Contextualising the European response to the US IRA: The MUFG Global Markets Podcast

The European Commission recently unveiled its plan to address the fallout from the US’s Inflation Reduction Act (IRA) – the transformational USD369bn package of climate and energy spending. There has been a significant debate across the EU about the implications for European firms in terms of competitiveness and level playing field.

Ehsan Khoman, Head of Commodities, ESG and Emerging Markets Research (EMEA), believes that this could kickstart major EU/US cooperation, and launch a form of “Atlantic IRA” – given the EU aim to collaborate on its plan with the US (rather than working against it). According to Ehsan, the effect of policy will be to attract private capital and accelerate a clean energy capex supercycle this decade with rising investments in renewables and power grids across the EU and US.

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