Valerie Mmanthe Mampshika, [Bachelor of Arts in Psychology and English].
Renewable energy is energy derived from natural sources that are replenished at a higher rate than they are consumed.
European electric cars, batteries and renewable energy products should be accessible to the market in the United States of America (USA) like Canada and Mexico,the EU officials reported.
In the US they have signed a $430 billion anti-inflation bill into law 3 months ago which includes the state aid to boost US manufacturing and incentives for consumers to buy American products such as cars and renewable energy sources.
The EU has the belief that the bill risks unfair discrimination towards its own products and a joint EU-US Task Force to solve the obstacle has been put in place, resulting in a meeting which will take place later this week.
The purpose of the meeting is to discuss how US needs to be on the same level of derogation discovered in Canada and Mexico in a realistic manner which is the starting point in the negotiations.
Valdis Dombrovskis, the EU Commissioner who is accountable for Trade purposes, added that it appears as if bountiful green subsidies provided for in the Act may disfavour EU automotive, renewables, battery and energy-intensive industries.
Dombrovskis also mentioned that he had conversed with other states that have similar concerns,namely Japan and South Korea, and that they are also many alternative ways to approach the issue in the best way possible.
The French President Emmanuel Macron who is currently serving his second term championed a “Buy European Act like the Americans” to safeguard European manufacturers at all costs.China and the US protect their manufacturing industry, and Europe is an open house,Macron added.
European manufacturers are being hit hard by energy prices, which have rocketed in recent months as a result of Russia’s illegal war against Ukraine and Moscow’s decision to stop delivering gas to the bloc (a group of countries or political parties with common interests who have formed an alliance) in retaliation for wide-ranging sanctions.
Fluctuation of prices in the Euro area is expected to have jumped 10.7% annually in October which is the highest level ever recorded in the 19-country zone which has been fuelled by energy prices which have escalated by more than 41% since October 2021.