EU prepares green industry deal to host US and China |
BRUSSELS, Feb 1 (Reuters) – On Wednesday Europe Commission as Europe’s manufacturing hub for electric vehicles and other green products USA to allow increased state aid so that it can compete with and reduce its dependence on China offer did
Europe As part of the plan, Commission chief Ursula von der Leyen announced the reallocation of existing EU funds, faster approval of green projects and drives to secure trade deals to boost skills and secure supplies of critical raw materials.
This is partly China and USAIt is a response to the multibillion-dollar stimulus programs, including the latter’s Anti-Inflation Act.
“Major economies are rightly increasing investment in net zero industries,” von der Leyen said at a press conference. “What we’re looking at is that we have a global playing field.”
Many EU leaders are concerned that USA 369 in the legislation billion local content requirements of dollar green subsidies will encourage companies to relocate and the US will become a leader in green technologies at the expense of Europe.
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The International Energy Agency estimates that by 2030, the global market for mass-produced clean energy will triple to about 650 billion will reach USD, in connection with this, the production works will increase more than twice. Europe The union wants a piece of the action.
“We know that the shape of the economy, the net zero economy and where it will be located, will be decided in the coming years. And we want to be an important part of this net zero industry that we need globally,” said von der Leyen.
It will temporarily relax state aid rules for investments in renewable energy or decarbonisation industries until the end of 2025. offer did, at the same time of all EU countries France or subsidies on par with Germany offer he accepted that he could not.
In order to try and ensure a level playing field within the EU as well, von der Leyen said that member states, for example, have about 250 million left over from the EU’s post-pandemic recovery fund. billion EUR (272.3 billion dollars) said it could attract.
RESISTANCE
European Commission member states February 9-10He hopes to support his plan at a summit in , but it faces heated debate.
German Economy Minister Robert Habeck, who is preparing to lobby in Washington next week with French Finance Minister Bruno Le Maire, said he welcomed the proposals.
But some EU members have already rejected some parts of the plan, notably easing state aid rules and France and expressed opposition to the prospect of larger countries such as Germany being able to outperform others.
There has also been open resistance to earlier suggestions by some EU members that the plan could eventually lead to joint borrowing – with one senior EU diplomat saying the proposal was “very close” to rejection.
Some of the initial reaction from the EU on Wednesday was quite negative.
The center-right European People’s Party group, of which von der Leyen is a member, called the plan “too late, too little.”
Solar sector industry group 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 or even the impact they feel from the Inflation Reduction Act,” said Dries Acke, European Policy Director at SolarPower.
EU FOUNDATION
In the longer term, the Commission will propose the creation of a European Sovereign Fund to invest in emerging technologies.
In the coming months, the Commission will propose a Net-Zero Industry Act and a Critical Raw Materials Act that could streamline permitting processes and align standards to encourage local production, processing and recycling.
The bloc is heavily dependent on China for rare earths and lithium, which are essential materials for the green transition.
EU execution authorities also do more to make supply chains more sustainable and open markets for green goods free wants to make trade agreements and partnerships.
Meanwhile, German chip supplier ZF Friedrichshafen ( RIC:RIC:ZFF.UL ) and U.S. chipmaker Wolfspeed ( WOLF.N ) on Wednesday announced plans for an electric vehicle in the Saarland region. car will announce plans to build a chip factory. .
“Amidst concerns that the US wants to divert investment from Europe with the Anti-Inflation Act, we are showing a US firm looking to invest in Germany,” said a German government source.
($1 = 0.9180 euros)
Additional reporting by Marine Strauss, Kate Abnett, Sudip Kar-Gupta, Charlotte van Campenhout, Bart Meijer, Christian Kraemer; Written by Philip Blenkinsop and Ingrid Melander. Edited by Jane Merriman
Our standards: Thomson Reuters Trust Principles.
2023-02-01 19:48:42
Source – reuters
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