EC Unveils Green Deal Industrial Plan for Transition to Net Zero

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 Plan builds on previous initiatives and relies on the strengths of the EU Single Market, complementing ongoing efforts under the European Green Deal and REPowerEU. It is based on four pillars: a predictable and simplified regulatory environment, speeding up access to finance, enhancing skills, and open trade for resilient supply chains.In response to the US Inflation Reduction Act, the EU Commission is relying on a relaxation of EU state aid rules until the end of 2025, which would allow member states to grant their companies tax breaks. Since not all EU states would have the necessary financial resources, the remaining money from the Corona reconstruction fund could be used to grant tax breaks. In addition, the remaining EUR 250 billion from the reconstruction fund and the Repower EU programme, as well as a further €100 billion from the EU structural funds, could also be used in response to the US aid package. In general, companies from those sectors that are relevant for the transformation should be promoted. Companies that receive subsidies for investments in third countries should be able to receive the same amount of funds from the respective EU state in order to keep them in the country. On 9 February, the heads of state and government are to discuss the Green Deal industrial plan at a special summit. The EU Commission wants to present concrete legislative proposals before the next summit in March.European Commission President Ms Ursula von der Leyen said “We have a once in a generation opportunity to show the way with speed, ambition and a sense of purpose to secure the EU’s industrial lead in the fast-growing net-zero technology sector. Europe is determined to lead the clean tech revolution. For our companies and people, it means turning skills into quality jobs and innovation into mass production, thanks to a simpler and faster framework. Better access to finance will allow our key clean tech industries to scale up quickly.”