European Union policymakers on Tuesday announced new rules to boost local production of solar and wind power, fuel cells and other clean technology equipment and help European industry compete with rivals in China and the United States. agreed.
The bloc aims to set a 2030 target of producing 40% of the products needed to reduce greenhouse gas emissions. These include renewable energy, nuclear power, heat pumps, electrolyzers, and other decarbonization technologies, including carbon capture.
Europe is becoming increasingly dependent on China, with China predicted to have 80% of the world's manufacturing capacity in areas such as solar power generation. They also worry that $369 billion in green subsidies under the US Inflation Control Act (IRA) will encourage European producers to relocate.
MEPs and Belgium, which holds the semi-annual rotating EU Presidency, have reached an agreement on the Net Zero Industry Act (NZIA) after a day of consultations.
The law is at the heart of the EU's efforts to make it a world leader not only in reducing greenhouse gas emissions, but also in producing the necessary clean technologies.
Likely to come into force later this year, the NZIA proposes to streamline the granting of permits for projects that boost manufacturing in the EU, with permits issued within 18 months.
Public institutions purchasing clean technology products will need to make choices based not only on price, but also on environmental standards and whether more than 50% of their supplies come from a single source.
EU countries must apply non-price criteria to 30% of tenders for renewable energy projects.
“The most important message is that Europe is responding to the IRA for the first time,” Christian Ehrler, who heads the group of parliamentarians, said at a press conference. It added that it would also help meet emissions targets. Tuesday.
Achieving the 40% production target will be particularly difficult for solar power, given that domestic manufacturers supply less than 3% of the EU's panel installations and are fighting for survival. The EU's wind energy sector is much stronger, but Chinese companies are also starting to gain a foothold.
The NZIA also gives the EU greater flexibility to support local production and coordinates with various EU funds, but it will not accumulate new funds comparable to the IRA. The European Sovereignty Fund that had been discussed never materialized.
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