The Importance of Clean Economy Subsidies and Assessing Their Trade Risks

With the United States introducing significant clean economy subsidies, it’s evident that subsidies will be an important policy tool to support the transition to a clean energy economy. These green subsidies serve as vital financial incentives to foster the clean energy transition and sustainable growth.

Despite propelling the clean economy forward, subsidies are creating new international trade tensions. In response to the U.S. Inflation Reduction Act (IRA), other governments are looking to support the potential of clean energy and lower-emission goods through subsidies. Amidst a rapidly evolving environment, subsidies could leave some markets behind and, without coordination, potentially delay global climate goals.

Download this report to delve deeper into:

  • The pivotal role that subsidies will play in steering global decarbonization;
  • Trade dynamics emerging from subsidies in the IRA and Europe’s Green Deal Industrial Plan; and
  • How to mitigate the risk that trade tensions will hinder international collaboration for a global clean economy.

The insights in this report are those of Climate Advisers and may not necessarily represent the perspectives of all those associated with CCAT.