Biden open to minor changes, not revamp, of climate subsidies Macron opposes
TL/DR –
President Joe Biden has stated he will consider changes to his climate policy to assuage concerns from European allies, particularly France, about the incentives designed to boost U.S. manufacturing of electric vehicles and other green technology. However, he insisted that the main principles of the law will remain unchanged. French President Emmanuel Macron had criticised the US Inflation Reduction Act, arguing that it gives American companies an unjust global advantage in the emerging green energy sector.
Biden Set to ‘Tweak’ Climate Policy Following European Concerns
During a recent meeting with French President Emmanuel Macron at the White House, President Joe Biden revealed willingness to make adjustments to his key climate strategy. This comes in response to European objections to incentives promoting US production of electric vehicles and other green technologies.
However, Biden emphasized that the main elements of the policy will be preserved. “The U.S. makes no apology. And I make no apology since I wrote the legislation,” Biden stated.
Macron criticised Biden’s Inflation Reduction Act, arguing it gives US companies an undue advantage in the growing green energy industry. Macron and Biden had a detailed discussion about the policy.
Inflation Reduction Act and Global Trade Concerns
The Inflation Reduction Act, passed this year, allocates a record $369 billion for addressing climate change. It includes extensive incentives for US companies to manufacture electric vehicles, solar panels, batteries, and wind turbines domestically.
France and other EU countries have expressed worries that these US-focused policies may cut European companies out of the green energy market, potentially leading to a trade war if the EU retaliates with similar measures.
While acknowledging potential ‘glitches’ due to the act’s scope, Biden expressed openness to exemptions for European companies, stating that the policy was ‘never intended to exclude’ them.
Macron Encourages Collaboration
Through a translator, Macron confirmed his agreement with Biden to ‘re-synchronize our approaches’ in the investment into emerging industries like semiconductors, hydrogen, and batteries. He also warned that the ‘super aggressive’ subsidies could disrupt European projects and ‘fragment the West.’
Despite the disagreements, Macron emphasized that the two nations have ‘no alternative but to work together’ in addressing climate change. Seeking a common strategy, he stressed that ‘we can’t ask the United States of America to adopt whatever rules would be necessary to deal with all the issues in Europe. But we need to have the same ambition.’
Impact of the Inflation Reduction Act
The Inflation Reduction Act is one of Biden’s most consequential legislative achievements, introducing unprecedented climate spending. The president is committed to creating new jobs through the swift transition to electric vehicles and clean energy, despite European objections.
Macron accomplished his objective of getting Biden to publicly express openness to adjustments, allowing European companies to compete for energy subsidies.
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