The U.S.'s Inflation Reduction Act and other initiatives have spurred massive green investments, outpacing the EU's efforts.China remains a dominant force in green technology investments, with the EU at risk of becoming overly reliant on Chinese advancements.The EU simply cannot seem to keep up with the U.S. when it comes to its green energy policy or China when it comes to green investment.
But when it comes to Europe’s efforts to develop far-reaching green policies, analysts believe its efforts have been limited due to a lack of cash and coordination. Johanna Lehne, an analyst at the climate thinktank E3G, “It’s very much the EU masquerading as if it is doing industrial policy.
So far, the EU has committed to making 40 percent of strategic net zero technologies within Europe by 2030. The European Commission has also asked member states to contribute an additional $10.9 billion to existing funds, to attract $174 billion in public and private investment to the sector. This is fairly low considering the U.S. forecast of $382 billion in federal spending alone under the IRA.