Global Counsel and The Messina Group establish new global partnership. Learn more

The IRA and GDIP: much more than a subsidy war

Assessing the competitive dynamic between the US and EU and its impact on policy, the investment and operating landscape for the decade to come

The Inflation Reduction Act (IRA) fired the starting gun on 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.
Approach
Title
How we help clients
Approach paragraph
Icon
Campaign icon

Title
Understand and track

Body

Understand the drivers of the IRA and GDIP and what policymakers are looking to achieve. 

Understand the policymaking frameworks in the US, EU and member states that shame the form, scale, and likely impact of industrial policy choices.

Track the development policy globally as subsidies are designed and deployed and other regulatory interventions are implemented. 

Understand how other states will respond to the US and EU frameworks and the ways this may impact the incentives they create. 

Icon
Campaign icon

Title
Assess and prioritise

Body

Map the incentive structure impacts of the IRA and GDIP for an asset or supply chain. 

Identify opportunities and risks around these evolving incentives and develop strategies to respond to them both at the level of the US and EU authorities and in EU member states. 

Icon
Campaign icon

Title
Contribute and engage

Body

Engage constructively with the industrial policy design questions raised by the dynamic created by the IRA and GDIP - and the deeper geopolitical and technological questions behind it. 

People block
Body
Global Expertise

Our people

The Global Counsel team has been central to providing strategic advice on the future of industrial policy to corporates and investors across the globe. They draw on experience from government, trade departments, politics, think tanks, international organizations, and business to advise clients at all levels, including C-Suites, boards, and government/public affairs and operational teams.

Our people