Investment Shortfall Threatens Europe’s Green Transition

An advisor to President Biden has called on the UK and Europe to increase their investment in green technology, following the success of the US’s Inflation Reduction Act (IRA). Heather Boushey, a member of the White House Council of Economic Advisers, urged governments worldwide to follow the US’s lead in providing public funding for decarbonisation and green energy, which has encouraged private companies to invest heavily in related technologies. The IRA provides $369bn for clean energy and low-carbon technology funds. However, the UK’s Labour Party recently abandoned its pledge to spend £33.3bn ($45.4bn) a year on green jobs and industry, while the EU has been warned it may fail to meet its 2030 climate targets due to insufficient financing.