The European Commission is seeking to allocate more than €100 billion to support clean production in the EU as part of a new Clean Industrial Deal.
The Clean Industrial Deal aims to accelerate decarbonisation and secure the competitiveness and resilience of European energy-intensive industries like steel, metals, and chemicals, as well as the clean-tech sector.
It seeks to reinforce Europe’s commitment to becoming a decarbonised economy by 2050 through a simplified and faster approval of state aid measures for the introduction of renewable energy.
In a statement released on Wednesday, the Commission said that the plan supports European industries facing high energy costs and global competition.
President of the Commission Ursula von der Leyen said that she wants to implement the Clean Industrial Deal within the first 100 days of the Commission’s term as a priority to ensure EU competitiveness and prosperity.
Von der Leyen went on to say that the deal focuses on European industrial innovation and production at a challenging time of low demand for clean products, with some investments moving to other regions.
“We know that too many obstacles still stand in the way of our European companies from high energy prices to excessive regulatory burden,” she added. “The Clean Industrial Deal is to cut the ties that still hold our companies back and make a clear business case for Europe.”
The Commission also intends to strengthen its Innovation Fund, which is one of the world’s largest funding programmes for the demonstration of innovative low-carbon technologies.
Additionally, it is proposing the establishment of an Industrial Decarbonisation Bank, aiming for €100 billion worth of funding, based on the funds available in the Innovation Fund; additional revenues from parts of the ETS (the world’s first international emissions trading system) ; and the revision of the InvestEU programme, which supports sustainable investment, innovation and job creation in Europe.
The Commission said it will present an action plan for the automotive industry in March and a second action plan on steel and metals in Spring. Other actions are planned for the chemical and clean tech industry.
Teresa Ribera, executive vice-president for Clean, Just and Competitive Transition at the Commission, said that the plan is designed to create jobs, develop skills, and open opportunities for all European.
She added: “Our plan provides the stability and confidence investors need, unlocking capital, expanding clean tech markets, making energy more accessible, and ensuring a fair, competitive landscape where businesses can thrive.”
Wopke Hoekstra, commissioner for climate, net zero and clean growth said that Europe needs to be “cleaner, more competitive, and self-sufficient.”
“We’ve got a plan, and we’re putting it into action, starting today, to ensure a prosperous European future,” he continued.
