In Brussels on January 27, Poland's deputy climate minister expressed to Reuters that U.S. President Donald Trump's decision to temporarily halt spending from the nation's climate and infrastructure laws could be an opportunity for Europe to attract clean tech investments.
Trump recently announced a pause on funds from the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act, both initiatives introduced during the Biden era to promote spending and tax credits in clean industries. This pause is aimed at programs that deter fossil fuel development or support electric vehicles.
Krzysztof Bolesta, Poland's State Secretary for climate, stated, I think this is our moment. This is our window of opportunity, because many companies ... were complaining about the IRA. He added that companies had indicated they might shift investments to the U.S. to evade strict European regulations and benefit from IRA subsidies which were initially set to provide around $400 billion in support.
Bolesta remarked, Now I think the money will be harder to get in America, and we have our chance, so I just very much hope we will not blow it.
Although the extent of the impact of Trump's IRA order on funding remains unclear, the Biden administration had stated that most grants for clean energy programs had already been allocated through contracts approved during their term.
As the U.S. shifts its stance on clean industrial investments, Brussels is gearing up to unveil a new European Union industrial policy next month aimed at supporting industries in their transition to decarbonization.
EU officials hint that this "Clean Industrial Deal" package will include streamlined, expedited rules for state aid investments in industry and public procurement regulations favoring locally-produced versions of specific technologies.
Bolesta stressed the importance of simplifying intricate EU regulations, notably the impending carbon border tariff (CBAM) set to impose CO2 emission costs on imports starting in 2026. He noted, Because we see when working on the implementation that it could create a lot of red tape, especially for smaller companies.