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EU sets out green industry deal to take on US, China

— The European Commission on Wednesday proposed allowing increased levels of state aid so that Europe can compete with the United States as a manufacturing hub for electric vehicles and other green products and reduce its dependence on China.

European Commission chief Ursula von der Leyen announced, as part of the plan, a re-purposing of existing EU funds, faster approval of green projects and drives to boost skills and to seal trade agreements to secure supplies of critical raw materials.

This is partly a response to multi-billion-dollar support programs of China and the United States, including the latter’s Inflation Reduction Act. “Major economies are rightly stepping up investment in net zero industries,” von der Leyen told a news conference. “What we are looking at is that we have a global playing field.”

Many EU leaders are concerned that the local content requirements of the $369 billion of green subsidies in the U.S. legislation will encourage companies to relocate, making the United States a leader in green tech at Europe’s expense.

The International Energy Agency estimates the global market for mass-produced clean energy will triple to around $650 billion a year by 2030, with related manufacturing jobs more than doubling. The European Union wants a part of the action.

“We know that in the next years, the shape of the economy, the net-zero economy, and where it is located will be decided. And we want to be an important part of this net-zero industry that we need globally,” von der Leyen said. She proposed loosening state aid rules for investments in renewable energy or decarbonizing industry, on a temporary basis, until end 2025, while recognizing that not all EU countries will be able to offer subsidies to the same extent as France or Germany.

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2023-02-03T08:00:00.0000000Z

2023-02-03T08:00:00.0000000Z

https://ktimes.pressreader.com/article/281659669188091

The Korea Times Co.