On 16 August 2022, the
US passed the Inflation Reduction Act of 2022 (‘IRA’) – the world’s largest
green subsidy measure in modern economic history. This legislation came at a
time when subsidies for green energies have been increasing substantially
around the globe. This article analyses the EU Green Deal Industrial Plan
(‘GDIP’) – the EU’s response to the US’ IRA and the general increase of
subsidies worldwide. In particular, the article argues that the two key
legislations under the GDIP – the Critical Raw Materials Act (‘CRMA’) and the
Net-Zero Industry Act (‘NZIA’) – are in line with WTO law as well as makes
recommendations on how the EU use its external relations to strengthen its
development of green energy technologies.