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:
|Simpler regulatory framework||
|Access to funds||
|Improving the trade network||
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.