EU advances Clean Industrial Deal with new support measures

Photo: WAM

The European Commission has shared an update about the first actions taken under the Clean Industrial Deal. This comes just a few months after the deal was first announced.

The Clean Industrial Deal is very important because it helps the European Union (EU) stay competitive while also working to reduce pollution. This deal will help the EU reach its goal of fighting climate change by 2040.

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In today’s update, the Commission talked about the first steps they have taken, the progress made so far, and what still needs to be done. One big step is the Clean Industrial Deal State Aid Framework, which was approved last week. This plan helps companies invest in clean energy and switch to greener technologies.

The EU also agreed to make the Carbon Border Adjustment Mechanism (CBAM) simpler. This means 90% of importers will not have to deal with complicated rules, which will reduce paperwork and make it easier to follow the new system. This is just the first step. The EU will look at CBAM again by the end of the year and suggest stronger rules to make it better.

The Commission also shared ideas on how to stop carbon leakage. Carbon leakage happens when companies move production to places with weaker pollution rules, which hurts the environment.

Besides the State Aid Framework and CBAM update, the Commission gave advice on tax benefits. These tax benefits will encourage companies to invest in clean technologies and help industries lower pollution. Some examples are faster tax deductions and tax breaks.

The Commission also gave guidance on how to use new EU rules for renewable energy. These rules will help increase the use of clean energy sources like wind and solar, and lower energy costs.

Other important actions linked to the Clean Industrial Deal include making energy more affordable, increasing production of parts for energy grids, supporting agreements to buy clean power, starting a pilot project for an Industrial Decarbonisation Bank, and preparing a new plan for the chemicals industry. The EU is also talking with different groups in each sector to hear their views and ideas.

Finally, the EU will soon share its plan for the next Multiannual Financial Framework. This plan will explain how the EU budget will support the move to cleaner industry in the coming years.

These steps show the EU’s strong commitment to building a cleaner, greener future for industry and fighting climate change.