OPINION: Go big or go home: Canada will need to match U.S. EV subsidies to stay in the game – by Konrad Yakabuski (Globe and Mail – January 25, 2023)


U.S. climate envoy John Kerry does not have much sympathy for other countries complaining about the massive subsidies President Joe Biden’s administration is offering to electric-vehicle and battery-component makers, as Washington seeks to break China’s dominance of the global EV supply chain.

“The reaction shouldn’t be ‘Oh my God, you shouldn’t be doing that, you’re putting us in an unfair position,’” Mr. Kerry said last week at the World Economic Forum in Davos, Switzerland. “Do it! Everybody’s got to do the same thing to accelerate this process even more.”

His comments served as a warning to European and Canadian policy makers scrambling to keep up after Congress’s adoption last year of the Inflation Reduction Act, or IRA, dramatically ratcheted up EV incentives.

The U.S.-led subsidy war leaves other countries with the unpalatable choice of either outbidding Washington to lure EV and battery makers, or forgoing billions of dollars in investments and thousands of jobs.

For the rest of this article: https://www.theglobeandmail.com/business/commentary/article-go-big-or-go-home-canada-will-need-to-match-us-ev-subsidies-to-stay-in/