EU plans to loosen state aid rules to boost renewablesinvestment

Proposed use of tax credits follows pressure to respond to Biden’s $369bn green subsidy scheme in US

The EU is stepping up its green subsidy race with the US through plans to loosen state aid rules on tax credits for renewable energy projects.

European policymakers have been under pressure to respond to the US president Joe Biden’s $369bn (£298bn) Inflation Reduction Act, which aims to encourage renewables investment in everything from electric cars to wind turbines.