What Is Green Deal Industrial Plan Proposed By EU?
In This Article, ”What Is Green Deal Industrial Plan Proposed By EU?” we will understand – What Is Green Deal Industrial Plan?, What Is European Commission?, etc.
Tightening the Net Report: Net Zero Carbon Targets
Context of Green Deal Industrial Plan
- The European Union on February 1, 2023 come up with “Green Deal Industrial Plan”.
- The European Union(EU) has introduced a ‘Green Deal Industrial Plan’ to expand its environment-friendly and energy-conservative ways of business and trading.
- The Green Deal Industrial Plan by the EU has come just a few months after the United States announced its Inflation Reduction Act (IRA), which contains billions of dollars of tax cuts for clean energy and climate change programs with incentives for US-based manufacturing.
- The EU members have claimed that IRA’s tax credits and subsidies to green product makers would put European companies at a disadvantage and might lure them to the United States.
What Is Green Deal Industrial Plan?
- Regulatory Framework
- Faster access to funds
- Enhancement of skills
- Improvement in the trade network.
- By regulatory framework, the Green Deal Industrial Plan seeks to formulate a strategy for the “Net-Zero Industry Act.”
- This will not only simplify rules for traders to trade and operate freely but will expedite the process of trade permits and insurance for green projects, such as renewable energy generation arrays, carbon capture and renewable hydrogen production facilities.
Faster funds arrangement
- As per the official Green Deal Industrial Plan, the rules will be relaxed to facilitate easier investment and raising of funds for the EU’s 27 governments to operate and work on clean energy projects.
- The proposal has been formulated to help European countries that are not as deep-pocketed as France or Germany by offering subsidies and allowing the usage of existing EU funds.
Enhancement of skills
- The ‘Green Deal Industrial Plan’ aims to create a “Net-Zero Industry Academies” that will provide up-skilling and re-skilling programmes in strategic industries.
- The deal plan also emphasises on the significance of free and open trade and aims to further ‘develop EU’s network of Free Trade Agreements and other forms of cooperation with partners to support the green transition.
What are the main elements in the Green Deal Industrial Plan?
The Green Deal Industrial Plan is based on four pillars:
- A predictable, coherent and simplified regulatory environment, which supports the quick deployment of net-zero manufacturing capacities;
- Faster access to sufficient funding, by boosting investments while avoiding the fragmentation of the Single Market;
- Skills, by ensuring that the European workforce is skilled in the technologies required by the green transition; and
- Open trade for resilient supply chains, based on cooperation with the EU’s partners to ensure diversified and reliable supplies and fair international competition.
What Was European Green Deal?
- On the sidelines of annual Madrid Climate talks 2019, the European Union had come up with an announcement on additional measures it would take on climate change. It was Called the European Green Deal.
- Through European Green Deal, The EU had promised to bring a law, binding on all member countries, to ensure it becomes “climate neutral” by 2050.
What is Climate neutrality?
- Climate neutrality, sometimes also expressed as a state of net-zero emissions, is achieved when a country’s emissions are balanced by absorptions and removal of greenhouse gases from the atmosphere.
- Absorption can be increased by creating more carbon sinks like forests, while removal involves technologies like carbon capture and storage.
Overview Of European Commission
The European Commission is the EU’s politically independent executive arm. It is alone responsible for drawing up proposals for new European legislation, and it implements the decisions of the European Parliament and the Council of the EU.
Role: Promotes the general interest of the EU by proposing and enforcing legislation as well as by implementing policies and the EU budget.
Members: A team or ‘College’ of Commissioners, 1 from each EU country.
Year established: 1958
Location: Brussels (Belgium)
What does the Commission do?
The Euro Commission is the sole EU institution tabling laws for adoption by the Parliament and the Council that protect the interests of the EU and its citizens on issues that can’t be dealt with effectively at national level
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