The international community will not follow the Inflation Reduction Act

The U.S. came to last year’s United Nations climate conference in Sharm El-Sheik Egypt riding high. Finally, the country had passed the Inflation Reduction Act, a $369 billion dollar spending package designed to put the country on a path to eliminate its carbon emissions. But, a few short months later, administration officials and members of Congress faced a range of questions and complaints about the landmark law. Why doesn’t it include funding to help countries most vulnerable to climate change? Could a future Republican Party undo it? Perhaps the most biting question came from allies: why does the law throw some of the U.S.’s closest partners under the bus? One South Korean official called the law a “betrayal.” In the midst of the conference in Egypt, the EU dropped an extensive document complaining of “problematic” tax provisions that would harm the bloc’s industry. Japan said the law might stop its car companies from investing in the U.S. In December, Amitabh Kant, the Indian government official charged with leading this year’s G20 summit, joined the chorus, telling me the law represents “the most protectionist act ever drafted in the world.” He called on the U.S. to rethink provisions that favor U.S. manufacturing and “find a way out for its trusted partners,” including India.