Annexes to COM(2023)62 - Green Deal Industrial Plan for the Net-Zero Age - Main contents
Please note
This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2023)62 - Green Deal Industrial Plan for the Net-Zero Age. |
|---|---|
| document | COM(2023)62  |
| date | February 1, 2023 |
In order to assist the Member States in implementing the RRF and its REPowerEU component, the Commission published today the Guidance on Recovery and Resilience Plans. The Guidance provides flexibility to adjust the plans to the current context, and to prepare REPowerEU chapters. It acknowledges issues arising from the disruption of supply chains, energy prices and inflation and offers to Member States effective solutions to maintain the ambition of the initial plans. The Commission strongly encourages Member States to include in their modified RRPs simple and effective measures to provide immediate support to companies and boost their competitiveness:
·(i) one-stop-shops for the permitting of renewables and net-zero projects to accelerate, digitalize and streamline the processes for obtaining the necessary approvals and permits for building and operating net-zero-tech projects; coupled with dedicated strengthening of administrative capacity to eliminate administrative bottlenecks in permitting;(ii) tax breaks or other forms of support for green net-zero technologies investments undertaken by businesses, taking the form of either a tax credit, an accelerated depreciation or a subsidy linked to the acquisition or improvement of green investment assets;
·(iii) and investing in equipping the workforce with skills necessary for this industrial transition.
The European Investment Bank (EIB) Group will support the achievement of all the objectives of the RePowerEU Plan with additional loans and equity 16 . The Commission and the EIB Group will continue working together to explore how the EIB Group could step up its clean tech and other activities contributing to the Green Deal.
InvestEU Programme
The InvestEU Programme is well placed to boost net-zero investments in the EU. InvestEU is the Union’s instrument for catalysing private investments in EU priority areas. Through the EIB, the EIF, the EBRD and 14 other implementing partners, the EU supports public and private investments in net-zero tech and industrial innovation. Examples of projects that can be supported are RDI of battery technologies, critical raw materials recycling, demonstration plants for manufacturing materials in the supply chain of electric vehicle batteries, hydrogen propulsion technologies, innovative advanced biofuels plants, advanced manufacturing technology equipment in steel processing. InvestEU can mobilise over EUR 372 billion of financing – public, but mainly private - through the backing of the EU budget guarantee of EUR 26.2 billion.
To date the Commission has signed InvestEU guarantee agreements for a total value of EUR 21 billion. On the back of these guarantee agreements, the EIF has already signed InvestEU guarantee agreements with 48 financial intermediaries from 19 Member States for EUR 2.3 billion lending to European SMEs and small mid-caps, and 54 agreements with funds from 14 Member States for equity investments worth EUR 1.9 billion 17 .
Examples of InvestEU-supported investments by the EIB and the EIF in the area of clean technology:
·A EUR 37 million investment by the EIB in a p-CAM (precursor cathode active material) commercial demonstration production plant. P-Cam is used in the supply chain of electric vehicle batteries (high tech lithium-ion battery cells).
·A EUR 315 million loan by the EIB to a joint venture for technology and product developments of hydrogen automotive propulsion technologies, and active safety systems.
·A EUR 32 million investment by the EIB in support of R&D projects of a manufacturing company in electrification technologies for agricultural machinery and power transmission systems for tractors and off-road vehicles.
·A EUR 101 million guarantee by the EIF to a fund in support of early-stage technology companies (venture capital), high growth potential industrial companies; and decarbonisation sector companies (renewable energy projects and sustainability companies).
·A EUR 125 million loan to a greenfield production facility for cathode materials. The cathode materials will be supplied to battery manufacturers of high-tech lithium-ion batteries that are primarily used in electric vehicles.
To ensure a timely delivery on the objectives of the Green Deal Industrial Plan, InvestEU procedures, should be simplified, and its products aligned to current needs. Guarantee agreements and financial products need to be aligned with the revised state aid framework, while specific provisions of the GBER will significantly simplify state aid aspects for national compartments in InvestEU. The Commission will continue to work with the EIB, the EU’s bank, and other partners to address in an efficient and timely way the financing needs of priority projects, such as IPCEIs.
Funding through InvestEU is heavily frontloaded, as the biggest part of the funding comes from NextGenerationEU. By end 2023 EUR 14.83 billion of the EU guarantee needs to be committed, leaving only EU 11.37 billion for the period 2024-2027. At the same time, one can expect a significant increase in the demand for InvestEU support, given the revised eligibility conditions foreseen under the forthcoming Temporary Crisis and Transition Framework (TCTF). In particular, lifting current financing limitations on manufacturing projects in the areas covered by the TCTF would give rise to an increased demand and use of the EU guarantee by implementing partners. Therefore, the Commission is assessing how the overall funding for InvestEU could be increased, in particular for the period covering 2024 until 2027.
Innovation Fund
The Innovation Fund supports the development and first-of-a-kind deployment of technologies and solutions that decarbonise energy intensive industry, boost renewable energy and energy storage (including batteries and hydrogen) and strengthen net-zero supply chains by supporting the manufacturing of critical components for batteries, wind and solar energy, electrolysers, fuel cells and heat pumps. Over the decade, an estimated EUR 40 billion will be available under the Innovation Fund.
The revised and upgraded Emission Trading System directive, as agreed at the end of 2022 as part of the Fit for 55 package, allows the Innovation Fund to subsidise, through competitive bidding, 100% of the funding gap for scaling up clean tech deployment and manufacturing. The Innovation Fund can thus act as a European one-stop-shop for such support, thereby reducing the difficulties for investors in stacking different revenue streams and funding sources.
The Commission will launch in autumn 2023 a first auction – or competitive bid - for supporting the production of renewable hydrogen. Winners of this auction will receive a fixed premium for each kg of renewable hydrogen produced over a period of 10 years. This will have a similar impact as the production tax credit in the US IRA, the difference being that the premium, based on the received bids, will make EU support cost-effective, fast and administratively light. Terms and conditions for this first pilot auction, with an indicative budget of EUR 800 million, will be announced in June 2023. This pilot auction will be followed by further auctions or other forms of support for hydrogen production and use that contribute towards the REPowerEU hydrogen targets, thereby covering the EU domestic part of the Hydrogen Bank.
Further building on this experience, the Commission considers extending the new competitive bidding mechanism for scaling up manufacturing of components for solar and wind energy, batteries and electrolysers, based on an analysis of EU net-zero sector needs, market sizing, and potential project pipeline. Also here, the Innovation Fund support would take the form of a production subsidy, instead of the 60% share of relevant cost that is the current practice of the Fund.
The EU emission trading system revenues will increase in the coming years. The greater part of this amount will constitute national revenues that Member States must use for climate action. The Commission encourages Member States to devote a share of those revenues to scaling up manufacturing of net-zero technologies. A share of the increased ETS revenues could also underpin the reinforcement of an efficient EU net-zero investment vehicle, such as the Innovation Fund. 18
Numerous funds are thus available, mostly geared to innovation and deployment. The Commission is exploring avenues to achieve greater common financing at EU level to support investments in manufacturing of net-zero technologies, based on an ongoing investment needs assessment Delivering on a comprehensive European approach will be essential in order to preserve the Single Market from fragmentation and realise maximum synergies and scale. The Commission will work with Member States in the short term, with a focus on the afore-mentioned instruments – REPowerEU, InvestEU and the Innovation Fund - on a bridging solution to provide fast and targeted support where it is most needed, in complement to the temporary and targeted state aid changes outlined above. While the operationalisation of these different elements may not come at the same time, we are committed to deliver on this comprehensive European approach.
For the mid-term, the Commission intends to give a structural answer to the investment needs, by proposing a European Sovereignty Fund in the context of the review of the Multi-annual financial framework before summer 2023. The aim is preserving a European edge on critical and emerging technologies relevant to the green and digital transitions, from computing-related technologies, including microelectronics, quantum computing, and artificial intelligence, to biotechnology and biomanufacturing and net-zero technologies. This structural instrument will build on experience of coordinated multi-country projects under the IPCEIs and seek to enhance all Member States’ access to such projects, thereby safeguarding cohesion and the Single Market against risks caused by unequal availability of state aids. The Commission will work with Member States in the design of the Sovereignty Fund to ensure that it addresses their respective needs.
2.2.3 Private funding
By far the greater part of the investments needed for the net-zero transition will have to come from private funding. Public funding can crowd-in private investments, but it will not be sufficient to close the investment-gap needs. For successful net-zero transformation, we need vast amounts of private-sector financing in particular, financing raised through capital markets from a broad range of investors, including small retail investors as well as big institutional ones. Well-functioning capital markets and the sustainable finance framework are thus essential. The EU must ensure that its capital markets can support the necessary volume and variety of funding for EU companies, in particular in strategic industrial segments.
The EU must intensify its efforts to create a fully developed Capital Markets Union (CMU). The CMU aims at increasing the size of individual capital markets and their cross-border integration to improve financing and investment opportunities for individuals and companies, including those operating in the clean tech sector.
A deeper and truly integrated single market for capital would provide EU companies the means to finance themselves, to scale up and become less dependent on bank financing and to obtain financing to manage the green transition. Advancing the Capital Markets Union is thus an essential contribution to the Commission’s political objectives of green and digital global competitiveness of European firms and the EU’s open strategic autonomy.
Achieving a fully integrated EU capital market requires greater ambition and commitment from all key stakeholders in reaching swift agreement on the Commission’s legislative proposals implementing the 2020 CMU Action Plan.
The EU sustainable finance framework supports investors and businesses efforts to scale up their investments that would be aligned with the European Green Deal targets. EU sustainable-finance policies will support the green transition by making private funding of green projects and companies easier to obtain and more attractive, as recalled in the Renewed Sustainable Finance Strategy 19 .
2.3.Enhancing Skills
The green transition must be people-centred and inclusive to ensure equitable and just outcomes, generating quality jobs and leaving no-one behind. The European economy counted 4.5 million green jobs in 2019 20 up from 3.2 million in 2000. The green transition will amplify demands for new skills at all levels, requiring a large-scale up-skilling and re-skilling of the workforce. The battery industry alone estimates it will need an extra 800 000 workers by 2025. In the next decade, there will be fierce competition for talents. The productivity of our industry, the prosperity of our society and our ability to meet the net-zero objectives will depend on our ability to retain and attract workers. This is why the third pillar of the Green Deal Industrial Plan must focus on skills - green and digital, at all levels and for all people, with inclusiveness of women 21 and youth 22 at the heart of the Plan.
Demand for talent is acute. Labour shortages, as proxied by the vacancy rate, 23 have doubled in sectors considered key for the green transition 24 between 2015 and 2021 and green transition technical skills are in growing demand 25 . As it is estimated that between 35% and 40% of all jobs would contribute to the twin transition, technical - including digital - skills requirements and education levels in the green economy outpace the economy overall 26 . Overall labour productivity is higher in the green sectors, with for example productivity in the clean energy sector about 20% higher than on average across the economy, rendering green skills even more important for future prosperity. 27
The EU is taking action to address skills related challenges posed by the twin green and digital transition through its overarching framework - the European Skills Agenda , which runs in synergy with the European Education Area 28 . The European Pact for Skills, which recently celebrated its second anniversary, supports 14 large-scale partnerships in European industrial ecosystems helping them to equip the workforce with the skills necessary for the transition towards a carbon-neutral and digital economy. The partnerships promote coordinated action by companies, workers, public authorities, social partners, education and training providers and employment services. Over 1,000 members have so far signed up, including large multinational companies, SMEs, local training providers, and chambers of commerce. Collectively, they have pledged to help upskill and reskill 6 million people. In addition, the Clean Energy Industrial Forum commits to stepping up efforts and investments in the development of skills.
The Digital Education Action Plan, the Digital Decade and the Structured Dialogue for Digital Education and Skills that took place in 2022 have prepared the ground for speeding up actions in reforming education systems and the provision of basic and advanced digital skills across the economy and at all ages. This provides a strong starting point to ensure that the society and businesses alike, can use digital skills for more precision and efficient use of natural resources, for a more positive impact on the environment.
The recent Communication on harnessing talents in Europe’s regions supports policies to help acquire and develop the skills required for the green transition in all EU regions 29 .
The European Year of Skills 2023 is a unique opportunity to develop the skills needed to thrive in a rapidly changing economy and to step up efforts. It is time for the EU and its Member States to be bolder and more ambitious in bringing about step changes in the education and skills agenda, and to implement opportunities presented by the EU framework 30 :
·The Commission is working with Member States to set targets and indicators to monitor supply and demand in skills and jobs in the sectors relevant for the green transition. A gender gap continues to prevail in the net- zero technologies sector. For example, women are under-represented in vocational and higher education in Science, Technology, Engineering, and Mathematics (STEM) sub-fields that are highly relevant for the energy sector. 31 In the renewables sector, women account only for one third of the workforce 32 , so there is a clear opportunity for harnessing female talent there.
·The Commission is working with Member States and the higher education sector to implement the European strategy for universities 33 , which plays a key role in ensuring future-proof skills. The EU provides substantial financial support for this purpose, including through the Erasmus+ European Universities initiative (EUR 1.1 billion).
·Furthermore, we need to attract, and retain top talent to Europe, especially in Science, technology, engineering, and mathematics (STEM). We need to open new pathways for international STEM students and researchers to come to Europe.
·A large-scale skills partnership for onshore renewable energy under the Pact for Skills will be established by February 2023. The partnership will identify commitments and targets and develop a vision of concrete upskilling and reskilling needs for the renewable energy sector in Europe.
·A Heat Pumps skills partnership will be established by the end of this year and efforts are under way to create a skills partnership on energy efficiency.
·Modelled on the European Battery Alliance Academy 34 , the Commission will propose to establish Net-Zero Industry Academies to roll out up-skilling and re-skilling programmes in strategic industries for the green transition, such as raw materials, hydrogen and solar technologies, The Commission will initiate an Academy to offer on- and offline trainings for sustainable construction with a focus on the use of biobased materials, circularity and digital technologies.
Validation of skills, alongside efforts to support the recognition of qualifications across Member States and from third countries, as well as labour mobility policies, can facilitate matching people’s skills to employers’ needs. People learn in multiple ways and in different contexts outside of formal education and training structures. In order to support this:
·As part of the EU’s Skills Agenda, the Commission will facilitate recognition of qualifications. This could allow for a “fast track” to recognition and reduce administrative by supporting quick authentication of qualifications by employers and training providers.
·The Commission will further consider how to combine a ‘Skills-first’ approach recognizing actual skills with existing approaches based on qualifications, in the interests of EU mobile citizens and third-country nationals.
·In particular, to attract talent from outside the EU, the Commission is examining a skills-based approach to facilitate access of third country nationals to EU labour markets in priority sectors through the development of an EU Talent Pool and present a proposal on recognition of qualifications of third-country nationals.
More can be done to support people in acquiring new skills. The EU has robust policy frameworks to financially support skills development, with Council Recommendations supporting a number of skills reforms in the areas of individual learning accounts and micro-credentials, to quality and effective apprenticeships and vocational education and training. Making these policy reforms deliver concrete results in a coordinated fashion across Europe requires both public and private funding to align, which could include:
·The General Block Exemption Regulation ceiling for aid to SMEs for training will increase from EUR 2 million to EUR 3 million.
·Measures providing opportunities to skill workers as part of an IPCEI will be taken into account in assessing state aid compliance of such projects. 35
·To stimulate increased investment in training in new net-zero technologies and production processes, the Commission will explore the treatment of training expenditure by companies as an investment rather than as an expense or operating cost.
EU funding is also available. The Multiannual Financial Framework 2021-2027 and NextGenerationEU support investments of around EUR 64.8 billion in skilling, re-skilling and up-skilling. 36 Out of those EUR 64.8 billion, cohesion policy, through the European Social Fund + (ESF+) is the main EU instrument to support investments in skills and is making EUR 5.8 billion available for green skills and green jobs. European Regional Development Fund (ERDF) complements ESF+ with investments in skills, education and training, including infrastructure. The Just Transition Mechanism (JTM) supports with EUR 3 billion training and skills development of workers to adapt to the green transition.
The Recovery and Resilience Facility is providing a significant financial support. 14 Member States are including measures for training on green skills and jobs in their national Recovery and Resilience Plans that, together, amount to around EUR 1.5 billion.
2.4.Trade and resilient supply chains
The EU welcomes initiatives conducted across the world on the road to climate neutrality and environmental sustainability. The goal of net zero can be best achieved if net-zero technologies incentives are underpinned by principles of fair competition and open trade. The fourth pillar of the Green Deal Industrial Plan consists of global cooperation and making trade work for the clean transition.
The EU draws competitive and political strength from being a trading powerhouse. The EU remains an attractive destination for global investment. We would have not achieved our resilience and overcome the challenges of the past years without the efficiencies that trade brings and the win-win partnerships we developed with third countries. At the same time, an increase in unfair and coercive practices have required us to develop new tools and enforce our rights, in order to maintain a level playing field 37 . Altogether, this reflects the EU’s drive towards Open Strategic Autonomy.
Trade openness is an essential element of our strategy to maintain the EU’s position as a leader in net-zero technologies. Trade policy keeps the Single Market connected to growth poles outside of our continent while securing access to the inputs critical for the green transition. On the one hand, open trade creates opportunities for our industry by opening new export markets and creating economies of scale. On the other hand, it provides access to raw materials, parts, components as well as services that our industry needs, given that two-thirds of our imports consists of intermediates.
The EU will work with its partners to promote stability in international trade and strengthen legal certainty for investors and companies by continuing to support the World Trade Organization (WTO), including through its reform. The WTO has a role in supporting climate neutrality by providing a forum for deliberations on trade aspects of the green transition, by clarifying how to promote green investments in a manner that minimises trade distortions, as well as by reinforcing disciplines on subsidies that negatively impact both trade and the climate.
The Commission will also continue to advance the EU’s network of Free Trade Agreements, while making the most of those already in place through effective implementation and enforcement. In particular, the Commission will work to conclude negotiations with Australia by summer 2023 and make significant progress with India and Indonesia, while exploring possibilities with other partners in the Indo-Pacific. The Commission will also put forward for ratification the agreements with Chile, Mexico and New Zealand and seek to make progress with Mercosur. The Commission will also aim to finalise its Economic Partnership Agreement with Kenya.
The Commission will support the clean transition by continuing to develop other forms of cooperation with partners, beyond more traditional trade agreements. The Trade and Technology Council with the US, and that under preparation with India, establish a new tool for cooperation. Through the work of the dedicated EU-US Task Force on the Inflation Reduction Act, the EU and the US are working towards pragmatic solutions to EU concerns, with a view to maintaining and reinforcing Transatlantic value chains and ensuring positive cooperation on the shared interest to achieve net-zero.
The EU has developed Sustainable Investment Facilitation Agreements (SIFA) in particular with partners in Africa, in order to make it easier to attract and expand investments while integrating environment and labour right commitments. Climate and energy is a key area for partnerships under Global Gateway, the EU’s contribution to narrowing the global investment gap worldwide. Moreover, the EU will support developing countries in their efforts to adapt and comply with the EU’s autonomous sustainability requirements. The EU will further develop its policy dialogue and concrete actions on research and innovation with the Union for the Mediterranean and the African Union to promote co-operation on renewable energies and green hydrogen 38 . The Commission proposes that investments in other key partnership areas such as digital or transport should be further aligned with the goal of net-zero. The Commission will continue to support sustainable investments in energy, transport and digital connectivity through the implementation of Economic and Investment Plans for the Western Balkans, the Eastern Partnership and the Southern Neighbourhood.
A number of new initiatives will also be developed:
·We will work with like-minded partners to establish a Critical Raw Materials Club to deliver on a secure, sustainable and affordable global supply of raw materials essential to our green and digital transition with a competitive and diversified industrial base. Building on existing international initiatives, the Club will develop principles to bring together raw material ’consumers' and resource-rich countries and foster co-operation to allow resource-rich developing countries to move up the value chain.
·We will develop Clean Tech/Net-zero Industrial Partnerships 39 promoting the adoption of net-zero technologies globally and supporting the role of EU industrial capabilities in paving the way for the global clean energy transition.
·We will develop an export credits strategy including an EU export credit facility and enhanced coordination of EU financial tools. These can foster coherence with EU policies such as the European Green Deal or Global Gateway which pledged to invest in infrastructures aligned with pathways towards net-zero emissions.
Openness only thrives where fairness survives. Countries around the world have developed new initiatives to support the green transition. Where the public footprint in private markets is outsized, distortions create an unlevelled playing field and unfair competition emerges.A particular concern exists in respect of non-market economies. The EU wants to lead a robust response to address these trends.
In the first place, the Commission will continue to make full use of trade defence instruments (TDI) to defend the Single Market from unfair trade practices like dumping and distortive subsidies, with a focus on sectors that are key for achieving the EU’s net-zero goal. We will also take further steps to ensure that our measures are not circumvented.
As green incentives proliferate around the world, the Commission will ensure that foreign subsidies do not undermine the competitiveness of the European industry unfairly. The Regulation on Foreign Subsidies entered into force on 12 January 2023 and provides an additional tool to investigate subsidies granted by third countries, by considering their specific impact in the internal market. The EU will also work with partners to identify and address distortive subsidies or unfair trading practices relating to IP theft or forced technology transfer in non-market economies, such as China.
The Commission will also promote reciprocity for access to public procurement markets. The Commission stands ready to deploy the International Procurement Instrument for the first time in 2023, in order to make the case for the EU companies to have equal access to procurement markets in third countries.
Finally, at the time of rising geopolitical tensions, the EU and its Member States should act together to defend their interests. The EU framework for screening of foreign direct investment enables effective coordination to safeguard key European assets and protect collective security. We are reviewing the functioning of the mechanism and assessing how its effectiveness can be further improved without jeopardizing our openness to FDI. At the same time, we will coordinate with allies, including in the work programme on economic security put forward by Japan, which holds the Presidency of the G7. The EU’s Anti-Coercion Instrument will, once adopted, provide proper tools to rapidly respond to economic intimidation.
3.Conclusions
The EU remains an attractive destination for sustainable investments. The European Single Market over the last 30 years has delivered very significant economic benefits, raising annual EU GDP by 8-9% on average. 40 The European business model is based on openness, the European social model provides education, social protection of workers, as well as health and environmental protection. We offer a business-friendly environment (e.g. quality of infrastructure, rule of law). Together with fair competition and an unparalleled regulatory framework geared towards the twin digital and green transitions, this is helping to provide the necessary predictability for investors.
The Green Deal Industrial Plan aims to simplify, accelerate and align incentives to preserve the competitiveness and attractiveness of the EU as an investment location for the net-zero industry. Together, the EU and its Member States can send a strong signal to business, while also accelerating the twin transitions.
In the short term, and especially facing unfair competition against the background of high energy prices, temporary and targeted additional measures are warranted to support European industry. The regulatory environment has to be adapted for a new reality. It should be simpler and faster to better serve the objectives of the EU towards a sustainable net zero economy and society.
This Communication is a further step in the implementation of the Versailles Agenda 41 . It presents the Commission’s response to the short-term challenges European industry is facing. The Commission will also heed the European Council’s call to present before its March meeting a broader strategy to boost long-term competitiveness in the Single Market, as it celebrates its 30th anniversary. The Commission also calls on Member States for agreement on the Economic Governance Review.
The Commission stands ready to support industry and society in its transition towards sustainability, promoting investments in new technologies and providing funding where possible and necessary. Investments in a skilled population require training and education to be a crucial part of our future. Because we live in an interconnected world and because the green transition is a reality beyond the EU’s borders, the Commission will keep engaging and working with our trade partners, in an open but assertive approach.
The Commission calls on leaders, governments, lawmakers and social partners to support the implementation of this plan and is ready to translate it into concrete proposals based on the ongoing needs assessment before the March European Council.
(1)
Energy Technology Perspectives (2023), International Energy Agency.
(2)
The rise of European Clean Tech – Report , https://dealroom.co/uploaded/2022/04/Dealroom-Talis-Climate-Tech-Europe-2022.pdf
(3)
Chinesische Subventionspolitik: Effekte auf deutsche Unternehmen (vbw-bayern.de)
(4)
The precise product scope remains to be defined. Taking technology neutrality as a starting point, the Act would build on an assessment of strategic importance and identified needs of manufacturing investment in different types of net-zero products. Those technologies may go beyond the strategic net-zero technologies that will be eligible for the specific type of support available under the State aid Temporary Crisis and Transition Framework.
(5)
National public funding constituting state aid shall be in line with the TCTF.
(6)
For example, the recycling of raw materials for solar panels or the installation of wind turbines could be facilitated by complying with European standards developed in these fields. It is already possible to develop a standard for the collection, transport and treatment of batteries to enable fast-tracking and simplified procedure for recycling installations complying with that standard.
(7)
The Commission intends to publish a guidance showcasing the relevant use cases of regulatory sandboxes, test beds and living labs in order to support policymakers and innovators in their approach to experimentation in the EU by summer 2023.
(8)
Such as producers of polysilicon used in solar PV or of battery cells manufacturers.
(9)
Commission estimates based on data from International Renewable Energy Agency (Irena) and industrial stakeholders.
(10)
The EU’s ecodesign policy sets harmonized rules for energy-related products on aspects such as energy consumption, water consumption, emission levels and material efficiency, stimulating both demand and supply for more sustainable products.
(11)
For heat pumps thanks to the energy labelling database EPREL https://eprel.ec.europa.eu/screen/home
(12)
Regarding the investment needs, see Staff Working Document REPowerEU https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52022SC0230&from=EN
(13)
Such as additional batteries and hydrogen, or possibly solar or heat pumps.
(14)
Study on energy subsidies and other government interventions in the European Union - Publications Office of the EU (europa.eu) . Public support measures include direct transfers to business and consumers; tax expenditures (e.g. tax credits, VAT reduction); income or price support; Research & Development (R&D) support.
(15)
This comes on top of the existing transfer possibilities of 5% from the cohesion policy funds (up to EUR 17.9 billion).
(16)
EIB boosts clean energy financing in support of REPowerEU Plan. Press release available at:
https://www.eib.org/en/press/all/2022-450-eib-boosts-clean-energy-financing-in-support-of-repowereu-plan
(17)
In addition, by December 2022 the EIB had signed agreements for 29 operations in 9 Member States for EUR 2.3 billion under InvestEU for financing projects in research and innovation, as well as in sustainable infrastructure and also for social investment and skills.
(18)
This is without compromising the overall ETS revenues available for the repayment of the NGEU debt
(19)
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52021DC0390
(20)
Based on Eurostat definition of green jobs (‘Employment in the environmental goods and services sector’)., Eurostat ‘Environmental economy - statistics on employment and growth”, data, https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Environmental_economy_%E2%80%93_statistics_on_employment_and_growth&oldid=583805#Development_of_key_indicators_for_the_environmental_economy .
(21)
Female employment rate was 69.5% in Q2 2022 compared to 80.2% for men and 74.9% on average. Employment rate of people aged between 60 to 64 was 48.2% compared to 74.9% on average for the age group 20-64.
(22)
Whilst the unemployment rate decreased to a record-low 6,0% in November 2022, youth unemployment (under 25 years) stands at 2,5 times of general unemployment.
(23)
Vacancy rate is the proportion of empty vacancies in the total number of vacancies and is considered as one of the best possible measures to indicate labour shortage in a sector.
(24)
These sectors include the electricity, steam, gas and air conditionings, transportation, construction and Manufacturing sectors. Data for the Water supply, sewerage, waste management and remediation activities sector that is also regarded as key for the transition are unfortunately not available at the EU level.
(25)
Based on the narrow Eurostat definition of green jobs (‘Employment in the environmental goods and services sector’). Labour shortages, as proxied by the vacancy rate, have doubled in sectors considered key for the green transition between 2015 and 2021.
(26)
ILO report 2019: Skills for a greener future: a global overview, available at: https://www.ilo.org/wcmsp5/groups/public/---ed_emp/documents/publication/wcms_732214.pdf
(27)
JRC Clean Energy Technology Observatory (CETO): Overall Strategic Analysis of Clean Energy Technology– 2022 Status Report: https://publications.jrc.ec.europa.eu/repository/bitstream/JRC131001/2022.5375.pdf
(28)
COM (2022) 625
(29)
Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of Regions, Harnessing talent in Europe’s regions, COM(2023)32 final.
(30)
For example: micro-credentials, individual learning accounts, digital skills and education recommendations.
(31)
This translates to lower share of patent applications with women inventors (only 20% in all patent classes in 2021 and just over 15% for climate change mitigation technologies), lower share of start-ups founded or co-founded by women (less than 15% in the EU in 2021), and lower amounts of capital invested into women-led companies (only 2% in all-female start-ups and 9% in mixed teams in the EU in 2021). Source: CETO: Overall Strategic Analysis of Clean Energy Technology in the European Union – 2022 Status Report
(32)
32% in 2019, according to the Clean Industry Energy Forum, Joint declaration on skills in the clean tech sector, https://commission.europa.eu/system/files/2022-06/ceif_joint_statement_on_skills.pdf
(33)
COM (2022) 16
(34)
The European Battery Academy will train, reskill and upskill approximately 800 000 workers by 2025.
(35)
Point 18 of the Guidelines on IPCEIs: Communication from the Commission - Criteria for the analysis of the compatibility with the internal market of State aid to promote the execution of important projects of common European interest - OJ C 528, 30.12.2021, p. 10–18.
(36)
European Social Fund +, Erasmus, Horizon Europe, European Regional Development Fund, Digital Europe Programme, Recovery and Resilience Facility and the Just Transition Fund.
(37)
This requires, along other things, strengthening the EU’s capacity to control and protect the EU border, which is a key objective of the upcoming Customs reform.
(38)
The EU has launched under Horizon Europe a dedicated “Africa initiative” and a “Mediterranean Initiative”, each with a total EU investment of around EUR 300 million.
(39)
As developed by the Coalition of trade ministers for climate:
https://ec.europa.eu/commission/presscorner/detail/en/IP_23_248
(40)
Discussion Paper 094: Quantifying the Economic Effects of the Single Market in a Structural Macromodel (europa.eu) , Jan in’t Veld, 2019.
(41)
Informal meeting of the Heads of State or Government, Versailles Declaration, 11 March 2022.