The European Commission has published its Clean Industrial Deal which aims to accelerate decarbonisation, while securing the future of manufacturing in Europe.
Under the deal, the Commission will adopt a new Clean Industrial Deal State Aid Framework that will allow for simplified and quicker approval of State aid measures for the roll-out of renewable energy, deploy industrial decarbonisation and ensure sufficient manufacturing capacity of clean tech.
It will also strengthen the Innovation Fund and propose an Industrial Decarbonisation Bank, aiming for €100bn in funding, based on available funds in the Innovation Fund, additional revenues resulting from parts of the ETS as well as the revision of InvestEU.
The deal framework will amend the InvestEU Regulation to increase InvestEU’s risk bearing capacity.
This will mobilise up to €50bn in additional private and public investment, including in clean tech, clean mobility and waste reduction.
The European Investment Bank (EIB) Group will also launch a series of concrete new financing instruments to support the Clean Industrial Deal.
The EIB will launch a Grids manufacturing package to provide counter-guarantees and other de-risking support to manufacturers of grid components.
There will also be a joint European Commission-EIB pilot programme of counter-guarantees for Power Purchase Agreements (PPAs) undertaken by SMEs and energy intensive industries.
Finally, EIB will launch a CleanTech guarantee Facility under the Tech EU programme powered by InvestEU.
The Commission is also taking actions to make our regulatory environment more efficient while reducing bureaucratic hurdles for businesses
The framework intends to drive competitiveness as it gives certainty and predictability to companies and investors that Europe remains committed to become a decarbonised economy by 2050.
The European Commission has also adopted an Action Plan on Affordable Energy to lower energy bills for industries, businesses and households.
It said the Act will speed up the roll-out of clean energy, accelerate electrification, complete the internal energy market with physical interconnections, and use energy more efficiently and cut dependence on imported fossil fuels.
President Ursula von der Leyen said: “Europe is not only a continent of industrial innovation, but also a continent of industrial production.
“However, the demand for clean products has slowed down, and some investments have moved to other regions.
“We know that too many obstacles still stand in the way of our European companies from high energy prices to excessive regulatory burden.
“The Clean Industrial Deal is to cut the ties that still hold our companies back and make a clear business case for Europe.”
European Energy chief executive Knud Erik Andersen described the deal as a “bold roadmap for how we can accelerate renewable energy in Europe”.
He added: “In a world marked by geopolitical tensions and intense competition, it is essential that the EU provides attractive regulatory framework for the green industry.
“Europe’s competitiveness must be strengthened, and affordable renewable energy is a key parameter in this effort. We are observing that consumer energy prices are, in many cases, higher than those of our main competitors.
“Hopefully EU’s new roadmap will put pressure on national governments to make energy cheaper for end-consumers.
“Today, renewable energy is one of the most heavily taxed products in Denmark, with only cigarettes being taxed at a higher rate.
“Therefore, it is positive that the plan stipulates that renewable energy in Europe should not be taxed higher than fossil fuels.
“This means that we will hopefully achieve an energy market where the most efficient energy forms dominate, benefiting the end-consumers.
“Onshore wind and solar are currently the most cost-effective ways to produce energy, and it is essential that this is reflected in consumer prices.”
WindEurope chief policy officer Pierre Tardieu added: “The Clean Industrial Deal is clear: electrification based on home grown energy is the way to go to boost our industrial competitiveness. Spot on.
“It says accelerating renewables permitting and grid expansion is essential. Yes.
“It’s great the European Investment Bank will help by boosting grid equipment manufacturing and de-risking renewable Power Purchase Agreements.”