Can EU’s new industrial strategy accelerate Germany’s green transition?

(EurActiv, 11 Mar 2020) With its new industrial strategy, the European Commission wants to promote climate-friendly innovations, unlocking billions in investment into clean technologies. However, it remains unclear how companies will be supported in the transition. EURACTIV Germany reports.

The Commission presented its industrial strategy on Tuesday (10 March), outlining measures aimed at safeguarding the competitiveness of European companies as they invest in technologies to comply with the EU’s 2050 climate neutrality objective.

But environmentalists were sceptical that the EU initiative will make a difference. Agora Energiewende, a climate think-tank, said Germany should adopt its own measures regardless of the EU industrial strategy.

Indeed, the Commission document contains few new instruments to finance green investments, saying only that Brussels intends to update EU competition rules and state aid law by the end of next year in order to support the green transition.

Agora Energiewende says this could eventually pave the way for “differentiated agreements” with some industrial sectors like steel, cement or chemicals. Based on a fixed carbon price, those would make investments in clean technologies more attractive, Agora said, citing hydrogen for the steel industry as an example.

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EurActiv, 11 Mar 2020: Can EU’s new industrial strategy accelerate Germany’s green transition?