EU reaches clean-tech deal to answer the US tax credit system

The European Union reached a provisional deal to support its clean-tech industry as it seeks to fend off global challenges from the US and China.

Lawmakers and member states agreed to speed up permitting and change the way auctions for new renewables projects are conducted to help support the sector as part of the Net Zero Industry Act, according to a spokesperson for the European Council. The overall objective of the law is to manufacture 40% of the bloc’s clean-tech needs within the EU.

The plan was put forward last year as a direct response to the US Inflation Reduction Act, a package of tax credits aimed at spurring billions of dollars in new investment in clean technologies. While the NZIA has been welcomed by industry, there’s concern that the EU has put no fresh money behind the plan.

The deal promotes key technologies the EU will focus on supporting, including wind, solar, green hydrogen, energy storage and nuclear.

The European Parliament, as well as the bloc’s 27 member states, need to sign off on the final deal before it becomes law.