Race to the Top for Climate

The report analyzes the current state of transatlantic industrial decarbonization policies, identifying a significant divergence between the EU's regulatory-led approach and the US's subsidy-driven model. It argues that while high-level negotiations on carbon pricing (such as GASSA) have stalled, there is substantial opportunity for cooperation through 'softer' market functions, including R&D, green public procurement, and the harmonization of technical standards. The document provides a detailed SWOT analysis of various policy instruments and technology-specific areas, recommending the creation of dedicated dialogue platforms and innovation hubs to foster a globally interoperable clean economy.

• Attempts to establish a common US-EU approach to carbon pricing, specifically through the Global Arrangement on Sustainable Steel and Aluminum (GASSA), have reached a stalemate due to fundamentally different national approaches and political sensitivities regarding the EU's Carbon Border Adjustment Mechanism (CBAM).
• The US and EU exhibit a stark contrast in their primary industrial decarbonization tools: the EU relies on regulatory frameworks and carbon pricing (EU ETS and CBAM), while the US prioritizes comprehensive tax credits and subsidies, most notably through the Inflation Reduction Act (IRA).
• Transatlantic cooperation is strongest in Research and Development (R&D) and information tools, supported by platforms like Mission Innovation and the IRENA Collaborative Frameworks, though these are currently dominated by hydrogen-focused initiatives.
• Green Public Procurement (GPP) is identified as a high-potential area for 'carrot-based' cooperation, though it is currently hindered by the US's use of local content requirements and the EU's lack of a comprehensive, binding GPP framework.
• There is a significant gap in cooperation regarding the circular economy and industrial electrification, both of which are assessed as having 'poor' or 'moderate' current links but 'good' potential for future improvement through shared standards and innovation hubs.
• Just transition policies are fragmented and lack dedicated transatlantic platforms, with the EU utilizing large-scale funding programs (e.g., Just Transition Fund) and the US employing a mix of federal and state-level grants and tax bonuses.
• The report suggests that the Trade and Technology Council (TTC) could be evolved into a permanent, stakeholder-engaged platform to coordinate on 'softer' industrial decarbonization goals, such as green procurement and technical standards, to avoid the political pitfalls of carbon pricing.

APA

Lipiński, M., Sands, A., Stefańczyk, A., Śniegocki, A., Wrona, A., Czaplicka-Kotas, A., Laskowski, K., & Wetmańska, Z. (2024). Race to the Top for Climate. Climate Strategies. https://climatestrategies.org/wp-content/uploads/2024/09/REPORT-Race-to-the-Top-for-Climate-1.pdf

Chicago

Lipiński, Maciej, Anna Sands, Aneta Stefańczyk, Aleksander Śniegocki, Adrianna Wrona, Agnieszka Czaplicka-Kotas, Kamil Laskowski, and Zofia Wetmańska. Race to the Top for Climate. Climate Strategies, 2024. https://climatestrategies.org/wp-content/uploads/2024/09/REPORT-Race-to-the-Top-for-Climate-1.pdf.

Wikipedia

{{cite report |last1=Lipiński |first1=Maciej |last2=Sands |first2=Anna |last3=Stefańczyk |first3=Aneta |last4=Śniegocki |first4=Aleksander |last5=Wrona |first5=Adrianna |last6=Czaplicka-Kotas |first6=Agnieszka |last7=Laskowski |first7=Kamil |last8=Wetmańska |first8=Zofia |title=Race to the Top for Climate |publisher=Climate Strategies |date=2024 |url=https://climatestrategies.org/wp-content/uploads/2024/09/REPORT-Race-to-the-Top-for-Climate-1.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{lipiski2024race, author = {Lipiński, Maciej and Sands, Anna and Stefańczyk, Aneta and Śniegocki, Aleksander and Wrona, Adrianna and Czaplicka-Kotas, Agnieszka and Laskowski, Kamil and Wetmańska, Zofia}, title = {{Race to the Top for Climate}}, institution = {Climate Strategies}, year = {2024}, url = {https://climatestrategies.org/wp-content/uploads/2024/09/REPORT-Race-to-the-Top-for-Climate-1.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }