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The European Commission will introduce a series of clean tech objectives for 2030 under the auspices of a proposed ‘Net-Zero Industry Act’, according to a report in POLITICO.

The announcement was made by EC President Ursula von der Leyen at the World Economic Forum in Davos on Tuesday.

The purpose of the new law will be to compete with the green subsidy package proposed under the US Inflation Reduction Act (IRA), which is set to pour $369 billion in subsidies to encourage climate-friendly investment in North American green businesses.

“The aim will be to focus investment on strategic projects along the entire supply chain”, von der Leyen said. “We will especially look at how to simplify and fast-track permitting for new clean tech production sites.”

Keeping businesses in the EU

“It is no secret that certain elements of the design of the Inflation Reduction Act raised a number of concerns in terms of some of the targeted incentives for companies,” von der Leyen stated in a keynote speech. EU officials and finance ministers are worried that the IRA’s subsidies could help lure companies away from Europe.

The looming economic threat has led to a flurry of response from the European Commission. Last week, Commissioner Margrethe Vestager proposed a new temporary state aid framework, including “anti-relocation investment aid” to keep firms from leaving the EU to seek more favourable conditions abroad. 

While speaking at Davos, von der Leyen also announced a European Sovereignty Fund as part of the mid-term review of the bloc’s long-term budget. The Commission president originally proposed the initiative in her State of the Union speech last September. The goal of the EU fund would be similar to that of the US: help businesses invest in Europe and meet ambitious green standards.