State of the EU: Brussels launches clean tech competitive initiatives

“Europe will do whatever it takes to keep its competitive edge.” So said European Commission President, Ursula von der Leyen, during her 2023 State of the European Union (SOTEU) address, announcing two inititiatives to do just that: an investigation into EVs imported from China and a package for the Union's wind sector.

Referring to the importance of the European Green Deal at the start of her term as European Commission President in 2019, von der Leyen led her State of the Union address with the importance of the energy sector in enhancing Europe’s position as a competitive global player.

“Four years ago, the European Green Deal was our answer to the call of history and this summer, the hottest ever on record, was a stark reminder of that.”

Referencing the extreme wildfires and flooding experienced this year in Greece and Spain, as well as chaotic extreme weather in Bulgaria and other member states, von der Leyen emphasised how, although much has been done towards net zero, “our work is far from over.

“This is the reality of a boiling planet. The European Green Deal was born out of this necessity to protect our planet, but it was also designed as an opportunity to preserve our future prosperity.”

SOTEU: A wind package and EV investigation

This initiative, placing Europe again on the map against global energy competition majors such as the US and China, has been in the works through 2023 via tabled policies such as the Net-Zero Industry Act and the Critical Raw Materials Act.

Towards this end, during the SOTEU address, von der Leyen announced two initiatives to reinforce the continent’s clean tech industry while de-risking the competitive landscape.

The first initiative is focused on the wind sector, which has been “facing a unique mix of challenges and this is why we will put forward a European wind power package, working closely with industry and member states.”

The package, according to von der Leyen, will go towards fast-tracking permitting, improving the Union’s auction systems, boost skills and supply chains and enable eased access to finance.

“But this is broader than just one sector. From wind to steel, from batteries to electric vehicles, our ambition is crystal clear – the future of our clean tech industry has to be made in Europe. This is our task.”

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However, although placing Europe on the map as a leading energy player will be key, von der Leyen also cautioned against isolating competitors, due to its importance both for business and jobs across the continent.

“Our industries and technology companies like competition. They know that global competition is good for business and that it creates and protects jobs here in Europe. But competition is only good as long as it is fair.”

Hence, the second initiative – an investigation into imported electric vehicles (EVs):

“Take the EV sector. It is a crucial industry for the clean economy with a huge potential in Europe, but global markets are now flooded with cheaper Chinese electric cars; their prices kept artificially low by huge state subsidies.

“This is distorting our market and as we do not accept this distortion from the inside of our market, we do not accept this from the outside.

“I can announce today that the Commission is launching an anti-subsidy investigation into electric vehicles coming from China (…) Europe is open to competition, but not for a race to the bottom.”

This, adds von der Leyen, is part of a strategy to “de-risk, not decouple” trade practices in the EU, a strategy to boost the Union’s competitiveness while retaining beneficial relations.