Who has revealed the “Green Deal Industrial Plan”?

EU Green Deal Industrial Plan

European Union (EU) has revealed the “Green Deal Industrial Plan”. EU included the environmental issue in its policies by including the principle of “polluter pays” in the Single European Act signed

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Context: European Union (EU) has revealed the “Green Deal Industrial Plan”.

EU Green Deal Industrial Plan Background

EU included the environmental issue in its policies by including the principle of “polluter pays” in the Single European Act signed in 1987.
European Green Deal: It was presented on 11 December 2019 and sets the goal of making Europe the first climate-neutral continent by 2050.
- It aims to set the EU on the path to a green transition, with the ultimate goal of reaching climate neutrality by 2050.
- It supports the transformation of the EU into a fair and prosperous society with a modern and competitive economy.
Target: European Climate Law enshrines in binding legislation the EU’s commitment to climate neutrality and the intermediate target of reducing net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels.

About Green Deal Industrial Plan

Aim: Enhancing the competitiveness of Europe’s net-zero industry and supporting the fast transition to climate neutrality.
Objective: To provide a more supportive environment for the scaling up of the EU’s manufacturing capacity for the net-zero technologies and products required to meet Europe’s ambitious climate targets
It is based on four pillars:

Pillars	Details
Simpler regulatory framework	The plan seeks to formulate a Net-Zero Industry Act, which will not only simplify rules but also speed up the issuance of permits for green projects, such as renewable energy generation arrays, carbon capture and renewable hydrogen production facilities. Critical Raw Materials Act: To provide access to materials like rare earths that are crucial for developing net-zero technology.
Access to funds	Aid rules will be loosened in order to help EU’s 27 governments with investing in the clean energy projects. It allows countries to take money from existing EU funds. Setting up European Sovereignty Fund: To give a structural answer to the investment needs.
Enhancing skills	To establish Net-Zero Industry Academies that will provide up-skilling and re-skilling programmes in strategic industries. Plan focuses on developing the skills needed for well-paid quality jobs, as 30-40% of the existing jobs might get affected due to green transition.
Improving the trade network	It seeks to further develop the EU’s network of Free Trade Agreements and other forms of cooperation with partners to support the green transition. To establish trade deals for raw materials and clean tech with like-minded partners.

USA’s Inflation Reduction Act (IRA)

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.
European Union expressed concerns regarding its possibly “discriminatory” provisions.