EU-US Clean Tech Meeting in Bucharest

In a recent meeting of Central and Eastern European energy ministers held in Bucharest, the European Energy Commissioner Kadri Simson and US Energy Secretary Jennifer Granholm aimed to maintain a cordial relationship despite underlying tensions regarding clean technology competition. The European Commission has previously criticized the US Inflation Reduction Act (IRA) for its protectionist elements, but both sides have since sought to address their differences. Simson expressed her appreciation for the ongoing collaboration, highlighting the importance of unity during challenging times. Granholm emphasized the IRA's benefits for international partners, noting that over half of the clean energy manufacturing investments in the US from 2021 to 2023 involved foreign companies or joint ventures. This statement aimed to reassure European allies about the potential for mutual growth in the clean energy sector, despite concerns over competitive practices. Meanwhile, the European Commission's proposal for a 'Sovereignty Fund' to bolster industrial ambitions faced resistance from EU member states, leading to uncertainty about the future of the Net-Zero Industry Act. Experts warn that without adequate funding, the EU's clean energy manufacturing goals may falter. In response, Simson has proposed a 'Clean Industrial Pact' to be initiated within her first 100 days if re-elected, although the source of funding remains unclear. As both leaders approach potential transitions in their roles, with Simson not being renominated and a new US administration on the horizon, the future of EU-US clean energy cooperation hangs in the balance. The upcoming US presidential elections could significantly influence the trajectory of this partnership, particularly if a more protectionist stance emerges.