ESG Series: Further guidance into Europe’s response to the US Inflation Reduction Act – The MUFG Global Markets Podcast

On 5 May, the German government presented draft legislation that appears to be the first granular direction into the European response to the US Inflation Reduction Act (IRA) (the largest climate legislation in US history) at the national level that compliments the European Commission’s Net Zero Industry Act (NZIA) unveiled on 16 March. If approved, this German proposal may serve as an IRA template for other European member states, fast-tracking renewables as well as green financing to lower the cost of capital.

Ehsan Khoman, Head of Commodities, ESG and Emerging Markets Research (EMEA), discusses why this promising German proposal may serve as a template for other European member states to follow suit, which reinforces the conviction that the current goldilocks era of regulation will carve the contours of a renewables capex supercycle (see here for the full report).

 

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