The European Union's executive body is ready to provide permissions, regulatory support, and easier access to public and private investment for some key green technologies, according to its draft document.
The draft regulation is designed to guarantee that "the net-zero technology manufacturing capacity in the Union is sufficient to meet at least 40% of the Union's annual deployment needs,” the document says.
The EU is concerned that European firms would relocate to the United States, which has a $369 billion green manufacturing subsidy scheme.
Ursula von der Leyen, President of the European Commission, announced in January that the steps will be part of the EU's Green Deal industrial plan to make Europe the home of clean technology and industrial innovation on the path to net-zero carbon emissions by 2050.
According to an annex attached to the paper, the legislation will be geared to assist technologies such as solar photovoltaic and solar thermal, onshore and offshore wind, battery, heat pumps and geothermal energy, renewable hydrogen, biomethane, nuclear, fission, and grid technology.
According to the International Energy Agency, these technologies “have reached a technology readiness level of at least 8," with some exceptions, according to the draft.
Some technologies, such as sustainable aviation fuel (SAF), were not considered as potential candidates for the support plan in the draft. The U.S., on the other hand, provides support for SAF under the Inflation Reduction Act.
The guidelines would also promote auctions to deploy renewable energy sources, modify innovation funding, and make public-private procurement more accessible.
If the targets are not met by 2030, the European Commission would recommend "additional measures aimed at covering the identified gaps," the draft says.
The European Commission declined to comment on the draft document, which an industry source said was expected to be released in the coming weeks.