Green subsidies & tax credits
Compare national policies on Green subsidies & tax credits across jurisdictions, through progress, institutions, and expectation structures.
What it is
Policies that pull investment into clean technology and equipment via subsidies, tax credits and government guarantees — the "carrot" that draws out investment, as opposed to pricing emissions (the "stick").
Implications for companies
The availability and deadlines of credits and subsidies heavily shape investment timing and returns. An early sunset of incentives forces investment plans to be revised.
Differences by country
The US introduced large tax credits via the IRA (2022), but the OBBBA (July 2025) accelerated the repeal and curtailment of many. Japan aims to catalyse ¥150tn of public-private investment over ten years with ¥20tn of GX transition bonds (the world’s first sovereign transition bonds). The EU supports through the Green Deal and state-aid frameworks.
What to watch
A clear contrast between the US rolling back credits and Japan and the EU sustaining investment support. The predictability of subsidies is the key to corporate investment decisions.
Related policies
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