Green Deal Industrial Plan
Green deal industrial plan was newly published on February 1st by European Commission. The plan aims to boost rapid transition of European industries to climate neutrality while maintaining their competitiveness. Drafting of this plan comes in accordance with EU’s long-term strategy of becoming climate neutral by 2050 and provides a more encouraging environment for industries to increase the use of net-zero technologies. The plan is based on 4 main pillars: a predictable and simplified regulatory environment, speeding up access to finance, enhancing skills, and open trade for resilient supply chains.
A predictable and simplified regulatory environment:
The Commission introduced a Net-Zero Industry Act to determine desired net zero capacities and provide regulations to support and facilitate fast implementation of net zero goals. Further initiatives including Critical Raw Materials Act and reform of the electricity market design will advocate a more simplified regulatory framework for industries.
Faster access to funding:
This pillar focuses on implementing policies to boost public and private investment and ease financing of clean tech production across EU. In addition, the General Block Exemption Regulation will be revised in order to increase notification thresholds and support green investments. The Commission will work with member states in short term, with a focus on REPowerEU, InvestEU and the Innovation Fund, on a bridging solution to provide fast and targeted support and in regards to mid-term prospect, the Commission will propose a European Sovereignty Fund in response to investment needs.
In parallel to green transition and deployment of net zero technologies, it is believed that 35-40 percent of jobs would be affected, thus, the 3rd pillar of the plan will focus on enhancing skills required for quality jobs. In order to achieve this, the Commission will propose to establish Net-Zero Industry Academies. Furthermore, access of third country nationals to EU labor markets in priority sectors will be considered and measures will be taken to foster and align public and private funding for skills development.
Open trade for resilient supply chains:
The 4th pillar of this plan relates to global cooperation and making trade work for green transition. It states that such practices should be done under principles of fair competition and open trade. This pillar makes emphasis on expansion of EU's network of Free Trade Agreements and other forms of cooperation with partners. It also expresses the importance of cooperation in world trade organization for green transition. In addition, formation of a new Critical Raw Materials Club will be explored to create a base for consumers and supplying countries and secure provision of enough resources in a diversified and competitive environment. Protecting EU single market from unfair trade and distorted competition is another function of this pillar.