A year after it was passed, the U.S. Inflation Reduction Act, President Joe Biden’s effort to expedite the green revolution, is reshaping economies everywhere, none more so than Canada’s. And not necessarily for the better.
The act made hundreds of billions of dollars available for energy security and to address climate change. The effects were virtually immediate.
Attracted by the American gusher of tax credits and other freebies, foreign companies are racing to set up energy-transition projects in the U.S. Norwegian battery maker Freyr is building a US$1.7-billion gigafactory in Georgia; Italian utility Enel is rolling out a pan-American network of fast chargers for electric vehicles.
The European Union, fearing that Mr. Biden’s signature economic policy will tilt transatlantic trade and investment flows in America’s favour, has committed to an “ambitious European industrial policy” to ensure it is not a bystander to the green and digital transformation.
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