The US offers multi-million dollar tax incentives for the expansion of renewable energies. The EU Commission is now presenting a concept for a European green industrial policy. Federal Minister of Economics Habeck is pleased.
The EU Commission wants to allow EU member states more financial support for investments that serve the “green” and digital transition. In a proposal for a “Green Deal Industrial Plan for the Net-Zero Age”, the Commission announced that states should “temporarily and in precisely defined areas” be given more flexibility in state aid, including in the form of tax breaks.
The new framework (Temporary Crisis and Transition Framework – TCTF) aims to “guarantee a level playing field with other economic areas and within the single market,” according to a statement. The Commission wants to prevent investments from being outsourced to third countries.
The initiative is seen as a response to the US Inflation Reduction Act. Among other things, this provides for tax incentives worth billions for the expansion of renewable energy sources. However, the paper mainly mentions Chinese state aid. When it comes to their national tax incentives, the member states are to be guided by a common framework that the Commission intends to draw up.
Federal Economics Minister Robert Habeck from the Greens spoke of a “very good proposal” that sets the right incentives for green transformation. The proposals are a response to the US’s multi-billion dollar subsidy program.
“We have a common goal: to advance the development of a green economy in order to become climate-neutral and to strengthen the European Union as an attractive, competitive location for investment and innovation,” said Habeck after the presentation of the proposals by EU Commission President Ursula von der Leyen. The green markets are already the lead markets of the near future. The Commission’s proposal sets “the right priorities” for this and fits in well with much of what Germany has proposed.
“Above all, we need faster procedures and better options for promoting the green technologies of the future. The Commission’s plan is a very good basis for discussion with our European partners in the coming weeks,” said Habeck. It is in our own interest to strengthen the competitiveness and innovative power of our industrial location.
