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EU unveils massive green energy incentive plan

February 01, 2023


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 repurposing 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 programmes 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.

[Philip Blenkinsop]

More: EU sets out green industry deal to take on U.S. and China

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