The European Union is a global leader in reducing carbon emissions, but it is also taking steps to ensure that the green transition does not turn it into an industrial desert, with a raft of measures set to be announced next week.
Europe's industrial competitiveness in relation to the world's two largest economies, the United States and China, has become a major concern across the bloc 30 years after it established its borderless single market, which some say is now due for a major overhaul.
Next week's announcements include legislative proposals to facilitate domestic production of critical supplies and streamline grants for green projects, as well as address the contentious issue of state aid. They come before a summit of EU leaders on March 23-24 to discuss and guide the EU response.
Many in the EU are concerned that US President Joe Biden's Inflation Reduction Act, which offers $369 billion in green subsidies that mostly apply to products made in North America, could entice companies to leave Europe, allowing the U.S. to grow into a clean tech behemoth at the expense of Europe.
