In The Media

EU green spending puts pressure on UK to act (Investor's Chronicle)

Published 14 February 2023

The European Commission has outlined its response to the US Inflation Reduction Act. The European Commission’s (EC) new Green Deal Industrial Plan includes proposals to ease state aid rules to make subsidies more freely available to entice green technology firms to the bloc. The move, seen as a direct response to the US Inflation Reduction Act, which last year promised billions of dollars in grants and loans to fund new clean energy projects, risks placing the UK’s nascent green technology firms at a competitive disadvantage to its peers, according to analysts. Michael Gasiorek comments on the risk of “competitive protectionist subsidy policies by country, which are ultimately going to be welfare-decreasing” and how the subsidies affect the UK.