EU Trade Hawks Warn That US Climate Law May Cost Europe Billions
- Bloc’s internal market authority assessed impact of US law
- EU’s von der Leyen to meet Biden this week to discuss the IRA
The Volkswagen AG headquarters and auto plant complex in Wolfsburg, Germany. Europe’s top car producer VW warned in December that soaring energy costs are making battery-cell production “practically unviable” and that investment will go elsewhere.
Photographer: Krisztian Bocsi/BloombergOne of the European Union’s strongest critics of a massive US climate law is warning that Washington’s subsidies and China’s policies are drawing billions of dollars of clean-tech investments away from the bloc.
The EU’s internal market authority said that the American law will build a “new industrial ecosystem” and poses a danger to Europe’s competitiveness — and identifies more than $25 billion of company spending heading to the US and China — in its initial assessment of the law seen by Bloomberg.