{"id":29535,"date":"2023-02-02T14:38:45","date_gmt":"2023-02-02T14:38:45","guid":{"rendered":"https:\/\/www.innovationnewsnetwork.com\/?p=29535"},"modified":"2023-02-02T14:38:45","modified_gmt":"2023-02-02T14:38:45","slug":"eu-announces-its-green-industry-plan","status":"publish","type":"post","link":"https:\/\/www.innovationnewsnetwork.com\/eu-announces-its-green-industry-plan\/29535\/","title":{"rendered":"EU announces its green industry plan"},"content":{"rendered":"

On 1 February, European Commission President, Ursula von der Leyen, presented the Green Deal Industrial Plan<\/a> in an effort by the EU to keep up with a worldwide race in subsidy schemes for green industries.<\/h2>\n

As the EU aims for climate neutrality by 2050, key areas of green industry, such as the manufacturing of wind turbines, solar panels, and battery-electric vehicles must be ready to supply the necessary technologies to decarbonise the economy.<\/p>\n

Upon presenting the plan, von der Leyen outlined: \u201cWe know that in the fight against climate change, the most important thing is the green industry.\u201d<\/p>\n

She continued: \u201cLet me be very clear on this one: We welcome this. This is good news. We have, since long, argued that the fight against climate change is a must.\u201d<\/p>\n

Countries worldwide have begun boosting subsidy schemes for the switch to green industry, including Japan, India, the UK, Canada, and the US, with its Inflation Reduction Act.<\/p>\n

Ensuring the production capacity of key technologies<\/h3>\n

Concerns have been raised that foreign subsidy schemes could encourage specific green industries to relocate production to other countries or build new factories outside Europe.<\/p>\n

Against that backdrop, the Commission adopted a \u2018Green Deal Industrial Plan\u2019 to ensure that the production capacity of green industry in Europe will be increased.<\/p>\n

\u201cWe know that in the next years, the shape of the net-zero economy and where it is located will be decided, and we want to be an important part of this net-zero industry that we need globally,\u201d von der Leyen said.<\/p>\n

Setting targets for green industry<\/h3>\n

The Commission will propose a new \u2018Net Zero Industry Act\u2019 by mid-March to increase the European manufacturing capacity of green industry.<\/p>\n

von der Leyen explained that this \u201cwill set targets for what we need until 2030 because there\u2019s a simple equation: only what gets measured gets done\u201d.<\/p>\n

The new law will focus on the critical technologies for the shift to net zero, speed up permitting, incentivise multi-country projects, and help cut red tape.<\/p>\n

According to the document, industries that will be within the scope of the new green industry policy include batteries, windmills, heat pumps, solar, electrolysers, carbon capture, and storage technologies.<\/p>\n

The plan will be discussed at the meeting of EU heads of state and governments in Brussels between 9-10 February, and von der Leyen said it would \u201cshape the legal proposal\u201d for the Net-Zero Industry Act.<\/p>\n

How will the project be funded?<\/h3>\n

Funding for the green industry project has been a key conflict in the run-up to the meeting, but von der Leyen stressed that there are different options on the table.<\/p>\n

\u201cWe want to leverage the possibilities provided by REPowerEU, InvestEU, and the Innovation Fund,\u201d she stated. While REPowerEU was proposed to eliminate fossil fuel imports from Russia, this \u201cwent much faster than we expected.\u201d<\/p>\n

She continued: \u201cSo we have the possibility to redirect or reorient the additional funding of REPowerEU, which is about \u20ac250bn, to our net-zero<\/a> industries.<\/p>\n

\u201cThis mirrors the speed, the predictability, and the targeted way forward as we see from competitors.\u201d<\/p>\n

Although von der Leyen referred to the investment from REPowerEU as \u201cadditional funding,\u201d it was already decided on much earlier. It was not originally thought of as a response to the US Inflation Reduction Act.<\/p>\n

For now, the EU\u2019s green industry policy funding is expected to be primarily from Member States. This is why state aid rules that typically restrict national subsidies should be\u00a0relaxed under a temporary framework.<\/p>\n

The EU executive will\u00a0start a public consultation\u00a0for this framework next week, von der Leyen announced, explaining that time-limited state aid is \u201ca\u00a0bridging solution\u201d and urged\u00a0Member States to invest as soon as possible.<\/p>\n

Meanwhile, a so-called \u2018European Sovereignty Fund\u2019, which will be discussed alongside the revision of the EU\u2019s multiannual budget this summer, would provide European funding for standard vital technologies, including quantum computing, Artificial Intelligence, and biotechnology.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Green Deal Industrial Plan is the EU’s effort to keep up with a worldwide race in subsidy schemes for green industry.<\/p>\n","protected":false},"author":22,"featured_media":29536,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[24433],"tags":[689,24134],"acf":[],"yoast_head":"\nEU announces its green industry plan<\/title>\n<meta name=\"description\" content=\"The Green Deal Industrial Plan is the EU's effort to keep up with a worldwide race in subsidy schemes for green industry.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.innovationnewsnetwork.com\/eu-announces-its-green-industry-plan\/29535\/\" 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