The United States will become the world leader in the energy transition. US Secretary of Energy Jennifer Granholm makes that promise.
In her view, President Joe Biden’s administration has created “the most attractive investment landscape for new energy and low-carbon technologies.”
The US is allocating hundreds of billions of dollars, including grants, loans and tax breaks, to drive the energy transition in the country. That money goes, for example, to climate-friendly transport and technological developments in the context of sustainability. This makes the US “irresistible” to investors and foreign companies, argues Granholm.
However, she acknowledges that the European Union is less happy with the policy. “Let’s say the corporations love it, big government doesn’t,” said Granholm. According to the EU, the so-called Inflation Reduction Act (IRA), which lays down many benefits for companies, would give US industry an unfair competitive advantage.
In response to the IRA, EU leaders decided last month to temporarily relax European state aid rules for investments in renewable energy and decarbonising the industry, among other things.
Granholm calls on countries worldwide to “stimulate clean energy production in your country as well”. She welcomed the competitive battle between the EU and the US because “a little friendly competition” can ultimately make the economy greener. “We will continue to work with our allies,” Granholm said, adding that she does not want to fuel trade wars.