U.S. Clean Energy Plans Spur Global Subsidy Race Concerns
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U.S. clean energy spending is spurring other countries, especially in Europe, to propose their own investment plans to try to compete. This has set off concerns of a global subsidy race.
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Companies that make prized clean energy products like batteries and semiconductors can now "country shop", playing governments against each other to find the most incentives.
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The U.S. and Europe are clashing over a proposal to allow labor inspections, complicating negotiations over a minerals agreement.
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Besides Europe's Green Deal plan, other countries like Japan, South Korea, and China have introduced new subsidies and incentives around chips, solar, EVs to defend market share.
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Some experts say fears of a subsidy race are overblown, but business leaders say U.S. policies came at a sensitive time amid higher energy prices and economic uncertainty in Europe.