European Union Leaders Unite To Boost Green Industry With Targeted Support

Green energy seems to be the future and now the United States and China are competing in this sector. Most developed countries are planning to be completely carbon-free by 2030. Developing countries like India, are supporting the eradication of carbon emissions. If the world realizes this dream, then power could shift from oil companies to green tech products and their associated companies like Tesla and Nvidia. The United States and China currently are the leaders accounting for over 80% of these companies.

On Friday, the European Union, fearing to miss out on potential markets, agreed with its leaders to loosen the rules on state aid for investments in renewable energy, decarbonizing industries, and hydrogen or zero-emission vehicles, partly in response to the U.S. Inflation Reduction Act (IRA).

Under the IRA, $369 billion will be provided as subsidies for U.S. companies. China is consolidating its position by accounting for over 50% of global solar panels, wind turbine blades, and vehicle batteries. Recent data from the International Energy Agency estimates the global market for mass-produced clean energy technologies will triple to $650 billion a year by 2030 and Europe will want to be part of the cake. The European Commission is set to propose a Net-Zero Industry Act to speed up permits for green projects and a Critical Raw Materials Act to boost recycling and diversification. With this, the EU is set to be part of a future that looks green.