investing in or transitioning to clean energy, and a public company should be prepared to address those shareholder proposals.”

“Historic Law Could Help Companies Hit Climate Targets” Agenda (August 19, 2022) (subscription required)

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