As the U.S. spends billions of dollars on energy subsidies, some allied nations are following suit, throwing money at the problem to compete.
A recent report in the Financial Times noted that there is a "global subsidy war" taking place. Last year's Inflation Reduction Act (IRA), part of President Joe Biden's agenda for transitioning to clean energy, included tax credits both for purchasing electric vehicles and for the production of renewable energy. But the vehicle credits only apply to cars assembled and sourced in North America, while the production credits offer a 10 percent bonus for domestic production. And the CHIPS Act of 2022 lavished wealthy companies with billions of dollars in federal subsidies to shore up semiconductor production.
