Report on EU policy initiatives for the promotion of investments in clean technologies

Summary:

Report published by the European Commission on 24 October 2023, setting out the action taken thus far by the European Union (EU) to promote and support the development and deployment of clean technologies. This is a preliminary assessment of measures taken by the EU to stimulate investment into clean technologies and the impact of the United States' (US) Inflation Reduction Act on investment.

Further information:

Clean technologies are deemed essential for the green transition, in tackling climate change and biodiversity loss. Their increased availability is seen as key for a successful implementation of the European Commission's European Green Deal. The development and production of advanced clean technologies require a diverse set of inputs. The EU has been seeking to build a regulatory framework and business environment that is favourable to that process. The Green Deal Industrial Plan is one of the key agendas aimed at enhancing competitiveness of the EU's net-zero industry, creating quality jobs and support the fast transition to climate neutrality.

The rest of the world is also engaged in the search for the best technologies to improve climate and environmental sustainability. Governments are adopting policy measures to mitigate their excessive dependencies, to support strategic supply chains vital for decarbonisation and to secure significant parts of the clean technologies market. This is happening against a backdrop of successive crises and growing political tensions that have changed the international contexts of these endeavours. They have exacerbated both the fragmentation and fragility of supply chains.

This Communication offers a preliminary assessment of the state of play and sets out what the EU has done to promote and support the development and deployment of clean technologies, reinforcing the Single Market, ensuring a level-playing field, supporting research and innovation, expanding its network of trade agreements and international strategic partnerships, and mitigating the impact of external developments. It also looks at the first results materialising from the US Inflation Reduction Act, as requested by the European Council. The European Commission underlines that other actors, notably China, also have active public support programmes in place that are likely to have a larger impact on the competitiveness of the EU clean tech sector.

• Primary Source

News

Reuters, 24/10/2023: EU says jury still out on U.S. green subsidy impact https://www.reuters.com/sustainability/eu-says-jury-still-out-us-green-subsidy-impact-2023-10-24/

EurActiv, 01/11/2023: US official defends Inflation Reduction Act against EU criticism https://www.euractiv.com/section/economy-jobs/news/us-minister-defends-inflation-reduction-act-against-eu-criticism/

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Official

European Commission: Press Release, 24/10/2023: Commission reports on EU policy initiatives to promote investments in clean technologies https://ec.europa.eu/commission/presscorner/detail/en/ip_23_5245

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