EU Net Zero Industry Act to combat US, China green energy initiatives
The EU is set to advance green energy proposal to combat increased rivalry from both the US and China.
To combat the rising industrial rivalry between the US and China, the EU is set to unveil highly disputed measures on Thursday to increase expenditure on clean technology, perhaps overcoming internal disagreements to include nuclear energy in the mix.
Brussels prioritizes green technologies, such as solar and wind, when it comes to additional funding and regulatory freedom in order to protect European enterprises.
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As part of its environmental plan to achieve its goal of having a "climate neutral" economy with zero greenhouse gas emissions by 2050, the European Commission (EC), the executive branch of the EU, will issue draft guidelines for a Net Zero Industry Act.
A disagreement within the EC over whether the new measures should include nuclear power, a low-carbon energy source, prevented the plan from being made public on Tuesday. Up until the final minute, a contentious dispute was anticipated.
A second historic draft of legislation will also be presented on Thursday, and it intends to ensure the supply of essential raw materials needed to maximize the electrical products that customers use today, such as smartphones and electric vehicles.
Since the US revealed a $370 billion "buy American" subsidy package for tax credits and renewable energy subsidies known as the Inflation Reduction Act (IRA) last year, the manufacturing of green technologies became more necessary.
The European Union is on the path of threatening domestic battery production and investments as prospected Battery Regulations holding very strict criteria and standers might push manufacturers to relocate factories to the US, as it is adopting more lenient laws with increased funding.
According to a report published by Politico in January 2022, the United States, under the IRA, has been pouring cash into battery production lines and manufacturing technology, which challenges the union's attempts to "encourage battery production at home in Europe, something that's meant to be driven by the Batteries Regulation."
Later that month, the head of the Confederation of German Employers' Associations, Rainer Dulger, told the Welt am Sonntag newspaper that Germany might be up against the ropes by 2030, facing a massive understaffing of five million, and it will not be able to make up for the deficit due to the expected decrease in taxes.
"The number of employees would be reduced by 5 million people by 2030," Dulger said.
It is also worth mentioning that when the IRA was first announced, French President Emmanuel Macron was furious as he argued that the IRA subsidies were posing a major threat to French competitors.
An AFP journalist reported he heard the French President tell US lawmakers and business people during a trip to Washington: "This is super aggressive for our business people."
"You will perhaps fix your issue, but you will increase my problem," he said, referring to the IRA.
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