Europe Reveals $272 Billion in Green Subsidies to Rival US

The EU this week unveiled plans for its “Green Deal,” a package designed to cut red tape and deliver tax breaks to companies adopting net-zero technologies. Europe’s plan comes in response to the Biden administration’s massive green subsidy program.
The proposals are still being hashed out by EU leaders, but they would provisionally allocate $272 billion of EU funds in tax incentives to businesses pursuing a green agenda.
Introducing the package, European Commission President Ursula von der Leyen said the bold plan is in direct response to America’s Inflation Reduction Act, which will channel $369 billion toward clean energy projects.
EU leaders are concerned that extensive tax breaks for American companies will hamstring European firms and cause them to consider moving to the US. EU officials have already made their displeasure known over the Inflation Reduction Act, criticizing the fact that the climate legislation is inward looking and does not encourage partnerships with European firms.
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Not content with only criticizing the US, the European Commission also took aim at China, saying it has provided green subsidies at a level twice as high as those in the EU, relative to GDP.

The Green Deal plans to enhance the competitiveness of Europe’s net-zero industry by simplifying regulation, accelerating access to finance, developing skills, and creating resilient supply chains through new trade deals, the European Commission said.