A N A LY S I S CLIMATE CHANGE, ENERGY AND ENVIRONMENT BEYOND THE CLIMATE TECH ARMS RACE US-EU Cooperation in the Net-Zero Transition Justin Talbot Zorn April 2024 The passage of the Inflation Reduction Act(IRA) in 2022 marked the beginning of a new era in US industrial policy. More importantly, the law can also be interpreted as America’s most significant contribution to the global fight against climate change. However, the IRA also caused anxiety across the Atlantic. Fearing a global subsidy race to the bottom, EU partners expressed alarm around a po­tential zero-sum competition. While the transatlantic partners must each chart their own green industrial strategies, the potential and necessity for expanded cooperation on net-zero technology and industry is substantive and should be pursued proactively.