The European Commission’s new framework lets member states offer incentives for the production of renewable energy and manufacturing batteries, carbon capture technology and other equipment through the end of 2025. Governments will also be able to dole out larger subsidies “where there is a real risk of investments being diverted away from Europe.” (The Logic)

Talking point: European policymakers—like their Canadian counterparts—are worried about one direction of diversion in particular: towards the U.S., where the US$369-billion Inflation Reduction Act will pay companies heretofore unseen sums to up clean power production and manufacturing in the country. Ottawa successfully lobbied Washington for a role in the electric vehicle section of its green transition plan. Brussels has been bidding for the same concessions, even as it rolls out its own subsidy scheme; not all EU countries have committed to provide more funding. European Commission President Ursula von der Leyen and U.S. President Joe Biden will reportedly agree Friday to launch talks on a free trade-like setup.