Cancelling the U.S. electric vehicle tax credit would be counterproductive and cede ground to car-makers in China, U.S. Energy Secretary Jennifer Granholm told reporters on Friday at the COP29 climate conference in Baku.

The federal EV tax credit —known as 30D among policy wonks—has been around in one form or another since the George W. Bush administration. The current version, passed as part of the Inflation Reduction Act in 2022, provides an up-to-$7,500 upfront discount for the purchase of eligible electric and plug-in hybrid vehicles.