The context of the industrial energy transition is increasingly agitated around the world.
On one hand, all the debate about new regulatory requirements, emission inventories and climate impacts translated into financial reporting figures.
On the other hand, subsidies, high subsidies:
India: the Production Linked Incentive Scheme of INR 4500 crore (about US$550 million) to enhance competitiveness in solar PV and batteries
Japan: green transformation plans and raising of JPY 20 trillion (about 140 billion euros) through ‘green transition’ bonds
China: investment pipeline for cleantech exceeds $280 billion
United States: Inflation Reduction Act with around US$ 369 billion to subsidize green production
And last February 1st it was the European Union (EU) that launched its "Green Deal Industrial Plan for the Net-Zero Age" aimed at simplifying, accelerating and aligning incentives to preserve the competitiveness and attractiveness of the EU as a place for investments of the new net-zero industry. That is, supporting the transition of its industrial sector (and keeping it on European grouds ).
Existing lines of financing were reinforced:
Recovery and Resilience Facility (EUR 270 billion for industrial decarbonization)
Horizon Europe (EUR 40 billion for research and innovation)
Cohesion / Just Transition Fund (EUR 100 billion for green transition)
Brexit Adjustment Reserve (EUR 5.4 billion for energy intensive industries).
By covering 27 "member states", the Green Deal goes beyond the financial pillar:
transparent and simplified regulatory environment
fast and sufficient funding ("further relaxation of the State aid rules")
skills (qualification) and
free trade and resilience of supply chains
And 3 other interesting actions:
the "Critical Raw Materials Act" aimed at ensuring sufficient access to critical raw materials such as rare earths
the creation of "sandboxes" to accelerate the experimentation of disruptive innovations and new technologies
a reformulation of the electricity market, so that consumers also benefit from the lower costs of renewable energy.
All in all, a realignment of economic forces with new energy sources and more sustainable industrial processes. Certainly a new industrial revolution, with new leaders, new commercial axes, new patents and (re)use of natural resources.
Click on the image below (by Climate Adaptation Platform) for the press release and here for questions and answers .
