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In an effort to bring some clarity to the evolving landscape of industrial policy going into 2023, we dedicate this instalment of FSR Debates to what is happening in the US and EU.

There has been much consternation in Europe about the US Inflation Reduction Act (IRA) and the impact it could have on the competitiveness of European industry. The European Commission is responding with its own measures, including revised State Aid Guidance to allow Member States to match the subsidies of third countries. These exchanges come in the midst of an energy crisis which has hit energy-intensive industries in energy import-dependent regions especially hard, Europe has seen a major reduction in industrial output over the past year as a result.

As emissions targets squeeze and technological cycles close, industry are taking their next investment decisions, looking at where the strongest case is to establish the next generation of industrial value chains. Clean energy vectors such as renewable hydrogen will be amongst the key components for the buildout of these economies, and as such, their cost-effectiveness and availability will contribute to the decision-making of industrial players.

 “We are not exaggerating when we say that European industry — starting with the energy-intensive industries on the frontline — is facing an existential crisis.” (Luc Triangle, IndustriALL)

To open the session, Laima Eicke will cover the factors for success in different segments of industrial value chains based on her recent paper published with Nicola de Blasio. She will detail different classifications of countries based on their assets and limitations, as well as providing some case study examples – including Germany, the US, and Thailand. In the second part of the debate, the floor will be opened for debate amongst our panelists, covering expertise from around the world, with a focus on Europe and the US. The last minutes will be left for Q&A from the audience.

Programme

Introduction and moderation

Ilaria Conti | FSR

Keynote presentation

Laima Eicke | IASS, Harvard

Discussants

Michael Mehling | MIT, University of Strathclyde Law School

Matthew Bravante | BNEF

Laima Eicke | IASS, Harvard

Ruud Kempener | European Commission

Andris Piebalgs | FSR

Conclusions

Christopher Jones | FSR

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Venue
online
Coordinator
Ghazi Mabrouk

Speakers

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Andris Piebalgs
FSR
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Laima Eicke
IASS, Harvard
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Michael Mehling
MIT, University of Strathclyde Law School
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Matthew Bravante
BNEF
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Ruud Kempener
European Commission
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Christopher Jones
FSR
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Ilaria Conti
FSR

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