In a radio interview with the Austrian public broadcaster’s “Europa Journal” on Ö1, Nils Redeker explains how the EU can react to the American Inflation Reduction Act.
With the Inflation Reduction Act (IRA), the US opened over 400 billion dollars in investment opportunities into the green transition. Although this programme is likely to have a large impact on climate policy in the US and has “the potential to really bring down American emissions”, many in Europe are concerned about its implications for European competitiveness.
In this interview, Deputy Director Nils Redeker discusses where the US climate subsidies pose a challenge for Europe, why the first set of EU responses is “unlikely to make a difference” and what needs to be done to react to the subsidy splash across the Atlantic. It is time to decide whether to finance common EU industrial policies and how to ensure that targeted industrial policy measures in the EU can occur without harming the internal market, Redeker argues.
Listen to the full interview (in German) here.