EU – US cooperation on the clean energy transition can strengthen economies and energy security on both sides of the Atlantic and in third countries. Recent European concerns over the potential impact of the US Inflation Reduction Act on the EU’s clean technology industry have elevated transatlantic clean energy diplomacy to the highest political level. As a result, the latest E3G briefing identifies the many opportunities to expand clean energy cooperation through existing diplomatic forums and initiatives.

As the world’s first and third largest economies and each other’s largest trading partners, the US and EU play a significant role in shaping the global clean energy transition. The US Inflation Reduction Act (IRA) and European Green Deal demonstrate leadership and domestic implementation of international climate commitments. Passage of the IRA had the added effect of centering clean energy at the heart of discussions on economic modernisation and global competitiveness, pushing the topic to the highest political level.

The EU and US already cooperate on energy diplomacy across a range of established forums and initiatives. A step change is needed to enable the energy transition on both sides of the Atlantic to become a key driver of energy security and economic resilience. Thus, the briefing makes recommendations about how to expand cooperation across the three areas below:

1. Energy security and resilience:

- Priority needs to be given to reducing energy demand reduction, energy efficiency, and clean energy in forums and initiatives focused on energy security cooperation.

- In addition, it would be necessary to rally international organisations and diplomatic events around clean energy delivery to ease global energy markets.

2. Trade and investment. There is a need to expand collaboration and cooperation in the following areas:

- Extend EU – US work on aligned rules and standards to include additional energy transition technologies.

- Ensure partnerships with third countries aimed at developing clean energy supply chains support human rights, environmental standards, and local value creation.

- Collaborate to fill research and innovation gaps for key clean energy solutions.

3. Finally, capacity building and knowledge exchange between the two powers should be strengthened in the following ways:

- Strengthen EU – US coordination of technical assistance and macroeconomic support for energy transitions in third countries.

- Exchange and demonstrate best practices for integrating a high percentage of renewables and other clean technologies in energy systems.

- Share strategies and lessons learned for clean energy workforce development and achieving a just transition for workers and communities.

If you want to read the full briefing on the priorities for EU-US cooperation on clean energy click here.