The EU will present plans to lead the green industrial revolution

Later today, the European Commission "will present the main points of its strategy to ensure that its industry can compete with the US and China in the production of clean technology products and the acquisition of raw materials needed for the green transition", according to Reuters. It said the Commission would publish proposals for the Net Zero Industry Act and the Critical Materials Act as part of its "Green Deal Industrial Plan". The news portal explains: “The EU is setting a target of producing at least 40 % of the clean technology products it needs by 2030, in part by streamlining green project permitting and investment support. The Commission will propose simpler state aid schemes that will allow subsidies to support green technologies with the possibility of providing tax breaks and using existing EU funds." Today's proposals are also brought closer by the Financial Times: "Brussels will introduce restrictions on the import of Chinese green technologies, reduce the number of applicants for public contracts and will make it harder for buyers to access subsidies." He adds: "According to people familiar with the situation, the Commission's trade directorate is concerned that proposed changes to the public procurement rulebook could violate international rules." Bloomberg reports that the EU is "ready to assert its claims in the cleantech race, while trying to resist the US'. The article states: “The proposals, put forward in response to concerns that key industries for the transition to new technologies may flee Europe to the US after a landmark subsidy package, have raised fears of a cleantech arms race. Brussels think tank Bruegel called the bloc's planned response "blatantly protectionist" in a recent report. It added: "The plans still need to be approved by parliament and member states and could be amended before they can be implemented." The output explains that the plans will include eight "strategic net zero" technologies, from solar and wind power to batteries, heat pumps, electrolyzers and carbon capture and storage, but not nuclear power. Politico reports on the fears of some "Brussels bigwigs" that the EU is about to "abandon its free market beliefs to compete with China and the US in the clean energy arms race." Another Politico article reports on today's critical mineral proposals: "Conservationists are spooked by Brussels' plans to increase extraction of critical minerals, but advocates say it's necessary to meet the bloc's environmental goals."
Meanwhile, Reuters reports on ongoing reactions to the Commission's electricity market reform proposals, published on Tuesday: "The European Commission's plans to reorganize the bloc's electricity market have brought relief to some, while disappointing countries that have campaigned for more sweeping reforms , which they say is necessary to protect against volatile fossil fuel prices. The countries' mixed response sets the stage for complex discussions among the 27 EU countries, which must negotiate and approve final reforms with the [European] Parliament." In other EU news, Politico reports that Germany "tried to defuse a growing conflict with the EU by saying in a letter sent to the European Commission on Wednesday proposed changes to legislation relating to green transport, according to an official who saw the letter". It explains: "The intention is to create a loophole for the continued sale of combustion engine cars after 2035 despite EU plans to ban them from this year." The proposed loophole would apply to combustion engines "powered only by e-fuels – synthetic alternatives to fossil fuels made from hydrogen and CO2", the material states. Another Politico article is headlined: "Lobbying Efforts to Save EU Fossil Boilers."

Philip Blenkinsop, Reuters "Carbon Brief"