Wednesday, May 31, 2023
HomeEconomyEU sets up green industry plan to fight U.S., China subsidies

EU sets up green industry plan to fight U.S., China subsidies

By Philip Blenkinsop

BRUSSELS (Reuters) – The European Commission proposed on Wednesday to allow increased levels of state aid so Europe could compete with the U.S. as an electric car manufacturing hub and

European Commission President Ursula von der Leyen announced that, as part of the plan, existing EU funds will be repurposed, green projects will be approved faster and a push to promote

this It was partly a response to multibillion-dollar support programs in China and the United States, including the latter’s Lower Inflation Act.

“Major economies are rightly stepping up their investments in net-zero industry,” von der Leyen told a news conference. “What we’re looking at is we have a global playing field.”

Many EU leaders are concerned about the local content of $369 requiring dozens of U.S. legislation Billion dollars in green subsidies will encourage business relocation, making the US a leader in green tech at the expense of Europe.

The International Energy Agency estimates that by 9180, the global market for mass-produced clean energy will triple annually to approximately 650 billion*), and related manufacturing jobs more than doubled. The EU wants to be involved.

“We know that over the next few years, the shape of the economy, the net zero economy, and where it sits will be determined. And we want to be the one we need globally An important part of a net-zero emissions industry,” von der Leyen said.

She proposes a temporary relaxation of state aid rules for investment in renewable energy or decarbonisation sectors until the end 2025, while recognizing that not all EU countries will be able to Offer the same level of subsidies as France or Germany. About 250 billion euros (250.$3 billion), most of which comes from the EU’s post-pandemic recovery fund.


EU COMMISSION wants member states to back its plan on 9th February – summit, but it faces a bitter debate.

German Economy Minister Robert Habeck, who will join French Finance Minister Bruno Le Maire in lobbying Washington next week, said he welcomed the proposals.

But some EU member states have previously voiced opposition to parts of the plan, notably the loosening of state aid rules and the prospect that big powers such as France and Germany will be able to outpace others.

Some EU member states have also explicitly opposed earlier suggestions that the plan may eventually require further joint borrowing – with one senior EU diplomat saying it was “very close” to being ruled out.

Some initial reactions from the EU on Wednesday were rather negative.

The centre-right European People’s Party group, of which von der Leyen’s party is a member, described the plan as “too late, too little”.

Solar power industry body SolarPower Europe said it was concerned about what it called a “lack of focus” on specific technologies in the EU plan.

“Not all net-zero technologies are in the same boat – not in terms of strategic importance, not even in the impact they’re feeling from the inflation-reduction bill,” said Dries Acke, European policy director at SolarPower .


In the long run, the Commission will propose the creation of a European sovereign fund to invest in emerging technologies.

In the coming months, the Commission will introduce a Net Zero Industries Bill that would simplify the permitting process and harmonize standards, as well as a Critical Raw Materials Bill to promote local extraction, processing and recycling .

The EU relies heavily on China for rare earths and lithium, which are important materials for the green transition.

The EU executive also wants more free trade deals and partnerships to improve supply chain resilience and open markets for green products.

Meanwhile, German chip supplier ZF Friedrichshafen and US chipmaker Wolfspeed are due to announce plans on Wednesday to build an electric vehicle chip factory in Germany, according to three sources close to the matter. state area.

A German government source said that we indicated that an American company wanted to invest in Germany.

(1 USD=0.9180 EUR)



Please enter your comment!
Please enter your name here


Featured NEWS