Read CBI Europe's December update on the European response to US green subsidies, what the Swedish Presidency of the Council will look like, and the EU carbon levy.
The EU considers a European response to US green subsidies
Following the announcement of the landmark US federal legislation, the Inflation Reduction Act (IRA), which will direct new federal spending toward green technologies, for the purpose of attracting foreign investments and increasing domestic industrial capacity, the European Union has been considering its response.
Whilst the EU has welcomed US efforts to lower energy costs, decarbonise all sectors of the American economy and curb US greenhouse gas emissions, the European Commission has argued that the IRA contains provisions with discriminatory domestic content requirements, which are in breach of WTO rules. Moreover, there are fears that the measures will attract investment towards the US, and away from Europe, as well as giving US businesses an unfair competitive advantage.
Nevertheless, EU leaders remain divided over what the best course of action for Europe is; French President Emmanuel Macron is calling for a “Made in Europe” industrial plan to ensure the com
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