Yellen says she’ll try to soothe EU anger over US climate law

US Treasury Secretary Janet Yellen said she stands ready to work with a range of countries that have complained about what they see as discriminatory aspects of a landmark US climate law.

“We are consulting widely with affected groups, including the Europeans and other countries that have concerns about the act,” Yellen told reporters shortly after meeting with French Finance Minister Bruno Le Maire Monday on the sidelines of the Group of 20 summit in Bali, Indonesia.

Yellen stopped short of saying she would make an effort to convince lawmakers to change the law, but said she’d like to explain more about the legislation to her counterparts in Bali.

“There are aspects of the legislation that they may not fully understand that may be more positive in addressing their concerns,” Yellen said. “We stand ready -- within the limit of what kind of law that Congress has passed -- to work with them to address concerns to the extent we possibly can, and also to explain ways in which the law will benefit them.”

In short public remarks at the top of the meeting, Le Maire made a point of referencing French concerns. 

Le Maire last week called on the European Union to make a “strong and coordinated response” to the law, known as the Inflation Reduction Act. He did not rule out lodging a complaint with the World Trade Organization.

South Korea has also criticized the legislation. The country’s president, Yoon Suk Yeol, caused controversy in September when he was overheard insulting American lawmakers over the issue while in New York.

The US law came into force in August, offering billions of dollars to subsidize the production of electric vehicles in North America. The EU has warned of possible retaliation.

The US and the European Commission created a task force last month to try to resolve their disagreements.