EU doubles down on green ambition
In response to the US Inflation Reduction Act, the bloc is making its own protectionist moves
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MORE than half a year after its passage, the US Inflation Reduction Act (IRA) increasingly looks like a game-changer for the country’s green economy – and may arguably have as profound an impact in Europe too.
When the IRA was passed, the US$369 billion programme of green subsidies was warmly welcomed by key European stakeholders, including European Commission President Ursula von der Leyen. Yet as the measure’s protectionist implications have become clearer, it has sent shockwaves across the continent.
Recent studies, including by the McKinsey Global Institute, highlight that while the European Union (EU) holds strong positions in certain green sectors, it risks being outpaced in other areas, including clean technology.
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