The agreement is intended to prevent market protectionism for future green technologies. EU countries initially considered the requirements as American protectionism.
According to the agreement, the EU and the US will recognize each other as equal partners in the development of green technologies, meaning they no longer view each other as competitors. This will likely lead to increased cooperation between the two economic blocs in the areas of clean energy, sustainable mobility, and other green technologies.
The EU and the US have agreed to collaborate in order to prevent subsidies from disrupting competition between the two economic blocs. They also aim to prevent China from benefiting from internal American-European competition.
This breakthrough in the agreement between the EU and the US is good news for companies and investors engaged in green technologies. The agreement provides more certainty and predictability. “This is the beginning of a new era in cooperation between the EU and the US in the field of clean energy and climate change,” said a spokesperson for the European Commission.
The agreement was announced following a meeting between US President Joe Biden and European Commission President Ursula von der Leyen. Other topics discussed during the meeting included the trade relationship between the EU and the US and the future of international cooperation on climate change.