US President Joe Biden (pictured) has signed into law a bill that includes US$700 billion of measures to tackle climate change and cut healthcare costs.

The new legislation aims to reduce the country’s carbon emissions by around 40% by 2030.

The Inflation Reduction Act contains almost $370 billion of measures linked to climate change – including tax credits and rebates to encourage consumers to buy more efficient appliances and electric cars.

There are also commitments to invest in solar and wind energy, battery plants, and forests.

Drug costs reduced

Biden described the bill as “the biggest step forward on climate ever” in the US.

On healthcare, the new law allows the US’s Medicare scheme for older people to negotiate prescription drug costs.

The White House says that around 50 million Americans will also have their prescription costs capped at $2,000 a year.

Biden pointed out that “every single Republican in Congress” voted against the bill.

Republican Senate leader Mitch McConnell said that the legislation would mean “higher taxes, higher energy bills, and aggressive IRS [tax] audits".