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The Guardian - UK
The Guardian - UK
Business
Alex Lawson Energy correspondent

EU plans to loosen state aid rules to boost renewables investment

Workers install Europe’s largest floating solar farm on a dam in Moura, Portugal, last year.
Workers install Europe’s largest floating solar farm on a dam in Moura, Portugal, last year. Photograph: Pedro Nunes/Reuters

The EU is stepping up its green subsidy race with the US through plans to loosen state aid rules on tax credits for renewable energy projects.

European policymakers have been under pressure to respond to the US president Joe Biden’s $369bn (£298bn) Inflation Reduction Act, which aims to encourage renewables investment in everything from electric cars to wind turbines.

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