It dominated the headlines at Davos this week, suggesting Diplomatic complaints from Germany have thrown European lawmakers into trouble. A historic U.S. climate bill passed last year ushered in a new era of geopolitics, an unprecedented global competition to develop technologies to save the planet.
U.S. tops this list Greenhouse gases that have accumulated since the Industrial Revolution have added to the atmosphere but are still lagging behind in reducing reliance on the fossil fuels that warm the planet. President Joe Biden’s Lower Inflation Act, which became law last summer, despite its name, is designed to quickly change the status of laggards.
However, the size of the U.S. economy and the unprecedented scale of subsidies provided by the IRA to develop green industries have forced European lawmakers responded as companies warned the continent could lose investment.
As the U.S. figures slowly emerge, officials from European Commission President Ursula von der Leyen to the leaders of France and Germany have called for a Europe-wide and country-specific industrial bill to match the pending stance of its biggest ally. incentives.
“In order to remain attractive for European industry, it needs to be competitive in terms of offers and incentives,” von der Leyen said in a speech in Davos. “We must also increase EU funding.”