Green Tech Incentives Drive Global Race for Solutions to Save the Planet

The Race to Save the Planet Accelerates with Incentives for Green Technology Development

The passing of the historic US climate bill last year has caused quite the stir in the world of geopolitics. It has been a dominant topic in the headlines coming out of Davos this week and has even prompted diplomatic complaints from Germany. European lawmakers are now in a difficult position as a result of this bill, which has opened up a new era of global competition to develop technologies that will help save our planet.

The United States has historically been a major contributor to the cumulative amount of greenhouse gases added to the atmosphere since the industrial revolution. Despite being a major contributor, the US has been lagging behind in reducing its reliance on fossil fuels that are contributing to the heating of our planet. President Joe Biden’s Inflation Reduction Act, which became law last summer, aims to change that status and make the US a leader in the fight against climate change.

The sheer size of the US economy and the massive subsidies offered by the IRA to develop green industries is putting pressure on European lawmakers to respond. Businesses have warned that Europe could lose significant investments if they do not take steps to match the incentives being offered by their closest ally.

As the reality of the US’s efforts to combat climate change sets in, officials from the European Commission President Ursula von der Leyen to the leaders of France and Germany have called for Europe-wide and country-specific industrial bills aimed at matching the incentives being offered by the US. Von der Leyen emphasized in her speech at Davos that “to keep European industry attractive, there is a need to be competitive with offers and incentives.” She also stressed the importance of increasing EU funding to support these efforts.

The passing of the US climate bill has sparked a new era of global competition in the development of planet-saving technologies and has put pressure on European lawmakers to take action. It remains to be seen what steps Europe will take to match the incentives being offered by the US, but it is clear that this issue is not going away any time soon.