"What I hear from a lot of European companies and I hear from European governments as well, is look, the United States is pushing us. We need to get our act together. We want to see rapid deployment of clean technologies in Europe. That's in the world's interest. And that's why we're in dialogue on things like trying to land a critical minerals agreement."
"What this legislation is intending to do is to ensure that the United States keeps its commitment on climate. And it'll have a very substantial benefit to the global economy. Make no mistake about it. The investments in the United States, driving down the price, will help economies globally deploy at scale"
John Podesta
Head of Clean-Energy Provisions
Inflation Reduction Act
[The Inflation Reduction Act] will create trade tension. It is already creating trade tension. We know that nobody can develop on its own. And we need this balance between openness and national development. So it's a very uncharted waters. It could be very dangerous. We are exactly in the format of the 1914s, more protectionism, more tension, more investment in military. That's not bode well. I think this obsession, we have to reduce dependence on China, again, can be understood but cannot be an objective in itself. Sometime nationalism is blurring the rational thinking.
We can't keep the 1.5 objective of global-warming temperature as a limit if we don't do technological co-operation. We need Chinese capacity. If we operate in a very fluid economic environment without this trade tension, we will achieve the climate goal
more quickly."
Laurence Tubiana
President and CEO European Climate Foundation
Our view
The Inflation Reduction Act has increased tensions between the US, China and Europe and that's because the US is playing catchup. However, China is still the dominant force in renewable energy manufacturing. China is still the main producer of batteries and solar and China still controls almost all of the key components for the batteries including the lithium processing and the chips that are used in solar panels. And that's what the Inflation Reduction Act was specifically set up to do. To challenge this."
This is a 9-part Series. The next part will be on 'China remains the factory of the world'.
For the full video from Financial Times REPORT
Here's our other post of the Inflation Reduction Act.