Analysts See Muted IRA Effect On Europe As Advocates Seek Trade Truce

March 1, 2023
Energy analysts are downplaying the substantive threats that the Inflation Reduction Act’s (IRA) domestic manufacturing incentives pose to European industries, arguing that the scope of the trans-Atlantic trade split related to clean energy will not be as large as some officials fear. “We find that while the IRA includes meaningful new incentives for the U.S. clean energy industry, the share of IRA spending that supports U.S. manufacturing directly at the expense of European industry is considerably lower than recent reporting...

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