The US’s flagship green technology legislation breaches global trade agreements, risks a global “race to the bottom” on clean energy incentives, and could lead to retaliation, Brussels has claimed.
In its first formal response on the Inflation Reduction Act, EU documents seen by the Financial Times state that the $369bn package of subsidies and tax credits for American producers and consumers contravenes World Trade Organization treaties that say countries such as the US cannot discriminate against imported products.
Officials in Brussels also believe the package, passed in August, could trigger retaliation from the EU and other US allies.
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