EU presents industrial plan in response to US Inflation Reduction Act
Today, the European Commission presented the Green Deal Industrial Plan to enhance the EU's competitiveness of its net-zero industry and support the twin transition. The Plan aims to provide a more supportive environment for the scaling up of the EU's manufacturing capacity for the net-zero technologies and products required to meet Europe's ambitious climate targets.
The Communication on a Green Deal Industrial Plan is based on four pillars:
A simplified regulatory environment
Faster access to sufficient funding
Open trade for resilient supply chains
To achieve a predictable and simplified regulatory environment, the Commission will propose a Net-Zero Industry Act to underpin industrial manufacturing of key technologies in the EU, a Critical Raw Materials Act (to be published on 8 March), a reform of the electricity market design (consultation open until 13 February) and Ecodesign requirements on net-zero technologies.
Regarding access to funding, the Commission will focus on the Temporary State Aid Crisis and Transition Framework and it will revise the General Block Exemption Regulation, increasing notification thresholds for support for green investments. Moreover, they will propose a European Sovereignty Fund before summer 2023. The Commission has also adopted a new guidance on recovery and resilience plans.
Net-Zero Industry Academies will be established to roll out up-skilling and re-skilling programmes in strategic industries. The Commission will also consider how to combine a ‘Skills-first' approach with existing approaches based on qualifications, and how to facilitate access of third country nationals to EU labour markets in priority sectors, as well as measures to foster and align public and private funding for skills development.
Lastly, on open trade, the EU will continue to develop Free Trade Agreements and other forms of cooperation with partners, while also explore the creation of Clean Tech/Net-Zero Industrial Partnerships.
To read the full document, please click here.