Carol Ryan of The Wall Street Journal reports on Europe’s green industrial policy.
- The European Union has launched its Green Industrial Plan which provides generous tax breaks to European-made green energy technologies.
- The launch of this plan is partially a response to the provisions of the Inflation Reduction Act that prioritize American manufacturing and industry.
- While American manufacturing and industry are important, the sector’s growth should come as a result of free trade, open markets, and work with allies.
- Protectionist policies could lead to a green trade war that would hurt consumers and the planet.
“Coming up with a clear-cut response to American largesse is tricky for the EU as it involves negotiations between 27 member states. Also, Europe is ahead of the U.S. in some elements of its shift to clean energy. Excluding hybrids, electric vehicles accounted for 12% of new passenger vehicles sold in the EU last year, versus 5.8% in the U.S.“
Read the full article here.