New development in Green Deal Industrial Plan
Published 14 February 2023
Category: Impact and ESG
On 9 February 2023, a summit was held in the European Council in which, among other things, a green industrial plan and other measures to secure EU’s competitiveness going forward were discussed.
This comes on top of previous discussions in the EU Commission on a possible Net-Zero Industry Act and adaption of the European state aid rules, which we touched upon in a previous update. Further, it comes on top of the EU Commission’s communication last week of a Green Deal Industrial Plan for the Net-Zero Age. These initiatives come as an extension of the adaption last year by the USA of a historical climate legislation (the Inflation Reduction Act) as well as China’s increased support to green industries which have left a pressure on EU to act.
At the summit, the European Council pledged to support an adaption of the state aid rules. The aim is temporary, proportionate but also targeted support to green industries in Europe through initiatives such as tax credits as well as faster and more simple procedures. Focus is mainly on sectors that are seen as strategic in the green transition as well as negatively affected by high energy prices or foreign subsidies. However, it is yet unclear exactly which sectors this will affect.
Apart from adaption of state aid rules, the European Council also concluded that work must urgently be continued in the following areas:
- Increase flexibility of EU funds to secure access to financial means,
- Ensure access to critical raw materials and a simpler regulatory environment,
- Boost skills in order to meet future challenges of labour shortage and transformation of jobs, and
- Ensure public as well as private investments in order to close investment gaps
The meeting summary, conclusions and other relevant material from the European Council can be accessed here.
Next step: Towards the next summit in March, the EU Commission shall prepare concrete proposals. Further, the EU Commission has been invited to report to the European Council on a regular basis about EU’s competitiveness and the impact of a possible State aid policy.