South Korea and the European Union's critiques of electric vehicle tax credit provisions in the Inflation Reduction Act--which U.S. President Joe Biden is expected to sign into law as soon as Friday--have sparked urgent calls for a global 'climate peace clause' whereby nations would agree not to use archaic trade mechanisms to undermine the emission-reduction policies of other countries.
House of Representatives, requesting that the United States include EVs and battery components manufactured or assembled in South Korea as eligible for U.S. tax benefits, citing the U.S.-Korea Free Trade Agreement.' Such objections have sparked concerns that U.S. efforts to subsidize the production and greater adoption of electric vehicles to counter transportation emissions--the largest source of greenhouse gas pollution in the U.S.