The President of the European Commission, Úrsula Von der Leyen, will present this Wednesday before the European Parliament her new industrial roadmap to deal with the climate plans of China and, especially, of the United States. A strata, according to the draft to which she has had access to this medium, focused on the elimination of obstacles to the use of climate technology and the creation of an ecosystem that the exodus of companies to these two countries. "Europe remains an attractive destination for sustainable investments", reads the text.
This is Brussels' response to the Biden Administration's Inflation Reduction Act to counter, in this case, Chinese investment in renewable technology. "Supply chains will start here," said the president of the United States in mid-January. US regulations establish substantial tax benefits for companies that bet on green technology and settle in North American territory. "We do not want a war of subsidies", reacted this Tuesday Paolo Gentiloni, European Commissioner for Taxation and Customs Union, Audit and Fight against Fraud.
Despite this, the community draft wants to deal with the 339.000 million euros put on the table by the White House to boost this sector. Brussels, yes, for the moment has not set a new ascendant to attract investment, but rather seeks to make life easier for the industry with fewer obstacles and more aid. According to the community text, with some figures not specified in its 17 pages, "Chinese subsidies distort the market."
In recent years, aid from the Asian giant doubles the Union with an investment portfolio of 280.000 million dollars, the Commission points out in the draft. "Europe and its partners must do more to combat the effect of these unfair subsidies and the prolonged distortion of the market," says the text, which could still be modified. Furthermore, Brussels will make use of a regulation on foreign subsidies to investigate whether the subsidies granted by third countries have an impact on the Community market.
"Europe and its partners must do more to combat the effect of these unfair subsidies and the prolonged distortion of the market"
The text released this week and that this Wednesday will be presented to the community chamber defines how the plan will be applied to the regulatory environment, access to finance, skills and trade under the title "A Green Deal industrial plan for the Net-Age." Zero ”and which details the announcement made for Von der Leyen herself at the Davos Forum at the beginning of the year. "We must respond more firmly," said the president of the European Commission in front of the rest of the world leaders in the great economic forum.
Measurements, yes; money no
Unlike its other two 'competitors', the European Union will not disburse any additional euro for this new economic and interest confrontation. Its strategy goes through "trade opening is an essential element of our strategy to maintain the EU's position as a world leader in net-zero technologies," the draft states.
An object that will simplify and expedite "permits for new clean technology production sites" with a temporary adaptation of the Union's state aid rules. Likewise, Brussels will promote a reduction in jobs for access to aid and subsidies "in an effort to prevent companies from leaving" the community territory.
A move in response to the giants of the wind and solar sector who have criticized the EU financing regime as being too complicated compared to the new US regulations. With this measure, the community managers seek to achieve in the sector "more than 170.000 million euros of accumulated investment until 2030 in the manufacture of net zero technologies for solar energy, water, battery and hydrogen".
However, the text highlights the economic gap between the different Member States. "Avoiding the fragmentation of the single market due to different levels of national support, facilitating the green transition across the Union and addressing the large gap between the financing currently available and the financing needs to expand the industrial network, we must also increase the financing of the European Union”. Despite the alert, the creation of a new community fund is not expected, at least until summer.
In return, the community regulations on subsidies and aid from the community pays with their industries will continue with the relaxation period that began with the pandemic derived from Covid-19 and prolonged with the Russian invasion of Ukraine. Now, the response to Biden's plan is the introduction of a "Crisis and Transition Temporary Framework" giving member states the ability to extend deadlines to complete renewable energy projects or grant tax breaks to attract new investment in production facilities. , as occurs in the Reduction Act of Inflation in the United States.
Control of raw materials
In 2020, the European Union updated its list of primary critical materials, including cobalt, tantalum, magnesium, tungsten, vanadium, indium, niobium, lithium or the famous rare earths. This Wednesday, Brussels will propose a Critical Raw Materials Law. “Net-zero manufacturing of EU technologies is only possible by ensuring access to relevant critical raw materials, including recycled raw materials, reducing Europe's dependence on third countries and boosting jobs and growth in the EU. circular economy”, states the draft.
“Net zero manufacturing of EU technologies is only possible if access to critical primary materials is guaranteed to reduce Europe’s dependency on third parties”
In addition, the community authorities propose the creation of a world association for critical raw materials and deploy trade defense measures in this area.
This Wednesday the detailed presentation of the plan is scheduled, which will later have to be endorsed by the leaders of each of the Member States. "The Commission asks the directors, governments and legislators to support the application of this plan and is ready to translate it into concrete proposals based on fundamental needs assessments before the European Council in March," says the draft.
