Europe urged to fight US for low-carbon investment

Continent should match US policies such as the Inflation Reduction Act to attract capital for net-zero push, says former vice-president Al Gore

Europe must compete more aggressively with the US for private investment in low-carbon technology and create an international rivalry that could trigger a “race to the top” in the push for net zero, former US vice-president Al Gore told the World Economic Forum in Davos today. The EU is under pressure to respond to Washington’s recently passed Inflation Reduction Act (IRA), which has enabled the US to seize the initiative in the global competition for capital by offering world-leading tax credits to technologies including CCS and low-carbon hydrogen. In December, the Council of the EU and the European Parliament finalised negotiations on a Carbon Border Adjustment Mechanism (CBAM), which imp