# EU announces plans to lead green industrial revolution Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-03-16 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: EU unveils strategy to boost clean tech industries Meta Description: Discover the EU's strategy to compete globally in clean tech products and access critical raw materials for the green transition. Be a leader in the URL: https://financedigest.com/eu-announces-plans-to-lead-green-industrial-revolutionhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-03-16t105616z3lynxmpej2f059rtroptp4eu-industry-1736814309332-compressed.jpg) By Philip Blenkinsop BRUSSELS (Reuters) -The European Commission presented the centrepieces of a strategy on Thursday to ensure its industry can compete with the United States and China in making clean tech products and accessing raw materials required for the green transition. The EU executive’s Net-Zero Industry Act and Critical Raw Materials Act, part of its Green Deal Industrial Plan, are designed to ensure the bloc is not just a frontrunner in cutting carbon emissions, but also ahead on the technology required to do so. There are signs it is lagging. [Global investment](https://www.financedigest.com/volkswagen-to-invest-in-mines-in-bid-to-become-global-battery-supplier.html "Volkswagen to invest in mines in bid to become global battery supplier") in the green transition is set to triple by 2030 from $1 trillion last year, the Commission says. The bottom line is that we want to be leaders in the [green industries](https://www.financedigest.com/eu-recovers-appetite-for-trade-in-green-industry-push.html "EU recovers appetite for trade in green industry push") of the future,” Vice President Valdis Dombrovksis told a news conference. The EU executive [set targets](https://www.financedigest.com/eu-sets-recycling-reuse-targets-to-cut-packaging-waste.html "EU sets recycling, reuse targets to cut packaging waste") for the region to mine 10% of the critical raw materials it consumes, such as lithium and for the first time copper and nickel, with recycling adding a further 15%. It also aims to increase processing to 40% of its needs by 2030. The supply of minerals vital for the green transition is a challenge, with China processing almost 90% of rare earths and 60% of lithium, a key element for batteries. The Commission said no more than 65% of any key raw material should [come from a single third country](https://www.financedigest.com/buyers-shun-city-centres-for-country-villas-when-it-comes-to-lifestyle-investment-in-iberia.html "BUYERS SHUN CITY CENTRES FOR COUNTRY VILLAS WHEN IT COMES TO LIFESTYLE INVESTMENT IN IBERIA"). We are not a resource-rich continent,” Dombrovskis said, adding that for many materials, [Europe relied on a small](https://www.financedigest.com/soldo-welcomes-darren-upson-as-vice-president-of-small-business-europe.html "Soldo Welcomes Darren Upson As Vice President Of Small Business Europe") number of partners. This is not a stable nor reliable [way to build the industries of the future](https://www.financedigest.com/5-ways-to-protect-your-wealth-for-future-generations.html "5 Ways to Protect Your Wealth for Future Generations"). So we urgently need to diversify.” Russia’s invasion of Ukraine has reinforced a [lesson learned during the COVID-19 pandemic](https://www.financedigest.com/3-investing-lessons-you-can-learn-from-still-evolving-pandemic.html "3 Investing lessons you can learn from still-evolving pandemic"), namely that the EU cannot rely on a single supplier for essential materials. The EU executive would recognise plans to mine or process raw materials as “strategic projects”, which would allow them to [benefit from streamlined permits and access to financing](https://www.financedigest.com/can-finance-reap-the-benefits-of-the-cloud-without-compromise.html "Can finance reap the benefits of the cloud without compromise?"). In trade, the EU would seek to [expand its network of partnerships](https://www.financedigest.com/forescout-and-fireeye-expand-partnership-enabling-faster-response-to-cybersecurity-threats.html "FORESCOUT AND FIREEYE EXPAND PARTNERSHIP, ENABLING FASTER RESPONSE TO CYBERSECURITY THREATS"), such as with Australia, Canada and Chile. MAKING ITS OWN CLEAN TECH EQUIPMENT The EU also set a target of producing by 2030 at least 40% of the products it needs for “net-zero” technologies, such as solar power or fuel cells, partly by streamlining the [granting of permits for green projects](https://www.financedigest.com/amazon-grants-1-5-million-euros-to-dutch-seaweed-farm-project.html "Amazon grants 1.5 million euros to Dutch seaweed farm project"). The bloc also [announced a goal for carbon capture of 50 million](https://www.financedigest.com/britain-announces-205-million-pound-auction-for-renewable-power-projects.html "Britain announces 205 million pound auction for renewable power projects") tonnes by 2030. [Carbon capture is one of a list of “net zero” technologies](https://www.financedigest.com/coca-cola-digital-ad-campaigns-use-seenthis-streaming-technology-to-avoid-excessive-carbon-footprint.html "Coca-Cola Digital Ad Campaigns Use SeenThis Streaming Technology to Avoid Excessive Carbon Footprint") the EU recognises. Controversially, these also include advanced nuclear processes. BusinessEurope described the proposal as of [“limited scope”](https://www.financedigest.com/digital-euro-will-be-free-but-limited-in-scope-ecb-says.html "Digital euro will be free but limited in scope, ECB says") and said the EU should acknowledge that the decarbonisation of Europe is a priority for the whole economy. Another [industry group WindEurope said the proposals failed to explain what financial support](https://www.financedigest.com/5-ways-the-fs-industry-can-support-the-recovery.html "5 ways the FS industry can support the recovery") the EU would offer to massively scale up turbine manufacturing or how governments would use the new flexible rules to support this. Colin Mackey, head of European operations at miner [Rio Tinto](https://www.financedigest.com/rio-tinto-says-output-from-2-4-billion-serbia-lithium-project-to-be-delayed.html "Rio Tinto says output from .4 billion Serbia lithium project to be delayed"), said he welcomed the critical raw materials act, but that there was a long way to go to meet anticipated demand. Swedish mining and smelting [group Boliden said Europe needed much work to improve from a poor starting point](https://www.financedigest.com/new-intelligence-points-to-pro-ukraine-group-in-nord-stream-attack-nyt.html "New intelligence points to pro-Ukraine group in Nord Stream attack -NYT") and that major projects for copper and nickel were a priority. ($1 = 0.9488 euros) (Reporting by Philip Blenkinsop; additional reporting by Kate Abnett in Brussels, Eric Onstad in London; editing by Christina Fincher) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---