The European Commission should help member countries and European Union companies compete with the U.S. on green energy initiatives, European Commission President Ursula von der Leyen said Sunday.
"We are now confronted with an intensifying global clean tech race," Ms. Von der Leyen said in a speech at the College of Europe in Bruges, Belgium.
The United States' Inflation Reduction Act, with massive subsidies for clean energy, "should make us reflect on how we can improve our state-aid frameworks, and adapt them to a new global environment," she said.
The EU should overhaul public investment regulations and consider more funding at the EU level, while Europe needs to "work with the U.S. to mitigate competitive disadvantages," said Ms. Von der Leyen. The attractive investment environment for clean tech in the U.S. that was created by the Inflation Reduction Act is already redirecting investments from Europe's clean tech base and "we have all heard the stories of producers that are considering to relocate future investment from Europe to the U.S.," she said.
One topic for discussion at EU-U.S. Trade and Technology Council talks this week is expected to be how EU companies can also be eligible for the Inflation Reduction Act subsidies.