Industry: Europe’s response to the • Table.Briefings

In great haste, the EU Commission has drawn up a package around the Net-Zero Industrial Act. From the point of view of the industries concerned, the proposals are a step in the right direction. But they do not see it as a genuine European response to the US Inflation Reduction Act.

In December, the heads of state and government had instructed the EU Commission to hurriedly come up with a response to the Inflation Reduction Act. The Biden administration’s subsidy program for climate-friendly industries, combined with high energy prices, had stoked fears among policymakers that Europe could lose out on the expected boom in green industries. Moreover, in the wake of Russia’s attack on Ukraine, there has been a heightened awareness of the vulnerabilities inherent in dependencies on geopolitical rivals such as China in key sectors such as solar, wind, and energy storage.

Industry: Europe’s response to the IRA falls short

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