The EU is at risk of falling behind
in the global race for green technology, with a top official
warning that its manufacturing capacity is not keeping pace with
climate goals.
Losing ground.
The European Commissioner for Startups, Research and Innovation,
Ekaterina Zaharieva sounded the alarm at the EU Energy Summit on
April 7.
"Our manufacturing capacity in key technologies is lagging
behind other competitors and is far from what we need to achieve
our climate and decarbonisation ambitions," the Bulgarian
politician stressed.
EU companies are exposed to higher production costs and supply
chain dependencies on specific components or raw materials,
according to a progress report on competitiveness of clean
energy technologies published by the Commission. High energy
prices and labour shortages are also problems, it said in the
report.
Zaharieva said that the EU's starting point was good after
"decades of stable investment", pointing to the fact that the
Union accounts for 22 percent of green technology patents
despite having only 5 percent of the world's population.
Public investment levels have grown but are still not where they
need to be and "we're not doing so well when it comes to private
investment", she added.
A Fragmented Effort?.
There are also concerns about a two-speed Europe in terms of
investment. Germany and France together account for 45 percent
of net-zero investment, according to a report published last
year by the pan-European think tank Strategic Perspectives.
Spain followed as the third-largest investor, pouring around
28.06 billion Euro into the sector in 2023, three times more
than in 2019. In the report recommendations were made that the
EU should act as a bloc to avoid losing ground to China and the
United States.
Other EU countries are also taking steps in the area.
In Bulgaria, Energy Minister Zhecho Stankov is confident that
the country has the potential to be a regional leader in green
energy production.
A Centre of Excellence for renewable hydrogen production will be
established in the city of Stara Zagora with the purpose to
promote the development of innovative technology for clean
hydrogen production and use. The project is funded with 15
million Euro under the Horizon Europe Programme and national
co-financing.
Commissioner Zaharieva said Stara Zagora will become a so-called
hydrogen valley (a place that brings together clean hydrogen
production, storage of hydrogen and distribution to end-uses) in
Europe. It will produce 500 tons of hydrogen annually, creating
jobs, developing abilities and attracting quality investment.
In 2023, the Slovenian government decided to invest more than
200 million Euro over the next five years in the domestic
automotive supply industry to support the development of
breakthrough technologies for electrification of mobility and
cutting emissions in the automotive sector.
How green investments can boost economies.
Some political leaders highlight the benefits of such
investments. United Nations Secretary-General Antonio Guterres
said that "renewables are renewing economies".
"They are powering growth, creating jobs, lowering energy bills
and cleaning our air. And every day, they become an even smarter
investment," he added in remarks at a climate conference in
Berlin last month.
The renewable energy and heat pump sectors, for example, make up
168,050 jobs in Spain and 150,030 in France.
The meeting's host, Germany's outgoing Foreign Minister Annalena
Baerbock, also pushed back against the idea that climate
protection is economically burdensome, dubbing it an "old
prejudice".
"We all know that there are spoilers in the world right now who
want to prevent" greater climate investments, she said. "Today
climate protection and economic growth no longer contradict one
another."
Baerbock continued: "Climate protection opens up huge economic
opportunities, and we as Europeans want to seize them."
Europe especially wanted to work with "companies and countries
in Latin America, Africa and other regions around the world",
she added.
"If others, such as the United States, decide to stay out of it,
that is their decision."
The EU's Clean Industrial Deal.
The EU wants to address the situation by supporting increased
investment in green technologies as part of its Clean Industrial
Deal launched in February.
It aims to mobilise over 100 billion Euro to support EU-made
clean manufacturing. The deal also reinforces the EU's
commitment to reducing emissions by 90 percent by 2040 and
includes measures such as streamlining permits for wind farms
and other infrastructure projects, as well as adjusting public
procurement policies to prioritise European-made clean
technologies.
However, it has come under fire from environmental groups. "With
the deregulation push and no concrete plan to mobilise genuine
additional finance, there's little to turn ambition into
action," said Chiara Martinelli, Director at Climate Action
Network Europe, when the deal was announced. "The only real
urgency in the deal seems to be weakening the reporting rules,
not ensuring companies contribute to a fair, competitive and
climate-proof economy."
Meanwhile, the annual European State of the Climate report
released on Tuesday by the Copernicus Climate Change Service and
the World Meteorological Organisation (WMO) shows the stark
situation in Europe. Storms were often severe and flooding
widespread, claiming at least 335 lives and affecting an
estimated 413,000 people.
"This report highlights that Europe is the fastest-warming
continent and is experiencing serious impacts from extreme
weather and climate change," WMO Secretary-General Celeste Saulo
said in a statement. "Every additional fraction of a degree of
temperature rise matters because it accentuates the risks to our
lives, to economies and to the planet."
(continues).
(The content is based on news by agencies participating in the
enr, in this case AFP, BTA, EFE, STA).
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