EU Counters US Climate Game Changer with Its Own Green Deal
EU's Green Deal: Boosting clean tech innovation & growth with state aid & sovereignty fund to retain companies in the region
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The European Union (EU) has responded to the United States' efforts to bolster its energy transition by unveiling its own plans to support the green industry. European Commission head Ursula von der Leyen announced at the World Economic Forum (WEF) that the EU would utilize state aid and a sovereignty fund to prevent companies from relocating to the U.S. The EU's Green Deal industrial plan aims to position Europe as a hub for clean technology and innovation. Von der Leyen emphasized the need to simplify permitting for new clean tech production sites and maintain competitiveness with the incentives available outside the EU.
The International Energy Agency (IEA) and Larry Fink, CEO of BlackRock, have hailed the U.S. Inflation Reduction Act (IRA) as a game changer in driving investment into cleaner energy and combating climate change. The IRA, signed into law by President Joe Biden, represents the most significant climate deal since the 2015 Paris Agreement. Meanwhile, U.S. climate envoy John Kerry stressed the importance of substantial financial investment from governments and companies to address climate change effectively.
