EBN – The European Union (EU) is showing as a huge actor in green technology, according to a recent report from Strategic Perspectives.
The report showcases an innovative contrast of green technology implementation in five big economies––China, EU, US, Japan, and India. It also underscores the EU’s growing effectiveness in this arena.
Report Highlights EU’s Leadership
Notably, the EU outperformed other global leaders last year by achieving the highest share of wind and solar electricity generation.
Furthermore, the EU has demonstrated its commitment to sustainable transportation by boasting the highest per capita usage of electric vehicles.
Furthermore, the region is making strides in investments related to heat pumps, offering a cleaner alternative to traditional fuel.
The report affirms the strategic significance of green technology investments, as they enable countries to bolster their competitive standing.
The report further applauds the initiation of the Green Deal, a set of policies to achieve climate neutrality by 2050.
Additionally, the Green Deal has played a crucial role in strengthening the EU’s position vis-à-vis China.
EU Must Boost Funding for Green Technology
However, the report issues a note of caution, emphasising the EU’s need to rapidly upscale domestic production and financial support for green technologies to avoid falling behind.
Moreover, the report analyses the effect of the Inflation Reduction Act (IRA) in the United States of America.
The Act has raised worries that European firms might move to the US to benefit from state subsidies and support. In turn, this poses a potential threat to the EU’s competitiveness and global leadership in climate action.
To address this challenge, the European Commission has expedited the formulation of a new industrial strategy aimed at significantly increasing domestic net-zero technology production and streamlining administrative processes.
This strategy is complemented by a legal framework designed to facilitate member states’ provision of subsidies to the green economy.
The report said the Green Deal has the potential to be a robust response to the multiple crises facing Europe. Indeed, it could enhance energy security, restore competitiveness, and protect households from soaring energy costs.
