EU plans to defeat China and US in clean tech battle in 2023

European Commission head Ursula von launched the “Green Deal Industrial Plan (GDIP)” at the World Economic Forum to compete with the US and China in clean technology. According to the International Energy Agency (IEA), renewable energy production technology will have a worth of $650 billion by 2030. The EU can take the lead in the industry sector through investment opportunities.

GDIP aims to develop Europe as “the home of clean tech” and it focuses on four pillars: regulatory environment, financing, skills, and trade. The first pillar ensures to bring funding and permits for renewable energy sectors such as solar, wind, and clean hydrogen. In support of the above pillar, the Industry Act (goals) will be formed to achieve clean tech by 2030 that will target project investments and supply chain. The second pillar’s main objective is to increase funding and investment in clean technology production by competitive offers as compared to other than the EU. The last two pillars aim to enhance worker skills by facilitating them and to promote open fair trade globally.

The European Commission was worried about clean tech subsidy of $369 billion targeted for North American-made products which is known as US Inflation Reduction Act (IRA). As this subsidy can lead to discrimination between union-based firms. Concerning the above conditions, the EU said “Our incentive programs should be fair and mutually beneficial.”

Overall, the EU had a balanced position between geopolitical interests and new advanced initiatives, while maintaining focus on existing ones. It’s not understandable whether Green Deal Industrial Plan will achieve its goal of clean tech leader, but it will maintain a balance before closure of this opportunity.