Responding to the U.S. Inflation Reduction Act and EU Green Deal Industrial Plan: Climate Policy Initiatives
- Author Shin, Dong Won
- Researchers Kim, Eunsung;Kim, Lee Jin;Kim, Sungjin;Lee, Hakyung;Lee, Jeongeun;Lee, Mina
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Date
2023-12-31
Ⅰ. Introduction
1. Background and aims of research
o The U.S. and EU have been promoting legislation to support their domestic environmentally friendly industries and technologies to achieve carbon neutrality.
ㅇFinancial support from the government, such as subsidies and tax deductions, plays a crucial role in promoting new industries within the country.
-The United States has enacted the Inflation Reduction Act(IRA), allocating a budget of $369 billion to address energy security and climate change, and this includes expanding financial support, such as tax deductions, for investments in related industries to enhance clean energy supply capabilities.
- The EU aims to procure a minimum of 40% of the annual demand for carbon-neutral technologies by 2030 through its Green Deal Industrial Plan and Carbon Neutrality Industrial Law. To achieve this, they provide subsidies for the expansion of manufacturing capabilities in key carbon-neutral technologies and support improvements in regulatory environments.
- France offers tax deductions related to green industries and streamlines the permit process for constructing new factories through its Green Industry Law.
- Japan has introduced the Green Transformation Promotion Strategy, proposing measures such as ensuring a stable energy supply and implementing a carbon pricing system.
oGiven the changing global regulatory environment, characterized by competitive dynamics in emerging carbon-neutral technologies and new industrial policies, there is a need to strategize domestic responses to climate change.
ㅇThis study conducts an in-depth
1. Background and aims of research
o The U.S. and EU have been promoting legislation to support their domestic environmentally friendly industries and technologies to achieve carbon neutrality.
ㅇFinancial support from the government, such as subsidies and tax deductions, plays a crucial role in promoting new industries within the country.
-The United States has enacted the Inflation Reduction Act(IRA), allocating a budget of $369 billion to address energy security and climate change, and this includes expanding financial support, such as tax deductions, for investments in related industries to enhance clean energy supply capabilities.
- The EU aims to procure a minimum of 40% of the annual demand for carbon-neutral technologies by 2030 through its Green Deal Industrial Plan and Carbon Neutrality Industrial Law. To achieve this, they provide subsidies for the expansion of manufacturing capabilities in key carbon-neutral technologies and support improvements in regulatory environments.
- France offers tax deductions related to green industries and streamlines the permit process for constructing new factories through its Green Industry Law.
- Japan has introduced the Green Transformation Promotion Strategy, proposing measures such as ensuring a stable energy supply and implementing a carbon pricing system.
oGiven the changing global regulatory environment, characterized by competitive dynamics in emerging carbon-neutral technologies and new industrial policies, there is a need to strategize domestic responses to climate change.
ㅇThis study conducts an in-depth