JAMES WEBBER DISCUSSES CLEAN HYDROGEN AND THE U.S. INFLATION REDUCTION ACT WITH THE FINANCIAL TIMES

James Webber, antitrust partner at Shearman & Sterling based in Brussels and London, told the Financial Times that the European Union can take proactive steps to support member states in their effort to compete with U.S. companies which stand to benefit from the so-called green subsidies included in the $396 billion U.S. Inflation Reduction Act.

One potential area of support is in the production of clean hydrogen. Webber proposed a “big bang loosening option” for hydrogen production which would provide EU companies with a direct subsidy of €3 per kg of green hydrogen, similar to the tax credit that U.S. producers can access through the landmark U.S. Inflation Reduction Act. The IRA is an effort to lower U.S. inflation by investing in domestic energy production, among other initiatives.

European Union members are constrained by state rules which prevent individual governments from offering subsidies that would disadvantage other members.

Read “EU struggles to counter Joe Biden’s big green push.”

(Subscription required)

First appeared in Financial Times.