Canada’s natural resources minister has warned the US against waging a “carbon subsidy war” with its allies, saying the Biden administration’s $369bn clean energy package creates an “unlevel playing field” in global trade.
Jonathan Wilkinson, a senior member of Justin Trudeau’s Liberal government, said Canada and Europe were seeking to “match” the US Inflation Reduction Act and its colossal handouts for clean energy developers, but acknowledged that they would struggle to compete.
The IRA’s “very significant subsidies had created an unlevel playing field for the Europeans and for Canada”, Wilkinson said in interview with the Financial Times.
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