You might remember the Inflation Reduction Act. The federal government went all in on carbon emissions, with doubled tax credits for building retrofits. Or, as the Environmental Protection Agency put it, "The Inflation Reduction Act of 2022 (IRA) is the most significant climate legislation in U.S. history, offering funding, programs, and incentives to accelerate the transition to a clean energy economy."

Who knew that it would send the EU reaching for the nearest bottle of antacids?

EU commission vice-president Margrethe Vestager told the Financial Times that the IRA had a "toxic" effect on some European industries. The worry is that the plentiful programs of the US could do one of two things: either give US companies a financial advantage over their European counterparts or lure EU-based corporations to the US.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.