Leaked EU plan reveals response to US and Chinese green subsidies

Draft plan to loosen state aid rules follows Joe Biden’s Inflation Reduction Act and Chinese subsidies

The EU executive will loosen state aid rules and propose a new “European sovereignty fund” later this year, in response to the controversial US Inflation Reduction Act and China’s “unfair” green subsidies.

A leaked European Commission plan underscores the global green subsidy race is under way, although EU member states remain divided on how to respond.