US on Track to Surpass EU in Clean Energy Spending by 2030
Key Ideas
- Rystad Energy predicts the US will exceed EU's clean energy spending by 2030, driven by the Inflation Reduction Act.
- EU's Net-Zero Industry Act aims to boost clean technology, but challenges in hydrogen and CCUS infrastructure remain.
- Political shifts in the EU elections could impact climate change policies and energy transition goals.
- Despite ambitious targets, EU faces setbacks in meeting clean energy goals due to gaps in infrastructure and technology development.
The European Union (EU) is facing challenges in meeting its renewable energy, clean technology, and domestic supply chain investment targets according to Rystad Energy. While the EU invested USD 125 billion in clean technologies in 2023, it still lags behind China's spending. The Inflation Reduction Act in the US is expected to drive significant investments, allowing the US to surpass the EU in clean energy spending by 2030. The EU's Net-Zero Industry Act aims to reduce emissions significantly by 2040 and reach net zero by 2050, but hurdles in hydrogen and CCUS infrastructure persist. Political shifts in upcoming EU elections may impact climate change policies. Despite ambitious clean energy targets, the EU faces challenges in meeting goals due to technology and infrastructure gaps, risking falling behind global competitors.