After much foot-dragging, the European Commission proposed a cap on the price it will pay for natural gas yesterday. Fifteen of the union’s members had proposed such a cap to limit Russian energy revenues due to spiking gas prices since Moscow’s invasion of Ukraine, but a group of members led by Germany are opposed to it.
As the United Nations COP27 Climate Change Conference closed Sunday, Egypt, this year’s host, hailed the agreements brokered there as a success. But there continues to be a gap between the climate-change commitments most countries in the Middle East and North Africa have formally expressed and their actual behavior.
Financial incentives for the purchase of electric vehicles included in the U.S. Inflation Reduction Act are leading to renewed trade frictions with the EU. While those tensions are significant in and of themselves, they mask deeper problems with how the IRA and climate legislation more generally fit into the global trade regime.