US President Joe Biden and European Union (EU) leader Ursula von der Leyen have launched talks aimed at resolving a rift over electric vehicle (EV) subsidies. The discussions come after the EU announced plans to phase out support for petrol and diesel cars by 2035, and the US proposed a new tax credit for EVs as part of its infrastructure bill.
The dispute centers on the different approaches taken by the US and the EU in supporting the transition to EVs. In the US, tax credits have been a key driver of EV adoption, while in Europe, subsidies for charging infrastructure and other measures have played a greater role.
Speaking ahead of the talks, von der Leyen stressed the importance of working together to boost the clean tech industry, and achieve a circular economy and a net-zero economy. “It is important on both sides of the Atlantic to know what kind of incentives are being given to the clean tech industry, to make sure that we join forces to boost the clean tech industry,” she said.
The talks are expected to focus on issues such as how to avoid overlapping subsidies, and how to ensure that support for the clean tech industry is consistent with World Trade Organization rules. The EU has previously criticized the US tax credit for EVs, arguing that it unfairly benefits American companies.
However, both sides have also stressed the need for cooperation and collaboration on clean tech issues, given the urgent need to address climate change. Biden has made climate action a key priority of his administration, and has proposed a $2 trillion infrastructure plan that includes significant investments in EVs and charging infrastructure.
Meanwhile, the EU has set ambitious climate targets, including a goal of reducing greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels. Achieving these targets will require significant investments in clean tech, including EVs, renewable energy, and energy efficiency measures.
The talks between the US and EU leaders are a promising step towards resolving the differences in approach to supporting the clean tech industry. By working together, the two sides can help to create a more level playing field for clean tech companies, and accelerate the transition to a low-carbon economy.
