In News
- European Commission recently presented a Green Deal Industrial Plan to enhance the competitiveness of Europe’s industry
About
- The Green Deal Industrial Plan involves building a simpler regulatory framework, providing faster access to funds, enhancing skills and improving the EU’s trade network.
- The proposal aims to bring changes in the following areas:
- Regulatory Framework
- The plan seeks to formulate a “Net-Zero Industry Act”, which will not only simplify rules but also speed up the issuance of permits for green projects
- It also includes a “Critical Raw Materials Act”, which will provide access to materials like rare earths that are crucial for developing net-zero technology.
- Access to funds
- Loosening of state aid rules to help EU’s 27 governments with investment in clean energy projects.
- The plan enables countries with minor economies to take money from existing EU funds.
- Aims to set up a “European Sovereignty Fund” in the future to give a structural answer to the investment needs.
- Enhancing skills
- The plan aims to establish “Net-Zero Industry Academies” that will provide up-skilling and re-skilling programmes in strategic industries.
- Trade network
- seeks to further develop the EU’s network of Free Trade Agreements to support the green transition.
- Implications
- Will increase europe’s competitiveness in green industries
- When seen together with USA’s Inflation Reduction Act (IRA) which will direct $390 billion towards clean energy projects the plan might trigger a global subsidy war.
Source: IE
