The keys to Biden's 'IRA' that threatens green investments in the EU

What is called the 'IRA' of the United States?

The Inflation Reduction Act (IRA) was passed by the 117th United States Congress and signed into law by President Joe Biden on August 16, 2022. Among its objectives are: accelerating the energy transition, reducing health costs and, of course, curbing inflation by reducing the deficit.

How many millions of dollars will it mobilize?

The law intends to move a total of 739,000 million dollars and will spend 433,000 million, of which almost 400,000 million will go to energy security initiatives and climate change mitigation.. Approximately 370,000 million dollars will go to clean energy. This measure represents the largest investment to address climate change in US history.

What is the plan to accelerate the energy transition?

The tax facilities established by the law will catalyze investments to increase the production of clean electricity, since it is estimated that it will lead the United States to manufacture key components for the energy transition. In addition, it will accelerate the electrification of transport and commercialize cutting-edge technologies such as carbon capture and clean hydrogen..

How has the EU responded to Biden's plan?

The European response has been the Industrial Green Deal Plan, which was announced by President von der Leyen at the Davos Forum in January 2023.. The plan is built on four pillars: a predictable and simplified regulatory environment, accelerating access to finance, upskilling, and opening up trade for resilient supply chains.. In this way, the EU seeks to sharpen its competitive advantage through investment in clean technology.