By Julia Payne BRUSSELS (Reuters) - The European Commission proposed on Wednesday to make 100 billion euros ($104.97 billion) available to support EU-made clean manufacturing along with measures to
EU's Strategy to Enhance Clean Tech and Reduce Energy Costs
By Julia Payne
BRUSSELS (Reuters) - The European Commission proposed on Wednesday to make 100 billion euros ($104.97 billion) available to support EU-made clean manufacturing along with measures to lower power bills.
The EU Clean Industrial Deal aims to provide support for energy-hungry industries that face "high energy costs, unfair global competition and complex regulations" while also boosting the clean-tech sector.
Here are some of the main elements:
LOWERING ENERGY BILLS
* The Commission will launch a pilot plan worth 500 million euros with the European Investment Bank (EIB) to guarantee long-term renewable power purchase agreements, with a focus on small and medium businesses
* The EIB will also launch a package to back manufacturers of power grid components worth at least 1.5 billion euros
* State aid rules are to be simplified in June 2025
* The new package aims to fast-track clean energy permitting in the fourth quarter of 2025 and European Grid Package in the first quarter of 2026
* It plans to extend gas storage targets beyond 2025 with more flexibility
CLEAN TECH BOOST
* The Commission proposes to establish the Industrial Decarbonisation Bank in 2026 with 100 billion euros in funding based on the existing Innovation Fund and revenues from parts of the Emissions Trading Scheme (ETS)
* EU-level private funding tool InvestEU will be amended to mobilise 50 billion euros in extra financing
* Current EU budget will provide a total of 1 billion euros
* Plan will recommend member states slash electricity taxes
* It will revise public procurement rules in 2026 to favour EU suppliers
CIRCULAR ECONOMY AND TRADE
* Plan will set up joint purchasing centre for metals and minerals vital for businesses in clean tech and for the bloc's decarbonisation targets
* EU plans to adopt Circular Economy Act in 2026 to bring down feedstock costs and incentivise recycling of critical raw material waste
* It will launch new clean trade partnerships globally and simplify carbon duties (CBAM)
* CBAM review set for the third quarter of 2025 before it starts collecting fees on imports of steel, cement and other goods in 2026
* Make fast use of anti-dumping and anti-subsidy duties to battle global surpluses
SECTORAL ACTION PLANS
* Automotive sector to be adopted on March 5
* Steel and metals action plan in second quarter of 2025
* Chemicals industry to be adopted in late 2025
* Sustainable Transport Investment Plan in 2025
(Reporting by Kate Abnett and Julia Payne; editing by Richard Lough, Ingrid Melander and Paul Simao)
