The passage of the Inflation Reduction Act (IRA) in 2022 marked the beginning of a new era in US industrial & climate policy. Yet AmericaÕs landmark climate legislation was not met with enthusiasm by European leaders who had demanded more US climate leadership. Rather, the IRA caused anxiety across the Atlantic and fears of a global subsidy race to the bottom. But is a Òzero-sum competitionÓ on clean innovation & industry inevitable? This policy brief examines the state of transatlantic relations in the age of the IRA and explores new pathways for the US and Europe to expand cooperation, repair relations, and advance global climate technology innovation on a joint basis. Building on a series of interviews with policymakers and expert observers, the report makes the case that there is growing necessityÑand opportunityÑfor allies to build a substantial partnership on net-zero technology and industry.