European Clean Tech Lags Behind US due to Inflation Reduction Act
European clean tech start-ups attracted $8.7 billion in investment for early-stage technologies within the year since the Inflation Reduction Act (IRA) was signed in the US.
In contrast, the US secured more than $21.7 billion for similar projects in the same time frame.
Despite the EU leading in energy and transport investment in Q2 2022, the US outpaced the EU in funding for clean hydrogen since Q2.
Venture capital investments in clean hydrogen reached €343 million in the EU’s Q1 2022, three times the US’s equivalent funding, but subsequent quarters saw the US outpace the EU.
The European Commission announced the Net Zero Industry Act and loosened state aid rules in response to the IRA, pledging an EU fund to boost investment in green industries.
The US’s tax credit scheme was seen as simpler and more focused on mass deployment of green technologies than the EU’s funding program.
