BRUSSELS – U.S. President Donald Trump’s directive to pause funding from the country’s climate and infrastructure initiatives offers Europe a chance to attract clean tech investments, according to Poland’s Deputy Climate Minister Krzysztof Bolesta.
The pause affects funds from the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act—two cornerstone programs from the Biden administration aimed at supporting clean energy and infrastructure. The White House stated the pause targets programs that discourage fossil fuel development or promote electric vehicles.
“This is our moment,” said Bolesta in an interview with Reuters. “Many companies were considering moving investments to the U.S. because of IRA subsidies and fewer European regulatory burdens. Now, with U.S. funding harder to access, we have a real opportunity to capitalize.”
While the extent of funding affected by Trump’s order remains unclear, most clean energy grants under the IRA have already been awarded. Still, the move aligns with Europe’s preparations for a new industrial policy, the “Clean Industrial Deal,” set to be unveiled next month.
The package is expected to streamline state aid rules, prioritize local technologies in public procurement, and simplify regulations like the Carbon Border Adjustment Mechanism (CBAM), which will impose carbon costs on imports from 2026.
Bolesta emphasized the need for the EU to seize this opportunity and simplify its complex rules: “If CBAM is simplified as part of the Clean Industrial Deal, it could reduce red tape, especially for smaller companies, making Europe a more attractive destination for clean tech investments.”
The EU’s proactive approach could position Europe as a global leader in clean industries, leveraging the shifting policy landscape in the U.S. to attract investments and accelerate decarbonization.