EU vs US counter billion euro financing plan for green

EU vs. US counter: billion euro financing plan for “green” industry

Von der Leyen stated that the objective of the new industrial plan was to make Europe’s economy a world leader in the market for clean technologies and innovations. “In the coming decades, we will experience the greatest industrial shift of our time – perhaps even of all time,” von der Leyen said Tuesday at the World Economic Forum in Davos, Switzerland. “And those who develop and manufacture the technologies that underpin tomorrow’s economy will have the greatest competitive advantage.”

Von der Leyen cited controversial subsidy plans for climate-friendly technologies in the US and China for competition reasons as one of the reasons for the new plan. “For the European industry to remain attractive, it is necessary to follow offers and incentives outside the EU”, he explained.

More and faster government funding

For her, it is necessary to make the rules for state subsidies more flexible. However, additional EU funds would also have to be made available. It is known that state aid can only be a limited solution that only some member states can resort to, explained von der Leyen.

That is why, according to them, a solution is being sought on how companies in EU countries without great financing opportunities could be supported in the short term. In the medium term, there should therefore be a “European Sovereignty Fund”.

New industrial plan for the EU called for

EU Commission President Ursula von der Leyen wants to make Europe’s economy a world leader in the market for clean technologies and innovations with a new industrial plan. Von der Leyen also cited subsidy plans for climate-friendly technologies in the US and China, which were controversial for competition reasons, as a reason for the new plan. Specifically, the plan envisions creating more favorable conditions for suppliers of products such as wind energy, heat pumps, solar energy and clean hydrogen. A “zero net industry law” should also be proposed to this end, setting targets for clean technologies in Europe by 2030.

first call only

Von der Leyen did not say what the amounts would be. A needs analysis is underway, she explained. Europe completely overslept development in the US. The North American programme, approved last year and now running, foresees investments of US$369 billion (EUR 341 billion). It’s mainly criticized because the subsidies and tax credits are tied to companies that use American products or produce in the US – the buzz word for it: “Buy American.”

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Climate crisis: who needs to act?

“We must work to ensure that our respective stimulus programs are fair and mutually reinforcing,” von der Leyen made clear on Tuesday, with a view to the dispute and ongoing talks, that the EU is not planning a similar clause. Commission representatives had already emphasized in advance that they did not want a “Buy European” programme, but rather “Made in Europe” funding.

Von der Leyen expressly emphasized in his speech: “Our aim must be to maintain transatlantic trade and transatlantic investment as best we can.” corresponding consequences for prosperity. Any decline in trade could have a positive impact on the environment and climate.

Clean tech goals for 2030

In addition to new investments, von der Leyen’s industrial plan foresees reducing bureaucracy for suppliers of products such as wind energy, heat pumps, solar energy and clean hydrogen. A “zero net industry law” is also to be proposed to this end, which will set clear targets for clean technologies in Europe by 2030 on the road to climate neutrality.

Less reliance on China

Other points include reducing dependence on raw material supplies from countries such as China, a program to develop skilled workers and decisive action against countries that do not comply with World Trade Organization (WTO) rules.

China, for example, is encouraging energy-intensive companies to relocate all or part of their production there with promises of cheap energy, low labor costs and a more flexible regulatory environment, said von der Leyen. At the same time, the country is heavily subsidizing its industry and restricting access to the Chinese market for EU companies.

The first details of the plans should be available by the end of the month. The heads of state and government of EU states issued a corresponding mandate at their meeting in December. They then want to discuss this at a special meeting on the 9th and 10th of February.