Galvanized by the U.S. Inflation Reduction Act, the European Union (EU) recently unveiled its own Green Deal Industrial Plan (GDIP).
The EU has come up with a four-point plan to prevent its ‘green’ businesses from being poached by the $369 billion U.S. subsidy bazooka:
- Fast-tracking permitting procedures for construction projects in “net-zero industries” and in the mining and processing of raw materials;
- Facilitating investments in renewable energy, industry decarbonization and production sites of “net-zero industries;”
- Investing in skills needed in the “net-zero industries,” and
- A more assertive trade policy focusing on new trade/cooperation agreements and active use of trade defense measures.
Will this do the trick? That depends on how understandable and usable this new plan will be for not only large companies but also small- and mid-size enterprises and scale-ups.
First, the GDIP needs to be approved by EU countries. This will take time given divergent opinions, especially on fiscal policy and free trade.
One thing is for certain – the GDIP will not offer a fresh batch of public money to the tune of the Inflation Reduction Act.
If you’re interested in learning more about the new EU plan and what it means for businesses, our European colleagues analyze the plan on our website.