My latest in @nytopinion: @EmmanuelMacron & other EU leaders have used inflammatory rhetoric to criticize 3 aspects of US energy & climate policy over profiteering from Ukraine & #IRA. These criticisms are largely baseless & risk unity in battling both Russia & climate change 🧵
Some in Europe accuse US LNG companies of “profiteering.” This is a misconception. Markets set prices, and the companies benefiting most right now are non-US LNG resellers. Plus US LNG flexibility has been crucial to helping Europe pivot away from Russia.
eia.gov/todayinenergy/…
EU also criticizes #IRA for large clean energy incentives, warning of a subsidy race. It's understandable Europe is worried about deindustrialization. But the culprit is Europe’s lack of competitiveness wo cheap Russian gas, not America’s new climate law. ft.com/content/75ed44…
After yrs of criticizing US for being a laggard on climate, it's puzzling to see EU attack US for investing TOO MUCH in clean energy. #IRA can begin a cycle of competition in clean energy tech that accelerates decarbonization rather than spur protectionist policies that retard it
EU officials are right to raise concerns about protectionist elements of the #IRA. Industrial policy is back in vogue. And China’s own protectionism and use of its industries for geopolitical influence have made Western governments rethink unchecked free trade.
Yet deft diplomacy & careful implementation can create more opportunities than risks for Trans-Atlantic cooperation. A collaborative approach is vital to accelerate climate action, enhance energy security and help Europe cope with its energy crisis. END reuters.com/markets/us/bid…
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