The United States and the European Union are actively engaged in industrial policy and green transition. The U.S. is attempting to reshape the global supply chain, excluding China, in high-tech industries. The EU perceives the green transition as a new growth strategy and has been actively leading the green transition early on. Industrial policy and green transition are not clearly distinguished, and both affect the Korean economy as well as the global economy.
The legislation is central to both industrial policy and green transition. As the importance of legislation increases, the need for parliamentary diplomacy heightens. Parliamentary diplomacy, centered around exchanges between legislators, offers the advantage of discussing sensitive topics that may be difficult to address in official diplomatic channels between countries.
In this report, we first examine U.S. legislation related to industrial policies, such as the Export Control Reform Act, the CHIPS and Science Act, and the Inflation Reduction Act. Next, we examine legislation related to green transition in both the U.S. and the EU, such as the Inflation Reduction Act, European Climate Act, Critical Raw Materials Act, etc. We explore the legislative process, key content, and ramifications, along with deriving implications for parliamentary diplomacy through the analysis of domestic political factors in the U.S. and the EU.