Green technologies: “plan” of Ursula von der Leyen to win industrial battle

Faced with China and the United States, who want to attract European companies to their home with massive subsidies to green industry, the Commission sketches a community industrial policy.

By Virginie Malingre (Brussels, European office)

While China and the United States have launched hostilities to win the Battle of Green Technologies, the European Union (EU) is preparing its response. “We, the Europeans, have a plan,” said Ursula von der Leyen, in Davos, Tuesday, January 17 and it will allow the old continent to “position himself in the lead” in this race for innovation which will redraw the industry of Tomorrow.

In her speech, Ursula von der Leyen denounced “aggressive attempts” aimed at attracting European industrialists, especially those working in clean energies, “towards China and elsewhere”. It also mentioned the “concerns” that the Inflation Reduction Act (IRA) of the United States, this climate investment plan of $ 369 billion (342 billion euros) which provides for large aids for companies located in the United States. “We will not hesitate to open surveys if we believe that our markets (…) are distorted by such subsidies,” promised Ursula von der Leyen.

The community executive has started discussions with Washington, hoping to bring the United States to develop the IRA, but no one imagines, in Brussels or in capitals, whether they will substantially change the situation. “The reaction of other countries should not be:” Oh my God, you should not do that, it puts us in an unfair position “. Do it too. Everyone must do the same to accelerate this process even more “, also judged, in Davos, the special American climate emissary, John Kerry.

Race to subsidies

Admittedly, but the EU is fearing today that its industrialists give in to the sirens of Washington or Beijing and abandon the old continent. It is true that it combines weaknesses. First of all, its green industry is very dependent on China, India or the United States. “For rare earths, essential for the manufacture of key technologies [wind energy, hydrogen storage or batteries], Europe today depends at 98 %” of China, recalled Ursula von der Leyen. “To make green electricity in 2050, Europeans will have to spend 450 billion euros per year. This money should not be used to buy non -European products and export our jobs,” summarizes Thierry Breton, the commissioner at the internal market.

Furthermore, the EU is very slow since it is a question of authorizing certain state aid that can depend on strategic projects: thus industrial alliances generally take two years to emerge. Finally, the twenty-seven do not have the same means and a race for subsidies between them to attract investments would be devastating for the internal market. In fact, she has already started: over the next ten years, Germany plans to help its companies to make their climate transition up to 100 billion euros, the Netherlands about forty billion and France some 50 billion.

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/Media reports cited above.