The United States has entered the clean-energy race in a big way with the Inflation Reduction Act (IRA) of 2022. Not only will the law subsidise US renewable-energy producers and consumers to the tune of US$369 billion (13 trillion baht) over 10 years; it also authorises the Department of Energy (DOE) to lend up to $250 billion to US companies that are investing in the clean energy transition. Between the IRA and the recent $52 billion package to boost US semiconductor production, it is clear that industrial policy is back in vogue in Washington, DC.
To be sure, these figures might sound modest. According to Bloomberg, global investments in the energy transition topped $750 billion last year, with China alone spending $266 billion, compared to $47 billion in Germany and $114 billion in the US. And McKinsey & Company offers an even more generous accounting, putting total current investments in clean energy and its supporting infrastructure at $2 trillion.
