Right now, Peter Carlsson, CEO of the battery manufacturer Northvolt can only sit back.

The US offers him 800 million dollars in green establishment subsidies if he puts his next battery factory in the US.

According to information to SVT, Northvolt is investigating several possible cities in the USA.

The new factory will create 1,000 new jobs.

Should Northvolt instead decide to put its new factory in Germany, they will "only" receive $155 million in support.

But he may soon receive a better offer from the EU.

The EU has realized that it must act

Today, the EU Commission came up with a counteroffer when EU Commission President Ursula von der Leyen presented the EU's new strategy on how to be able to match the American company subsidies.

This is to prevent a mass exodus of European companies, and jobs, to the United States.

But there is still a long way to go before a decision is made.

State aid to companies is completely against EU principles and 27 countries must agree.

France is also proposing a special fund for poor EU countries so they can also support the green transition of their industries.

The USA has a clear advantage, it is a country that has already launched massive climate subsidies.

In the EU, they have just realized that they have to act.

U-turn from globalization

What particularly angered, among others, French President Emmanuel Macron, are the generous subsidies of close to SEK 80,000 per car that the US government distributes to those who buy electric cars in the US.

They only apply to American car brands and thus disadvantage all European car manufacturers who are now also launching electric cars on a broad front.

He accuses the US of green protectionism.

It already started under President Trump and President Biden has continued to promote "Made in America".

The United States, which long led globalization and fought for free trade, has made a U-turn.

And right now it's going well.

Unemployment is down to 3.5 percent and inflation is on the way down.

Also EU protectionist

The EU accuses the US of protectionism but is not exactly innocent themselves.

Before Christmas, EU member states decided to introduce so-called carbon dioxide tariffs, also a form of green protectionism to protect European companies that have already received increased costs due to tougher climate requirements. 

Imported goods from outside the EU will be subject to a penalty tax if they have been manufactured with climate-polluting methods.

It will affect, among other things, American companies.

Have the same climate goals

Despite the loud criticism, the EU Commission and the US have started negotiations.

The goal is for electric cars from European brands to also be covered by the tax rebates.

The USA and the EU still have the same climate goals.

Net zero carbon dioxide emissions by 2050. Both want to electrify production as quickly and painlessly as possible.

But right now both the EU and the US are building green walls, while at the same time saying they want to cooperate against their common counterpart - China. 

With its historic climate package, the US is forcing the European countries to move forward even a little faster.

Suddenly, green subsidies have become a means of competition. 

The winner in this new form of green trade wars is the climate.