Monday, May 29, 2023

United States: Climate plan subsidies finally extended to electric vehicles in other countries

This should reassure the EU. The latter has consistently warned the United States of the consequences of President Biden’s massive climate plan (IRA), which was voted on last year. It offers an envelope of $430 billion – a set of subsidies – to support the sale of US electric cars. In October 2022, the head of French diplomacy, Catherine Colonna, was genuinely concerned that France and the United States were no longer “on an equal footing” with this plan. Emmanuel Macron then warned about these subsidies qualified “extremely aggressive” at the commercial level, while ensuring that it ” share[air] Target “, The President felt that the IRA had taken a risk “Breaking the West”,

“Joe Biden’s Climate Plan (IRA) Could Be a Growth Lever for Vinci” (Xavier Hullard, CEO)

But, on Friday, changes to the conditions for allocating the subsidy were later unified to allow the 7,500 euro to be allocated to US motorists even if they buy an electric car partially produced abroad. Initially, the plan won with great backlash, especially after difficult negotiations with Democratic Senator from West Virginia (East) Joe Manchin, in fact, a major portion of the vehicles and batteries were to come from South America. Answer. But the terms published by the Treasury Department, which will go into effect in April, finally open up the sourcing of both the vehicle and critical materials needed for the battery or batteries.

Significant Material Agreements Involved

More specifically, these terms, the final verification, concern, beyond the United States, the states bound by the Free Trade Agreement have been put forward for consultation. “a term that includes recent agreements relating to significant material”Treasury said in a statement. In all, 21 countries are concerned, including Japan, which on Monday signed an agreement relating to the fine. “Supply Chain of Critical Minerals and Batteries for Electric Vehicles”, If not yet on the list, the EU hopes to sign a similar agreement soon, with negotiations officially starting during European Commission President Ursula von der Leyen’s visit to Washington on March 10.

5 business news to remember this Thursday morning (water planning, energy, business building, critical stuff, unpaid invoices)

A development in the American discourse that was welcomed by the European Commissioner, Margrethe Vestager, who is currently in the US capital. Asked by AFP, the European Commission estimated on Friday “the circumstances confirmed the pragmatic approach chosen” and said now focus “Quickly finalize an agreement on critical minerals [s’]Make sure the EU was treated in the same way as other close partners” United States. the day before, she reminded the press that she was “It would be difficult to fight global warming if we didn’t have zero carbon industries everywhere” And not only in the United States. “What we’re trying to avoid is that the acceleration that we want to deliver in Europe is potentially not stopped by what the United States wants to experience”she insisted.

Chinese companies as seen “suspicious entities”

On the other hand, the conditions for allotment of subsidy clearly specify that they are to be excluded, as provided at the time of passing of the law, “suspicious entities”, By this term, the United States refers exclusively to Chinese companies. , Given China’s dominant position in the clean energy value chain, we need to work with our allies and partners to build a strong supply chain that can meet the expectations of American consumers. “, a Treasury official underlined during a telephone exchange. The idea is in line with the position defended by the European Commission, which has called for the approach to be broadened beyond G7 countries and to countries that produce critical material , which currently exports mainly to China. These materials contain nickel or cobalt, which are used in the manufacture of batteries.

However, this extension of terms did not satisfy everyone, starting with Senator Manchin, who did not hide his anger. He speculated in a press release on Friday that he “were completely unaware of the aims of the IRA”Was ” to bring industries back to the United States and [leurs] Make sure we have a secure and robust supply chain”, , American public money should not be used to support industrial jobs overseas. The consultation period is open and I invite every American to speak. My advice is simple: stop it, respect the law “, He added.

(with AFP)