Exam ESG-Investing Topic 3 Question 516 Discussion

Actual exam question for CFA Institute's ESG-Investing exam
Question #: 516
Topic #: 3
Which of the following sectors receives the highest investment from the Inflation Reduction Act of 2022 (IRA)?

Suggested Answer: A Vote an answer

The Inflation Reduction Act (IRA) of 2022 is the largest U.S. investment in climate action, focusing on clean energy incentives, tax credits, and subsidies.
Why A (Clean energies) is correct:
The IRA allocates $369 billion toward energy security and climate change initiatives, with the majority going to clean energy technologies such as:
Renewable energy (solar, wind, geothermal)
Energy storage systems
Hydrogen energy and biofuels
Why not B or C?
B (Clean transport) receives significant investment (EV tax credits, charging infrastructure) but is not the largest category.
C (Clean electricity) benefits indirectly, but the IRA prioritizes energy sources rather than distribution.
References:
U.S. Department of Energy: IRA Funding Breakdown (2023)
Congressional Budget Office: Economic Impact of the Inflation Reduction Act (2022)

by Verna at Jun 21, 2026, 10:16 PM

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