How Is the UK Responding to the Inflation Act?

by | 13. Mar 2023 - 15:09 | Economy

Billions in investment in climate protection measures announced.

Not only in the EU, but also in the UK, a response to the US Inflation Reduction Act is being sought. The law, which is intended to promote the expansion of green technology in the USA through massive subsidies, is fueling fears elsewhere that the country will lose its appeal as an investment location and fall behind in the construction of electric vehicles, as the lobby organization Society of Motor Manufacturers and Traders (SMMT) fears. Packaging manufacturer DS Smith also wants certainty about the government’s plans, CEO Miles Roberts told The Guardian (paywall).
Clarity could come this week when UK Chancellor of the Exchequer Jeremy Hunt unveils his budget plan. This will include £20 billion of investment in technologies to reduce CO2 emissions, Hunt announced last Friday. Up to 50,000 new “green” jobs could be created as a result, reports The Guardian (paywall). The country will probably not rely solely on photovoltaics and wind energy, however, as it also plans to invest in the development of new types of nuclear reactors.

Photo: iStock/claudiodivizia

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