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The Inflation Reduction Act

by Max Gruenig

Impacts on Cleantech, Trade and Investment

The United States have seen significant developments in key cleantech sectors following the introduction of the Inflation Reduction Act (IRA). With the expiration of some support instruments in 2025, a new chapter for cleantech trade and investment in the United States is about to begin in 2026. This publication, produced in collaboration with E3G, examines the IRA’s impact on investment flows, imports, and exports across major U.S. cleantech sectors.

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"Despite facing significant fiscal and regulatory headwinds, cleantech in the US is expected to grow, albeit unequally," writes the author. "The sheer size of the US cleantech market means that it remains an attractive prospect both for exports and foreign direct investment. The new policy environment will require adjustments by cleantech exporters and investors and might lead to a restructuring of market shares."

 

The views, conclusions and recommendations expressed in this report are solely those of its author and do not reflect the views of the Konrad-Adenauer-Stiftung, or its employees.

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Jan Bösche

Jan Bösche
Senior Policy Advisor
Jan.Boesche@kas.de +1 202 464 5849
Single title
October 2, 2023
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