The European Union (EU) plans to provide permits, regulatory support, and easier access to public and private funding for specific strategic green technologies. This move aims to meet at least 40% of the EU's annual deployment requirements, according to a draft document seen by Reuters.
The regulation's primary goal is to ensure that the net-zero technology manufacturing capacity in the EU is adequate, with fears of European companies relocating to the United States (US). The US government currently has a $369 billion scheme aimed at subsidising green production.
The EU legislation will support strategic green technologies, including solar photovoltaic and solar thermal, onshore and offshore wind, battery systems, heat pumps, geothermal energy, renewable hydrogen, biomethane, nuclear fission, and grid technology. An annex attached to the document explains that these technologies have reached a readiness level of at least eight in accordance with the criteria outlined by the European Strategic Energy Technology (SETIS) Plan.
The draft regulations did not include sustainable aviation fuel (SAF) as a possible candidate for the support scheme. The EU and US share similar policy aims on SAF, but their approaches and configurations differ. The US Inflation Reduction Act includes support for SAF. The new EU rules would also support auctions to deploy renewable energy sources, adapt innovation funds, and allow easier access to public-private procurement.
In January, the President of the European Commission, Ursula von der Leyen, announced that these measures would be part of the EU's Green Deal industrial plan. This plan's objective is to make Europe a hub for clean technology and industrial innovation, with a target of achieving net-zero carbon emissions by 2050.
If the EU fails to achieve its goal by 2030, the European Commission will recommend additional measures to cover the identified gaps. The EU is expected to release the draft document in the coming weeks.
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