A wave of green protectionism ? To compete with US subsidies, Europe announces Net-Zero Industry Act

Concerned that European companies will move to the United States (US), which has set a $369 billion scheme to subsidise green production - the Inflation Reduction Act - Europena Union (EU) plans its own green subsidies.

Last January 17, European Commission President Ursula von der Leyen told a Davos audience that the 27-member bloc will propose a Net-Zero Industry Act to mobilize EU support for green industries. “We will especially look at how to simplify and fast-track permitting for new clean tech production sites” she said. Cut red tape in Europe and step up green investments. Details will be hammered out at a summit on Feb. 9-10 in Brussels.

As US offers consumer tax credits as well as incentives to US producers of green tech products, EU’s commitment is expected to be big.

It’s no secret the unease at the European Union related to its future economy, as it is continuously squeezed by trade practices coming from Washington and Beijing. A few weeks ago there were already signs of "worries" between US and Europe, particulary when France's Macron visited Biden in US. See here "Made in America vs. Buy European" by GZero or "Made in Europe" by Reuters.

According to CNBC, Spanish Prime Minister Pedro Sanchez also said that Europe should learn from the US when it comes to supporting its green industries. Click on the image below to read the details.