As 2024 comes to a close, Ohio finds itself at the intersection of two transformational national policy trends: the Inflation Reduction Act (IRA) and the Environmental, Social, and Governance (ESG) debates. These issues have influenced the state’s policy, investment, and public discourse landscapes, presenting both possibilities and difficulties.
Ohio has seen significant advantages from the IRA’s emphasis on renewable energy and efficiency programs. In 2023, the state received more than $249 million for home energy upgrades through programs including the High-Efficiency Electric Home Rebate Act (HEEHRA). The funding has enabled thousands of Ohio homeowners to install energy-efficient technologies, lowering electricity bills and carbon footprints.
Businesses, as well, have welcomed the IRA incentives, with manufacturers increasing production of renewable energy components. Ohio’s robust manufacturing sector is well-positioned to benefit from the growing demand for solar panels, wind turbines, and electric car batteries. These accomplishments highlight the IRA’s potential to boost Ohio’s economy while also tackling climate issues.
While the IRA provided a green boost, the ESG conversation took a more contentious turn in Ohio. With the passage of Senate Bill 6, the state prohibited its public entities from considering ESG factors in investment decisions. Advocates of the bill argued that prioritizing financial returns aligns with fiduciary responsibilities, while critics countered that excluding ESG considerations ignores long-term risks like climate change and social instability.
Ohio’s divergent trajectories on the IRA and ESG issues highlight broader national tensions. On one hand, the IRA’s investments are fostering a cleaner, more sustainable future; on the other, the state’s ESG restrictions could limit its ability to proactively manage environmental and social risks.
As the year draws to a close, Ohio serves as a microcosm of the national climate and economic policy debate—a state dealing with how to effectively integrate sustainability into its economic framework while tackling the pressing challenges of the 21st century.
Looking ahead to 2025, the challenge for Ohio will be to strike a balance between leveraging federal support for clean energy and maintaining its economic competitiveness while navigating divisive ESG debates. For residents, 2024 demonstrated the power of federal policy to catalyze change at the local level and the importance of remaining engaged in policy discussions that shape the state’s future.
Public Notice: OSBC remains committed to helping businesses through its informative workshops and networking events to foster cooperation for collective success. We invite public input on how Ohio state policymakers can effectively balance economic growth with environmental sustainability, ensuring a prosperous and sustainable future for all. The impact stories of businesses in Ohio driving sustainability efforts can be shared with Mayda Sanchez Shingler at mayda@osbcouncil.org or Daniel Awomnab at daniel.awomnab@osbcouncil.org.
About the Author: Daniel Awomnab is a social innovator with a multidisciplinary background in economics, public policy, and communication. As Communications Director at the Ohio Sustainable Business Council (OSBC), he leverages his interdisciplinary knowledge and passion for social innovation to tackle complex challenges, promoting sustainable development and aligning economic growth with environmental resilience.
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