The Inflation Reduction Act: A spotlight on infrastructure

When we review the effects of the Inflation Reduction Act on the listed and private infrastructure asset classes, we find companies that are essential to accomplish the IRA’s dual mandates of decarbonization and energy security.  Across solar, wind, nuclear, transmission, battery storage, EV charging, and carbon capture, we see the potential for trillions of investment spend that should lead to rising cash flows for infrastructure companies and potential dividends for infrastructure investors.  Within this paper, we review the history behind the Inflation Reduction Act, the bill itself and consider the likely impact on sectors within private and listed infrastructure. The IRA improves upon a generational scale investment outlook, accelerating and elongating the infrastructure opportunity set.  As one of the world’s leaders in specialized real assets, CBRE Investment Management is excited by the outlook for global infrastructure investment.