Less than three years later, the superpower withdrew from the Paris Agreement against changing of the climate and then-U.S. President Donald Trump celebrated ushering in a new era of American energy dominance thanks to the U.S. hydrocarbon and shale revolution.

Europeans then accused Washington of its negative attitude towards international efforts to combat climate change. However, since then President Biden turned the picture around by passing groundbreaking climate legislation in the so-called “Biden Package” or IRA Act, which provides $369 billion in subsidies and tax credits for green energy technologies. And while these policies make the US an irresistibly attractive place to invest, the Europeans are worried but planning bold programs and are hampered by controversy over the issue. According to the organization climate forcewhich lobbies for environmentally sound policies, since the passage of the IRA last year, the US has already invested $90 billion in clean energy and green technology projects in general.

Talking about this to Financial Times, David Skasbrook, general manager of Quinbrook Infrastructure Partners, emphasizes that “today, the US is the number one country in the world in terms of opportunity, fastest growth, and most productive market for renewable energy investment.” He even suggests that “it will last quite a while.” According to Swiss bank Credit Suisse, IRA investments could eventually reach $800 billion or even $1.7 trillion. dollars after private sector funds are included as loans and guarantees.

In addition, research and consulting group Wood Mackenzie predicts that thanks to the “Biden package” and its tax credits, investment in energy storage will more than triple by the end of the decade, approaching $16 billion. It is also estimated that by the end of the decade, the US will account for 13% of lithium battery production.

The Biden administration’s initiative has alarmed Europeans, with the French president Emmanuel Macron to warn that the IRA would “tear the West apart” and Commission President Ursula von der Leyen to sound the alarm that it constitutes “unfair competition” and creates “closed markets”.

At the same time, however, the conservative European People’s Party characterizes the reaction of the European Commission to the “Biden package” and the president’s proposals for further softening of state aid rules as insufficient. The Commission is specifically proposing a temporary relaxation of rules until the end of 2025 when it comes to investments in renewable energy or carbon removal technologies.

IRA investments could reach $800 billion or even $1.7 trillion. dollars after private sector funds are raised.

Given that not all member countries have the same opportunities to support their industries, he proposed to initially use the 225 billion euros remaining from the 800 billion euros of the Pandemic Recovery Fund.

At the same time, it is planned to allocate 250 billion euros from the EU program for the same purposes. against the energy crisis to encourage industry to reduce emissions. Understandably, the issue of funding remains a hot one and has already caused friction long before specific proposals have been presented, as some countries have pointed to the risk of widening inequalities between EU countries.

Germany and France will be able to allocate large funds to strengthen their industry, unlike countries such as Greece or the Balkan countries. It is significant that of the 672 billion euros of state aid approved by the Commission for Economic Recovery after the Pandemic, 53% went to Germany and 24% to France. And, of course, it makes no sense to finance a package equivalent to the “Biden package” through a new issue of general debt.

At the same time, however, huge suitcase-sized batteries based on zinc, an alternative and much cheaper raw material for lithium, are being manufactured and assembled in Pennsylvania, USA, and are expected to provide hospitals with affordable and non-flammable energy. schools and other carriers. At the same time, investment in lithium-ion energy storage technologies that will power the new U.S. electric vehicle fleet is flowing from Ohio to Georgia. Meanwhile, China, the world leader in energy transition, invested $546 billion in such projects last year alone, according to Bloomberg NEF estimates.