EU Considers €100 Billion Investment in Green Transition
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The European Commission has unveiled a new plan to implement eco-friendly technologies in industry and the energy sector. This initiative aims to attract €100 billion in public and private investments, with the EU ready to provide financial guarantees of €1 billion from its budget. These details are part of the recently released package titled “Clean Industrial Plan for Enhancing Competitiveness and Decarbonization in the EU.”
The plan proposes the establishment of an Industrial Carbon Bank, which will allocate up to €100 billion for green technology initiatives. Funding will come from the EU Innovation Fund, revenue from the Emission Trading System (ETS), and resources from reallocating the InvestEU program budget.
To draw private investors, the Commission plans to offer guarantees up to €1 billion through existing annual EU budgets until 2027.
Priority will be given to accelerating the adoption of green technologies in the energy sector and energy-intensive industries, with changes expected to impact the EU steel industry by 2025 and the cement industry by 2026.
The Commission believes that increasing “clean energy” production will help address rising energy costs in Europe. Additionally, the plan emphasizes supporting a circular economy, particularly through recycling and reintegrating rare earth materials into production.
Furthermore, the European Commission has promised to simplify current environmental regulations to help businesses adapt to new requirements.
At a press conference in Brussels, Deputy Commissioner Stefan Sejourne highlighted three funding sources: private investments, public investments, and EU funds. He stated that this plan will serve as a foundation for Europe’s green transition but did not clarify how it differs from previous initiatives, only mentioning that it will build upon existing approaches.
