US INFLATION REDUCTION ACT, THE WORLD RE-ACTS

Enacted in August of l ast year, the implications of the US Inflation Reduction Act (IRA) are beginning to emerge , both domestically and on a n international level. The IRA comes in the context of an energy shock , following the Russian invasion of Ukraine and just after a supply chain shock following the COVID-19 pandemic . Both events highlighted the importance of energy and manufacturing independence at the expense of delocalisation and globalisation. Moreover, t he energy shock has served as an accelerator of the green energy transition , which in turn has become a way to achieve energy independence. I n this report we attempt to answer several crucial questions in the context of the IRA: What implications does the policy have on the EU , and how is the bloc reacting? Comparatively, w hy is China less concerned , and what have been the broader consequences on other Asian countries?