Green-related services under the Inflation Reduction Act (IRA) of the United States
We provide practical one-stop green compliance service support for enterprises
Help you make early plans, respond to policy changes with high flexibility and speed, and seize the green opportunities in the US market
What is IRA？
The Inflation Reduction Act (IRA) of the United States is the largest climate and clean energy investment bill in American history. It promotes energy transformation and the return of industries to the United States through $369 billion in clean energy subsidies, and helps the United States form a “domestic supply chain of clean energy”.
The IRA came into effect in August 2022, and its restrictions on origin have imposed severe trade barriers on Chinese enterprises.
Which Chinese enterprises are affected by IRA?
The types of Chinese industries/enterprises most significantly affected by IRA include; Battery and energy storage industry chain enterprises, photovoltaic module and equipment manufacturers, new energy vehicle and core component enterprises, hydrogen energy and fuel cell industry chain enterprises, software and energy digitalization system suppliers, etc.
The restrictions imposed by IRA on Chinese enterprises | The dual test of entry barriers and supply chain restructuring
Restrictions on foreign entities of interest
Starting from 2024, IRA subsidy programs involving sensitive areas (such as ITC/PTC, etc.) are not allowed to use key components from “Foreign Entities of Interest” (FEOC). Enterprises from the Chinese mainland are widely classified as FEOC and are subject to access restrictions.
Restrictions on the sources of key materials
For IRA subsidy programs that include batteries or energy storage modules, their key minerals must come from the United States or FTA countries. Sources from the Chinese mainland will be excluded, and they must also meet the requirements for assembly in North America. Even if Chinese-funded enterprises invest and build factories in the United States, there are restrictions on their shareholding ratios.
The competitive advantage has been eroded
The IRA subsidy mechanism has given domestic clean energy projects in the United States a significant financial advantage, severely squeezing the low-price competitive space of Chinese enterprises.
We help you respond to policy changes with high flexibility and speed.
Policy tracking and risk assessment
We provide you with real-time tracking of changes in US policies. Green trade experts offer one-on-one interpretations of the terms and restrictions of the IRA, clarify the regulatory red lines, sort out whether your enterprise’s products are subject to FEOC restrictions, and assess the impact, challenges and opportunities your enterprise faces from the IRA.
Compliance Policy Development
Tailored high-flexibility compliance solutions for corporate compliance issues and future risks, helping export enterprises achieve a smooth landing.
Shape green value competitiveness
By establishing a traceable product carbon footprint management system and enhancing the enterprise’s sustainable development performance and disclosure capabilities, we help our clients strengthen the transmission of green value, increase trust in the end market, and create a differentiated green competitive advantage in an IRA-restricted environment.
Our advantages
Data advantage
Intelligently match carbon accounting methodologies, automatically adapt to the optimal declaration plan, and reduce the compliance costs of enterprises.
Technical advantage
Self-developed carbon accounting AI engine, automated accounting process, and dynamically optimized enterprise carbon emission accounting model.
Ecological advantage
Covering 26 types of regulations such as CBAM/CSRD/ battery passports, it is compatible with the entire industrial chain scenarios of multiple industries.
Safety Assurance
Blockchain + industrial Internet of Things data channel, achieving full lifecycle protection of data.
More Green Trade Services
We deeply integrate AI to provide you with efficient and user-friendly green trade tools.
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