Federal Economics Minister Robert Habeck and his French counterpart Bruno Le Maire see “substantial progress” with the US Subsidy Act IRA. The Americans are less euphoric.
According to Federal Minister for Economic Affairs and Energy Robert Habeck, the US government has promised “full transparency” in the amount of subsidies and tax benefits in the dispute over subsidies for green technologies. The United States would disclose “how the various subsidy systems work and how the amounts should be roughly calculated,” said the Green politician at a press conference with French Economics and Finance Minister Bruno Le Maire in the US capital Washington.
Le Maire even spoke of “substantial progress”. Both sides agreed that the EU should also be better off with the specifications for critical raw materials for certain products. “Now is the time to make decisions.”
Yellen cautious
Le Maire and Federal Economics Minister Robert Habeck had on Tuesday on the so-called Inflation Reduction Act (IRA) – a 370 billion US Treasury Secretary Janet Yellen and Secretary of Commerce Gina Raimondo were hit with a subsidy package worth several dollars.
US Secretary of the Treasury Janet Yellen
US Treasury Secretary Yellen's comments following the talks with Habeck and Le Maire were much more reserved. She highlighted the need to “stimulate innovation and technological development and application on both sides of the Atlantic to accelerate the green energy transition and achieve our shared climate goals.” Her ministry did not provide any further information on the content of the talks.
Europeans fear disadvantages from the IRA
The background to the current talks is the concern of the Europeans that the US regulations will bring disadvantages for European companies. In some cases, tax advantages are only granted if, for example, electric cars are manufactured in North America. As already known, however, there should be exceptions, at least for leasing models, which could help European producers. Washington also ties subsidies to the fact that batteries, for example, are manufactured in North America.
Both sides have agreed that as many products from Europe as possible should benefit from new US subsidies for renewable energy, Le Maire said. This includes electric vehicles, batteries and rare earths. The USA and the European Union have a common goal: “The fight against climate change.”
Germans Car manufacturers – here a test model from Mercedes-Benz – hope that they can also play a bigger role with electric cars in the USA.
Habeck added that the ultimate goal was “to create a common market for green industrial goods.” In addition, the dependence on important raw materials must be reduced and supply chains must be diversified.
Wind turbines, solar cells, batteries, electric cars
The EU Commission is primarily focused on manufacturers of wind turbines, Solar cells, batteries, e-cars and from the hydrogen industry. The International Energy Agency estimates that the global market for clean energy solutions will triple to around $650 billion by 2030. The number of jobs in this area should more than double.
Habeck announced that a joint working group under the umbrella of the European-American Trade and Technology Council should try to reduce the joint dependence on important raw materials from other regions of the world to reduce. The council with top representatives from the USA and the EU is looking for solutions in dealing with the IRA.
mak/bru (dpa, rtr, afp)