EU Continues to Press Biden Administration on IRA Implementation
The top trade official in the EU, Valdis Dombrovskis, said that he would talk about the changes they want to the Inflation Reduction Act during his planned meeting with U.S. Trade Representative Katherine Tai on Jan. 17. He said there have been improvements on how the tax credits for electrical vehicles will be applied, but said, "We're continuing to work on supplies and inputs into batteries and how to make some progress there," as well as other areas.
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After meeting with finance ministers from across the EU, Dombrovskis said that the IRA had generated a lot of debate in Europe. "We have raised our concerns about the effects of the Inflation Reduction Act on EU companies, and risks of relocation," he said, and reiterated that he would talk about it with Tai, searching for a "practical solution."
Dombrovskis acknowledged the competitive disadvantage European clean tech firms may face is not solely due to the generous U.S. subsidies for production in the U.S. He noted that high energy prices in Europe are also a challenge.
EU President Ursula von der Leyen, speaking at the Davos World Economic Forum in Switzerland on Jan. 17, said that Europe would be launching its own subsidy program for critical mineral production and other clean tech development. Reports from that speech said she said, "We should work towards ensuring that our respective incentive programmes are fair and mutually reinforcing. And we should set out how we can jointly benefit from this massive investment, for example by creating economies of scale across the Atlantic or setting common standards."