Green Deal Industrial Plan

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