Source: Energy & Management Powernews
Overwhelmingly, industry representatives are responding positively to the EU Commission's plans to promote renewable industries in Europe. Much, however, is still too vague.
The German Ministry of Economics signaled clear satisfaction with the EU Commission's ideas for a "Green Deal Industrial Plan" (GDIP) published on February 1. Economic Minister Robert Habeck (Greens) described the paper as a "very good proposal": "We have a common goal: to drive forward the development of a green economy to become climate neutral and strengthen the European Union as an attractive, competitive investment and innovation location. Green markets are the lead markets already of the near future. The Commission's proposal sets the right priorities for this."
Focal points that, according to the German Renewable Energy Federation (BEE), would now have to be quickly filled with life: "We expect that, in the course of concretization, clear specifications and measures for greenhouse gas reduction, for strengthening market access and financial opportunities for the production of green technologies will be established," said BEE President Simone Peter.
Three-digit billions would also be needed in Europe for the ecological transformation. Therefore, in addition to the already planned investments in the Green Deal and the 300 billion euros earmarked in the Repower-EU program, the European Sovereignty Fund must also be advanced and state aid law reformed to prevent investments from migrating to third countries.
The plan also shows a "clear gap" in the area of operating cost support: This instrument is precisely the element that makes the U.S. green subsidy program IRA attractive to investors and attracts companies to the United States. The goal of regulatory changes, he said, must be to create strong domestic demand, which can also be achieved through ambitious standards.
"Investment turbo" demanded
The German Association of Energy and Water Industries (BDEW) is now also calling for an "investment turbo" and a reform of state aid law. Even more important, however, is the creation of a regulatory framework that "unleashes investment in clean technologies." In particular with regard to the hydrogen ramp-up, more courage and pragmatism are needed.
"The EU Commission should provide clarity on the definition of renewable hydrogen as soon as possible, so that companies can make important investment decisions. Moreover, this definition must not be too restrictive, otherwise the industry-related ramp-up of electrolysers will be blocked."
Associations and industry representatives had long called for a European response to, among other things, the United States' Inflation Reduction Act (IRA), which earmarks more than $360 billion (about 330 billion euros) to support the development of renewable industries.
Japan also wants to make the equivalent of around 140 billion euros available for the green energy transition, and China's continued high subsidies for the industry are already causing a significant distortion of competition in the eyes of many European representatives.
The EU Commission wants to counter this with the "Green Deal Industrial Plan" four priorities:
- A significant simplification of the regulatory framework with simplified, accelerated licensing procedures, securing the supply of critical raw materials as well as a reform of the electricity market design.
- Faster and simpler financing options.
- An even stronger focus on promoting the recruitment of skilled workers.
- Stabilizing supply chains and raw material supplies through trade agreements and cooperation.
The proposals are now the basis for further deliberations by EU leaders.
The complete Green Deal Industrial Plan proposal paper is available on the Internet.
Author: Katia Meyer-Tien
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