Ursula von der Leyen announced the Green Industrial Plan in Davos

The European Commission has a green industrial plan that will make Europe the home of clean technology and industrial innovation, EC President Ursula von der Leyen said in her speech at the World Economic Forum in Davos. We have a plan, the Green Industrial Plan, which will make Europe the home of clean technology and industrial innovation on the way to zero carbon dioxide emissions, Lajen pointed out. That plan should be part of the European response to the American program of subsidies and tax breaks in the field of green technology.

Leyen pointed out that the Green Industrial Plan rests on four pillars: regulatory environment, financing, skills and trade.

We need to create a regulatory environment that allows us to expand rapidly and create favorable conditions for the sectors that are key to achieving the goal of zero net emissions. These include wind power, heat pumps, clean hydrogen and storage.

Ursula von der Leyen, EC President

For this purpose, the EC will propose a new law for an industry with zero greenhouse gas emissions following the model of the law for semiconductors.

The new law on zero-emission industry will identify clear targets for clean technology in Europe by 2030.

Ursula von der Leyen, EC President

She added that the purpose of this law will be to direct investments in strategic projects throughout the entire supply chain and that the priority will be how to simplify and speed up the issuance of permits for the production of clean technologies. In parallel, the EC will study how to speed up the approval of important clean technology projects of common European interest, how to facilitate financing and simplify the access of small businesses and all member states to these projects.

As part of the second pillar of the Green Industrial Plan, the EU intends to strengthen investment and financing of clean technology production. In that direction, the EC will propose a temporary adaptation of the state aid rules.

These include tax incentives and targeted aid for production in the strategically important clean technology chain to counter the risks of relocation of production facilities to third countries due to foreign subsidies.

However, Leyen points out that the EC is aware that state aid cannot be a complete solution because only a few member states have enough fiscal capacity to subsidize the industry, which would then lead to fragmentation of the internal market. It is therefore necessary to strengthen funding at EU level to avoid fragmentation of the single market and to support the transition in all Member States, not just some.

It will provide a structural solution to strengthen resources for research, development and strategic industrial projects, which are key to achieving zero emissions. But since this will take some time, we will consider a solution to provide quick and targeted support where it is most needed, Laien indicated.

For the third pillar of the Green Industrial Plan, she indicated “the development of skills, because even the best technologies are only valid if there are qualified people who are able to manage and use them.”

Leyen points to the facilitation of equal and open trade, which will benefit all, as the fourth pillar. Therefore, the EU will push for trade agreements with countries such as Canada, Great Britain, Mexico, Chile, New Zealand and Australia. 

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