Top Posts
Death toll from Mokwa flood rises to 153
Scientists say nearly 40% of the world’s glaciers...
Nigerian government seeks alignment of NDC climate action...
German court dismisses climate case against RWE
WHO Climate Change action plan approved
Report: World likely to breach 1.5°C limit in...
At Bonn climate talks, Brazil demands early deals...
Researchers warn Africa could face 113 million climate...
LAPO MfB launches tree-planting initiative to fight climate...
Stiell says new NDCs are about growth, antidote...
EcoNai Newsroom
  • Newsround
  • Nigeria
  • Africa
  • World
World

EU prepares law to help green industry

by Segun Ogunlade January 18, 2023
written by Segun Ogunlade January 18, 2023
443

The European Union has announced that it is preparing a law that will make life easier for the green industry will be backed up with state aid and a European Sovereignty Fund to keep businesses from moving to the United States.

According to reports, the steps would be part of the EU’s Green Deal industrial plan that would help Europe in its bod to become the home of clean technology and industrial innovation as it also strives to achieve net-zero carbon emissions by 2050.

To achieve these, the EU is set to put forward a new Net-Zero Industry Act, said Ursula von der Leyen, president of the European Commission.

“The aim will be to focus investment on strategic projects along the entire supply chain. We will especially look at how to simplify and fast-track permitting for new clean tech production sites,” von der Leyen was quoted to have said.

The EU is worried about the possibility of European companies moving to the United States, which has a $369 billion scheme to subsidise green production and there is a need to keep the European industry attractive and also keep up with competitive offers and incentives that are currently available outside the EU.

Read also: WEF launches new initiative to unlock climate finance

Out of 672 billion euros of state aid approved by the Commission this year, 53% was in Germany, 24% in France, and 7% in Italy, a situation that is worrisome to some EU members that believe that more state aid such as these will only create more problems for smaller countries as the biggest EU economies can afford much more support than others.

“I don’t think massive new state aid models do anything good for Europe,” Danish Economy Minister Troels Lund Poulsen was quoted to have said.

However, the plan was welcomed by several EU countries which were quick to underline the importance of EU funding to even the playing field.

“It has to be implemented through European mechanisms that ensure equality within the European space. The smaller European countries cannot lose to the larger countries in an internal competition,” Portuguese finance minister Fernando Medina said, expressing support for the fund.

Also, Italian Finance Minister Giancarlo Giorgetti said the EU financing scheme should be modelled on the bloc’s existing 800 billion euros recovery fund, which offers grants and loans, and on the EU’s loans-based SURE programme to support employment.

Meanwhile, Von der Leyen did not give the size of the planned Sovereignty Fund, the idea she first floated in September. Such a fund does not yet have the support of all EU governments, notably Germany.

She said that both the Sovereignty Fund, as well as an intermediate pool of cash that could be mobilised faster, would offer both grants and loans in targeted support as the Commission was now working to identify the needs of the green industry.

Story was adapted from Reuters.

EUGreen IndustryLaw
0 comment 0 FacebookTwitterPinterestEmail
admineconai

previous post
WEF launches new initiative to unlock climate finance
next post
Brazil Minister says country lack world aid to fight climate change

Related Posts

Scientists say nearly 40% of the world’s glaciers...

June 3, 2025

German court dismisses climate case against RWE

May 28, 2025

WHO Climate Change action plan approved

May 28, 2025

Report: World likely to breach 1.5°C limit in...

May 28, 2025

At Bonn climate talks, Brazil demands early deals...

May 23, 2025

Guterres raises alarm over rapid Himalayan glacier melt

May 17, 2025

Study shows two-thirds of global warming caused by...

May 8, 2025

Weather expert warns climate change to hit agriculture...

May 5, 2025

Trump dismisses authors of major climate report

April 30, 2025

New UN report shows Indigenous Peoples sidelined in...

April 25, 2025

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

  • Facebook
  • Twitter
  • Instagram
  • Linkedin
  • Bloglovin
  • Vimeo

@2021 - All Right Reserved. Designed and Developed by Eco-Nai+

EcoNai Newsroom
  • Newsround
  • Nigeria
  • Africa
  • World