The United States caught up with the European Union last year when the now infamous Inflation Reduction Act (IRA) was passed. What is essentially an investment plan for the Americans, according to Europe, threatened to disrupt the international level playing field.
Tomorrow the European Commission will propose two pieces of legislation that form the core of its green industrial plan, the European response to the American IRA. Central to the climate-neutral industry act (Net-Zero Industry Act) will be the objective of producing at least 40 percent of the green technology needed to realize the climate transition in Europe by 2030.
“Permit procedures will be accelerated. State aid rules will be simplified. And we will allow tax reductions and the flexible use of European funds,” von der Leyen summed up. In addition, the Commission is proposing a Critical Raw Materials Act to ensure access to rare earth metals and other materials that are considered crucial for the production of important green technologies. “These minerals are used for phones and electric vehicles, for chips and batteries, for solar panels and wind turbines,” von der Leyen said. “These cannot function without critical raw materials.”
Currently, Europe is highly dependent on third countries for the supply of strategic raw materials. “If we want to be independent, we urgently need to strengthen and diversify our supply chains, working with partners who are on the same wavelength,” said von der Leyen.
