European Union promotes green technologies to respond to the US and China

The European Union (EU) announced this Thursday its plans to put pressure on companies in the bloc to produce more clean technology, as a way to face competition supported by state aid, particularly in USA and Chinese.

The European Commission, the executive arm of the EU, assured industries that produce green technologies, such as solar and wind energy, that obtaining permits and authorizations for manufacturing processes will become easier under the new plan.

The institution expects that at least 40% of green technology will be produced in the EU by 2030.

These objectives are embodied in the Net Zero Emission Industry Law, which seeks to be the central pillar in the EU’s commitment to become a global economy. “climate neutral” with zero greenhouse gas emissions by the year 2050.

“We will continue to trade with our partners. Not everything will be done in Europe, but more must be done in Europe.” Commission vice-president Frans Timmermans told reporters in Brussels.

This proposal was expected for Tuesday of this week, but a sharp divergence within the Commission on the eventual inclusion of nuclear energy – a low-carbon energy – delayed the announcement.

In the end, nuclear energy appears in the text, but the provisions only apply to fourth-generation reactors, which do not yet exist, but which would reduce waste to almost zero.

Another proposal launched on Thursday by the Commission aims to secure the supply of critical raw materials to produce goods that consumers use every day, including smartphones.

Responses to Washington and Beijing

The production of green technology acquired greater urgency after the United States last year unveiled a huge program, for 370,000 million dollars, to privilege products of the country, and that includes subsidies for clean energy.

European companies have warned that subsidies in other countries coupled with lower energy bills could tempt companies on the continent to move to Asia or North America.

In addition, European institutions have complained that the US plan will discriminate against industry in Europe.

Part of the EU’s response to the US plan included a controversial relaxation of Europe’s rigid rules on subsidies, especially for green technology projects.

For this reason, a week ago the Commission authorized the countries of the bloc to match the subsidies offered in other countries.

By 2030, the cleantech sector is expected to be worth about 600 billion euros (about $630 billion) worldwide, roughly more than three times current levels.

With its proposal on raw materials, the Commission seeks to ensure access to these materials, many of which it currently imports from China, to avoid being dependent on a country for a specific product.

China currently dominates many sensitive sectors for the EU, such as semiconductors, critical minerals, batteries and solar panels.

“We have resources in Europe. We must find the means to extract them.”said the European Commissioner for the Internal Market, Thierry Breton.

The text says that the EU should not depend on a single country for more than 65% of imports of any strategic raw material already by 2030.

But there would be room for maneuver if the EU has a “strategic partnership on raw materials” with a country that is not part of the bloc.

Source: AFP