Europe Is Right To Worry About The U.S. Sucking Up Clean-Energy Capital Investment

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European Commission President Ursula Von Der Leyen expressed concerns Sunday that new incentives and subsidies for green energy contained in the IRA recently enacted in the U.S. are draining capital investment from Europe. Her concerns are well-grounded.

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Sen. Joe Manchin , Senate Majority Leader Charles Schumer , House Majority Whip James Clyburn , Rep. Frank Pallone and Rep. Kathy Catsor in the State Dining Room of the White House August 16, 2022 in Washington, DC. The $737 billion bill focuses on climate change, lower health care costs and creating clean energy jobs by enacting a 15% corporate minimum tax, a 1-percent fee on stock buybacks and enhancing IRS enforcement.

Von der Leyen’s statements came amid accusations from some European leaders that the new IRA measures put their continent at a competitive disadvantage for the attraction of new capital, and that the U.S. has been profiteering from the war on Ukraine being mounted by Russia.one unidentified European official as saying “The fact is, if you look at it soberly, the country that is most profiting from this war is the U.S.

A spokesperson for Biden’s National Security Council responded to that accusation by pointing out that “The rise in gas prices in Europe is caused by Putin’s invasion of Ukraine and Putin's energy war against Europe, period.” The charge that the U.S. is profiteering as a country related to exports of LNG into Europe or anywhere else is a bit of a fallacy, given that these sales are all market-based arrangements conducted by private companies....

the weekly cabinet meeting in the German Chancellery on May 3, 2017 in Berlin, Germany. Germany's minister von der Leyen cancelled a US trip scheduled for today to visit a military base following a scandal over a far-right soldier who allegedly plotted an attack while posing as a Syrian refugee. Indeed, the U.S. government has little, if any real authority to arbitrarily set prices under which such trades will be conducted. The market for exported LNG from the U.S.

 

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