The EU has launched a new industrial strategy aimed at boosting domestic industry and reducing dependence on foreign suppliers, particularly China. The centerpiece of the plan is to have 40% of the EU’s green technology domestically produced by 2030. The strategy aims to counteract the Inflation Reduction Act passed last year by US President Joe Biden, which incentivizes investment in green technologies manufactured in North America. Critics have accused the EU of protectionism and dirigisme for hand-picking some industries over others. However, EU leaders hope the strategy will accelerate the deployment of green technologies and phase out fossil fuels by mid-century. The plan identifies eight strategic sectors for both the short and long term, including solar, wind, batteries, and power grids. The approach proposed by the EU has fueled accusations of protectionism and dirigisme, two ideologies that run counter to the free-market principles the EU has long defended.
EU Aims to Boost Domestic Industry and Reduce Dependency on Foreign Suppliers
The EU has unveiled a new industrial strategy aimed at boosting domestic industry and reducing dependencies on foreign suppliers, particularly China, which currently holds a significant advantage in green technology. The strategy’s centerpiece is the goal of having 40% of the EU’s green technology domestically produced by 2030.
EU Aims to Produce 40% of its Climate Change Tech Domestically by 2030
The European Union is seeking to produce 40% of the technology necessary to combat climate change within its borders by 2030, according to its latest industrial strategy. The plan aims to boost domestic industry and reduce dependence on foreign suppliers, particularly China, which currently dominates the production of green technologies. The strategy also aims to counteract the Inflation Reduction Act (IRA) passed by US President Joe Biden last year, which incentivizes investment in green technologies manufactured in North America. The EU’s new “Net-Zero Industry Act” identifies eight strategic sectors for both the short and long term, including solar, wind, batteries, and power grids. Although criticized for its preferential treatment, the plan aims to speed up the deployment of green technologies.
EU’s Net-Zero Transition Plan Missing Next Steps
According to Euronews, the European Union’s industrial strategy, aimed at boosting domestic industry and cutting dependence on foreign suppliers, has a green element to it. However, some experts feel that the next steps are missing in the “Net-Zero Industry Act.”
Don’t miss interesting posts on Famousbio
