John Podesta Says Irking European Allies Over Biden's Tax-and-Climate Spending Law Was Worth It
Key Highlights :
The Inflation Reduction Act and its $370 billion in clean energy tax credits have caused a bit of a stir among America’s closest economic partners. But White House senior adviser on clean energy John Podesta said Wednesday it was worth irking European allies over President Biden’s tax-and-climate spending law because it motivated other nations to more aggressively lean into the green energy transition.
At a Brookings Institution event on the law’s implementation, Mr. Podesta said, “Like, yeah, there’s a certain amount of bitching. But I think in reality, what it’s done is spurred action.” He cited the European Union’s Green Deal Industrial Plan, unveiled earlier this year, as an example of the action that has been spurred. The plan was designed to counter U.S. subsidies and promote clean energy in Europe, and Mr. Podesta argued that it “wouldn’t happen without the inflation Reduction Act passing.”
The Inflation Reduction Act provides incentives for domestic manufacturing for things like electric vehicles and other climate-friendly energy technologies. The law also includes a $370 billion investment in clean energy tax credits. Mr. Podesta said these incentives have been worth the backlash from the European allies, noting that “with the bitching comes a little bit more shoulder to the wheel. That’s a good thing.”
The Biden administration has long been focused on transitioning to a green economy, and the Inflation Reduction Act is just one of the many steps they’ve taken to move the needle in that direction. With the law in place, other countries are being encouraged to follow suit and invest in clean energy technologies. This is a positive step forward in the fight against climate change, and Mr. Podesta believes it was worth the consequences of irking European allies.
