The writer is executive director of the International Energy Agency
This is a pivotal moment for Europe. The global energy crisis is threatening to deal a heavy blow to large swaths of its industry and severely undermine its ability to compete on the global stage. At the same time, the region is having to grapple with the implications of the major steps other leading economies are taking in their own industrial policies.
The Inflation Reduction Act in the US is a game-changer, channelling hundreds of billions of dollars into building the energy and manufacturing industries of the future. However, the US is not alone in pursuing such mammoth efforts. China has been ahead of the curve in developing domestic manufacturing of clean energy technologies, while countries such as Japan, Korea and India are also pushing increased investment and support in that direction.