Brussels comes to the fore with the Green Deal Industry Plan for Sustainability

Brussels comes to the fore with the Green Deal Industry Plan for Sustainability

The European Commission wants to offer member states the opportunity to provide tax benefits to companies that invest sustainably. The proposal is part of the Green Reconciliation Industry Plan (GDIP), which will be submitted Wednesday and will be held by NOS.

To finance the GDIP, the Commission wants to create a new fund that will be partially filled with money from the European Corona Recovery Fund. Money from the new fund can also be used by member states to get grants and loans to make their economies greener.

The EU had previously launched a program called RePowerEU. Here, too, funds are available to make European industry more sustainable.

reaction to the American plan

The GDIP is seen as the European response to the US Inflation Reduction Act (IRA). This is the Biden administration’s $700 billion investment package aimed at lowering inflation while making US industry more sustainable. Half of the amount is reserved for making the sector more sustainable.

The EU sees the IRA as unwanted state aid. For example, Americans can get more than $7,000 off when purchasing an electric car made in the USA. This is at the expense of cars made in Europe. European countries fear that companies will move their factories to the US if the EU does not respond.

If it becomes easier for Member States to issue tax credits to companies, companies will find it more attractive to stay in Europe. It can lead to distorted faces within the EU. For example, a wealthy country like Germany can more easily set aside money to maintain its auto industry than a country like Italy.

come to europe

The draft plan also states that the Commission wants to bring the generation chains necessary for wind and solar power generation to Europe. This requires extracting less available raw materials in Europe and recycling them more.

According to the plan, 170 billion euros will be needed by 2030 for solar and wind power, batteries, heat pumps and hydrogen production.

The EU wants to differentiate itself from the rest of the world by maintaining high standards in terms of environmental requirements and working conditions. The EU also wants to speed up procedures for projects involving several Member States but benefiting the entire EU.

Ruth

The plan is not fixed yet, adjustments are still possible. The final plan is on the agenda of the EU summit with the heads of government on 9 and 10 February.

Prime Minister Rutte is not in favor of establishing a new fund with new money. “There is already a lot of money in circulation,” he said after meeting with Commission President von der Leyen and his Belgian counterpart, De Croo, on Tuesday. Rutte said some member states spend too much money on pensions, “money that would be better spent on innovation and green technology”.

French President Macron wants 380 billion euros to be used for the new fund. After meeting with Macron today, Rutte said she still thinks it’s too much. It wants all kinds of European glass to be used first. But he too wants a solution to the “unintended consequences” of the US IRA package.

Source: NOS

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