This acronym is probably the most cited at the World Economic Forum in Davos, at least by European and American participants.
It refers to the Inflation Reduction Act, a plan voted last summer by the United States Congress providing massive support for the energy transition, through 369 billion dollars in subsidies.
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In Davos, the Europeans, commissioners and ministers, debate their counter-offensive in preparation, in the face of what they consider to be unfair competition, likely to suck up investments in electric cars or renewables in America.
The well-stocked American delegation, made up of big bosses, ministers, parliamentarians and even governors, supports the IRA with pride.
The IRA will allow the United States to lead the energy transition and create well-paid and qualified jobs
”, supports the Minister of Labor of Joe Biden, Martin Walsh, who came from the union milieu.
But when he is asked about possible adjustments or concessions which could be discussed with the Europeans, the minister kicks in touch: the subject does not fall within his competence and he has not been briefed by the White House, recognizes -he.
“A real power of transformation” of the economy
We rightly criticized the Americans for not doing anything against climate change, now they are getting into it
,” comments a big French boss.
They are not doing it against Europe but for themselves
, he believes.
Vicki Hollub is one of those industrialists across the Atlantic who welcome the federal support program.
She is CEO of Occidental Petroleum and has committed her oil company to the energy transition.
The IRA will subsidize lithium batteries and carbon capture and storage
We plan to capture 100 million tonnes of CO2 by 2035, and the IRA will help us do that
,” explains the boss.
I say thank you Manchin!
The Democratic Senator from West Virginia, Joe Manchin, carried the text of the IRA, he who a few months earlier was hostile to subsidies on solar panels.
The conversion of this elected official from a state dependent on coal was decisive.
Joe Manchin is also in Davos where he emphasizes that “
the IRA helps us to consolidate our energy independence
The IRA has a real power of transformation
" of the economy, supports for his part Larry Fink, the boss of Blackrock, the largest asset manager in the world.
around the world are looking to the United States
A high-level working group was set up at the end of last year for the two sides of the Atlantic to discuss.
But the Davos Forum allows informal exchanges between stakeholders, anxious to make their point of view heard.
Joe Biden's representative for trade, Katherine Tai, is expected to meet a number of European ministers and high-level officials including Commission Vice-President Valdis Dombrovskis or Christine Lagarde, the President of the ECB, at a dinner on Wednesday .