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US to potentially amend 'green subsidies' to appease EU: John Kerry

  • By Al Mayadeen English
  • Source: Agencies
  • 11 Dec 2022 22:31
  • 1 Shares
4 Min Read

US envoy John Kerry spoke about the recent backlash the UK government was facing over the government's decision to launch operations of a new coal mine.

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  • Kerry says US could 'tweak' green subsidies after EU anger
    Kerry says US could 'tweak' green subsidies after EU anger

US climate envoy John Kerry said on Saturday that the US is open to amending its green subsidy program that sparked a row of anger among EU officials over the potential impact it could have on triggering massive job losses across the bloc. 

Kerry further noted in an interview with BBC Today program on Radio 4 that the UK government was facing heavy backlash over the government's decision to launch operations of a new coal mine.

France has also shown disproportionate levels of discontent with the act as evidenced by French President Emmanuel Macron's recent state-visit to Washington during which he threw a massive undiplomatic remark at his US hosts, that the Inflation Reduction Act (IRA) subsidies were posing a major threat to French competitors. 

The IRA specifically covers a wide range of areas, including energy-related legislation.

It increased the Investment Tax Credit for renewable energy projects from 26% to 30% and extended it to all storage projects. It also includes tax credits to manufacture solar panels, inverters, and racking components.

In addition, there are more tax credits for electric vehicles, electrical panels, heat pumps, and many other products directly related to the renewables industry.

The bill promises to put the difference of about $300 billion toward deficit reduction. It will also provide $369 billion in funds for energy security and climate change. $64 billion will be allocated to the Affordable Care Act over the next ten years.

"I don't think you're going to see it watered down," Kerry said, adding that the measures were required to launch the climate transition. "But will you see, where it might be appropriate if there were some tweak or adjustment that is fair, and not going to prejudice our own efforts?"

"I'm confident President (Joe) Biden would consider that," he said, adding that Biden never meant to harm EU competitors and has committed to be more considerate of the EU's needs.

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Read more: EU MPs consider submitting a WTO complaint against US

Kerry also spoke out after the UK gave the go-ahead for its first new deep coal mine in 30 years, indicating once more that the British government is inconsiderate of the environment. 

Greenpeace was quick to slam the project as a "climate hypocrisy", which is likely to antagonize other countries, according to Kerry.

Wealthier countries are breaching their own climate rhetoric as they communicate to poorer nations, "do as we say, not as we do".  

The official added that further information is required to make a proper decision on the mine which is solely intended to supply coal for steel plants. 

"But obviously, we will hear people raise criticisms about it because in general, the idea of mining coal in any form whatsoever is the opposite direction from that which most people are advocating and most people are moving in," he said.  

Speaking at the recent COP27 climate summit in Egypt, he said representatives lacked "collective ambition" to improve the dire condition of the environment.

Though he did not rebuke the overall UN process. 

"If you didn't have that kind of a process, you'd have to invent it. Because you need to get every nation on the planet engaged in this dialogue and in this effort." 

Read more: EU slams US over war-accumulated wealth: Politico

  • Inflation Reduction Act
  • Climate change

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