Europe Remaining Competitive on Net-Zero

The EU Commission has presented a Green Deal Industrial Plan to enhance the competitiveness of Europe’s net-zero industry and also support the fast transition to climate neutrality. The Plan aims to provide a more supportive environment for advancements of net-zero technologies and products which are required to meet Europe’s ambitious climate targets.

THE PLAN IS BASED ON FOUR PILLARS:

1. A predictable and simplified regulatory environment
2. Speeding up access to finance
3. Enhancing skills
4. Open trade for resilient supply chains

1. A predictable and simplified regulatory environment

The Commission will propose a Net-Zero Industry Act to identify goals and provide a regulatory framework suited for its quick deployment, promoting European strategic projects, and developing standards to support advancements of technologies across the Single Market. The Critical Raw Materials Act will also come into force in order to ensure access to materials that are critical for manufacturing key technologies associated with this green transition and also for the general reformation market design of electricity, which will help consumers benefit from lower costs of renewables.

2. Speeding up access to finance

The second pillar of the plan aims to speed up investment and financing for clean tech production in Europe. Help from the European Capital Markets Union as well as public financing, has the potential to unlock private financing - which will be required for this green transition. The EU Commission has also guaranteed a level playing field within the Single Market, while easing conditions to allow member states to grant aid to fast-track this green transition. They have also stated that existing EU funds will be used for financing the deployment, innovations and manufacturing of clean tech.

3. Enhancing skills

“The European Year of Skills” was introduced this year to help small-medium sized companies to address skill shortages in the EU and the third pillar of the Green Deal Industrial Plan will focus on this. Between 35-40% of jobs could be affected by the green transition so the EU Commission has proposed to establish “Net-Zero Industry Academies” which will allow for up-skilling and re-skilling programmes, in a people centred green transition.

4. Open trade for resilient supply chains

The fourth pillar is centred around global cooperation and allowing for trade to work in the green transition. There will be fair competition and open trade, building on engagements with the EU’s partners and the work of the World Trade Organisation. The EU Commission plans on ensuring a global security of supply by bringing together resource-rich countries and raw material consumers, through a competitive and diversified industrial base and Net-Zero Industrial Partnerships. The EU Commission also stated that they will protect the Single Market from any unfair trade in the clean tech sector.

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