🇪🇺 vs 🇺🇸 - Europe´s answer to the Inflation Reduction Act (#IRA)?

Today, the European Commission presented the Green Deal Industrial Plan to enhance the competitiveness of Europe's net-zero industry.

Let´s look at the key components:

🔎 Development of a simpler regulatory framework aimed at creating net-zero industrial sectors, a key step for the energy transition and the design of the energy market.

🌞 Speeding up of investment for #cleantech production in the EU. The EC aims to guarantee a level playing field within the single market while allowing EU Member States to grant necessary aid to fast-track the green transition.

👩‍🏫 Establishment of Net-Zero Industry Academies to promote up-skilling and re-skilling programmes in strategic industries, allowing for the green transition of the European jobs market.

🌍 Creation of the Critical Raw Materials Act and Club to limit unfair dependencies at the global stage, targeting global trade and resilient supply chains.

#Analysis

An important and expected step. Europe has been under a lot of pressure since the passing of the IRA in the US. The impact of the Green Deal Industrial Plan is tbd. For now, as you can see from the clear lack of numbers above, it is rather vague. While it stresses that it will match the IRA, there are no specific funding/subsidy amounts in the bill yet. I have my doubts it will rank up the capital needed to match the US. Most funding in the EU in national, hence the punch of this package will really depend on Member States passing appropriate regulation themselves. Having said all of this, this marks a key step and will undoubtedly lead to a range of follow-up measures and following.

Watch this space.

All relevant links in the comments.