What’s in the EU Green Deal Industrial Plan?

Martin Banks

Belgium, (Brussels Morning Newspaper) The European Commission has presented its Green Deal Industrial Plan in response to the US Inflation Reduction Act. 

The aim is to boost European industries and innovation and make them fit for the green transformation of the economy and ensure global competitiveness. 

MEPs are expected to vote on a resolution on an EU strategy to promote industrial competitiveness, trade, and quality jobs at the next plenary session in Strasbourg (13-16 February).

Ursula von der Leyen, President of the European Commission, said: “We have a once-in-a-generation opportunity to show the way with speed, ambition, and a sense of purpose to secure the EU’s industrial leader in the fast-growing net-zero technology sector. Europe is determined to lead the clean tech revolution.”

Reaction to the announcement on Wednesday was mixed.

The EPP Group said it “welcomes” the move but “regrets that it did not come earlier and that it will have limited effect.”

A statement read, “The EPP Group has consistently advocated for industrial competitiveness to be a greater political priority and points out that “the regulation only” will be insufficient to facilitate the industry’s transition to carbon neutrality.”

EPP MEP Christian Ehler, group spokesman for the industry says: “With today’s plan, the European Commission initiates the beginning of its own end. At last, the Commission discovers its neglected ‘deal promise’ in the Green Deal. This should have already happened four years ago when the Green Deal was presented. The Commission has delivered on the Covid 19-response and on Fitfor55. However, now it is clear that the Commission has reached its intellectual and political limits when trying to make European industry competitive again.”

Chiara Martinelli, Director at CAN Europe, told this site, “While we welcome the focus on building a green industry, the EU’s proposal could not be more distant from the concept of just transition: The social dimension is reduced to ensuring the workforce is skilled to match the needs of the economy and there is no attention to inequalities – including in access to clean technologies and digitalization. We need to increase the competitiveness of clean economy businesses by immediately phasing out fossil fuel subsidies, including the free allocation of pollution certificates under the Emission Trading System. 

“We also need a transformation plan for each heavy-industry site with a reduction pathway for raw materials and energy consumption by 2030. It will be crucial to ensure taxpayers’ money is not given to industry without strict social and environmental conditionalities.”

Terry Reintke MEP, President of the Greens/EFA Group in the European Parliament, said, “The Green Deal is the engine of European competitiveness and the green industrial transition. 

“Any blockade of European environmental and climate legislation paralyzes us on the road to green transformation and industry also recognizes this. For independence from autocrats and fossil fuels, the European Union needs fresh money.  

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Brussels Morning is a daily online newspaper based in Belgium. BM publishes unique and independent coverage on international and European affairs. With a Europe-wide perspective, BM covers policies and politics of the EU, significant Member State developments, and looks at the international agenda with a European perspective.
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Martin Banks is an experienced British-born journalist who has been covering the EU beat (and much else besides) in Brussels since 2001. Previously, he had worked for many years in regional journalism in the UK and freelanced for national titles. He has a keen interest in foreign affairs and has closely followed the workings of the European Parliament and MEPs in particular for some years.
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