ESG Series: The EU’s response to the US Inflation Reduction Act (IRA) – Scaling the “Atlantic IRAs” renewables capex supercycle: The Global Markets Podcast

The US Inflation Reduction Act (IRA) – a USD369bn legislative package combining large-scale green subsidies with healthcare savings and new revenue measures through to 2032 – is a landmark and welcome US climate policy, that enacts historic deficit reduction to combat inflation. In a clear threat to Europe through its competitiveness effect, the European Commission has presented its response – a detailed piece of legislation labelled the Green Deal Industrial Plan of which the Net Zero Industry Act (NZIA) is the central initiative.

Ehsan Khoman, Head of Commodities, ESG and Emerging Markets Research (EMEA), discusses MUFG’s latest ESG report that examines Europe’s response to the transformational US Inflation Reduction Act and why he believes this goldilocks era of regulation will carve the contours of a renewables capex supercycle (see here for the full report).

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