A Trade Spat Is Brewing Over US Green Incentives

Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union.

EU officials are warning their counterparts in the US that recently enacted green legislation risks creating tensions that may lead to “ reciprocal measures,” according to a document submitted to Washington. The bloc wants the US to remove discriminatory content and production requirements in the Inflation Reduction Act — which offers billions of dollars in incentives for renewable energy companies — and to receive the same treatment as other US trading partners. The dispute, which comes as the UN’s climate conference kicked off yesterday in Egypt, will be discussed among the bloc’s finance ministers when they gather in Brussels from today. France’s Bruno Le Maire called for swift EU action, saying in an interview with European newspapers published today that he wants a “coordinated, unified and strong answer to our American allies.”