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THE RESURGENCE OF US INDUSTRIAL POLICY AND EUROPE’S RESPONSE
Article published in La Revue de l’Énergie, n°666 mai-juin 2023
Recommended citation
Defard C. 2023. “The Resurgence of US industrial policy and Europe’s response“, La Revue de l’Énergie, n°666 mai-juin.
Introduction
As the result of a government-led industrial policy, China currently dominates most cleantech value chains around the world. This raises many questions about the security of supply of the components, materials and equipment needed for clean technologies. In the United States, the Inflation Reduction Act (IRA) adopted in 2022 aims to trigger a reorganisation of value chains in order to boost America’s cleantech sector. It also signals the return of US industrial policy. With one of the most ambitious climate regulatory frameworks in the world, the EU is well-positioned to take advantage of this new industrial revolution. However, the IRA represents a serious threat due to its magnitude, simplicity and long-term reach.
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