EU Pitches Green Tech at Davos 2023
Launched in 2020, the EU #GreenDeal is a set of overarching policy initiatives aimed at reaching #NetZero by 2050. During the World Economic Forum 2023 (#WEF2023) in Davos, European Commision President Ursula von der Leyen took to the stage to make a pitch for the Green Deal.
The ultimate goal of the Green Deal is promote the #GreenTransition so that the EU is basically net neutral in terms of emissions of greenhouse gases by 2050.
Since 2020, several measures have been put in place in a bid to reach that goal. Packaging regulations have come into force to promote recycling and the #CircularEconomy. The EU Emissions Trading System for the aviation sector has been revised to make it effective and will include ships in the future.
The Renewable Power for the European Union or #REPowerEU for short aims to provide EU with affordable, secure and sustainable energy. To view of the inescapable trend towards Electric Vehicles (#EV), the EU Battery Alliance has been set up.
At Davos 2023, Ursula von der Leyen highlighted that the #CleanTech sector will be worth more than USD 650 billion by 2030. Japan will raise EUR 140 billion in Green Bonds to invest in advanced green technologies. India has put forward the Production Linked Incentives scheme to promote the local manufacturing of PV, batteries and other clean energy solutions.
With regards to the US Inflation Reduction Act, Von der Leyen expressed the wish for transatlantic dialogue to explore synergies with EU Clean Deal. Competition promotes innovation but rather than compete on subsidies, it is better to compete on a level-playing field. With the Green Deal Industrial Plan, EU ambitions to become the home of Clean Tech based on four pillars:
- Regulatory Framework
- Financing
- Skills
- Trade
EU is mulling a Net Zero Industry Act in line with CHIPS Act and will be complementary to the Critical Raw Materials Act. It will catalyze the Green Transition while mitigating dependencies on foreign sources. She concluded that “the story of Clean Tech will be written in Europe.”