A U.S. senator in the 1930s talking about politics liked to say "If you can't beat them, join them".
That might be a useful approach for European executives to take with the Inflation Reduction Act (IRA) and the Bipartisan Infrastructure Law (BIL) passed by the U.S. Congress and signed into law by President Biden last year. Since the law was passed there has been a great deal of discussion about how the EU should respond, whether these are protective measures, and whether this would lead to a war on trade and industrial policy. There has also been a series of announcements of new investments and more than 100,000 new green jobs.
We recommend that European companies and their executives focus at least a good portion of their attention on the opportunities to boost exports to the U.S through some key provisions in the IRA, which includes $369 billion in incentives for a range of sustainable measures.
European companies looking to boost their export of environmentally sustainable solutions to the US can take advantage of several initiatives within the Inflation Reduction Act of 2022. Here are a few specific ways they can benefit:
1. Grants to Reduce Air Pollution at Ports program: This program provides rebates and grants to eligible recipients to purchase or install zero-emission port equipment or technology. European companies that provide these types of solutions can apply for these grants and increase their exports to the US.
2. Climate Pollution Reduction Grants program: This program provides grants to eligible entities to develop and implement plans to reduce greenhouse gas air pollution. European companies that provide greenhouse gas reduction solutions, such as renewable energy technologies, can apply for these grants and receive funding to expand their exports to the US.
3. Greenhouse Gas Reduction Fund: This fund provides grants and loans to programs that provide financial support to low and zero carbon technologies. European companies that develop and provide such technologies can apply for this funding and receive financial support to increase their exports to the US.
4. Energy Infrastructure Reinvestment Financing program: The Department of Energy's loan program within the IRA provides loan guarantees for projects to retool, repower, repurpose, or replace energy infrastructure. European companies that provide these types of solutions can apply for these loan guarantees and receive financing to expand their exports to the US.
By taking advantage of these initiatives, European companies can increase their exports of environmentally sustainable solutions to the US and help support the country's efforts to reduce emissions and invest in clean energy.