Trade and manufacturing Climate, energy and net-zero

The IRA and GDIP: Much more than just a subsidy war


The Inflation Reduction Act (IRA) has fired the starting gun on what is likely to be a new era of industrial policy around the green transition and, set alongside the CHIPS Act and Bipartisan Infrastructure Law, marks a wide shift in US policy. It has also triggered an anxious response from the EU with the Green Deal Industrial Plan (GDIP), and although they are often compared at a headline level, the two strategies have important structural differences.

We believe the twin engines of decarbonisation and geopolitics and the twin imperatives of technological leadership and technological autonomy signified by the IRA and GDIP will shape the investment and operating landscape for the decade ahead. They are also a unique opportunity for firms to shape a new generation of industrial policy tools.

At GC, we understand the importance of navigating this new industrial system. We can help clients to better understand and track these policies, assess incentive structures and opportunities within, and finally, provide advice on how to engage constructively with the evolving landscape of industrial policy in the US and EU. 

The views expressed in this report can be attributed to the named author(s) only.