Commission President Ursula von der Leyen announced a loosening of EU state aid rules, a repurposing of existing EU funds, faster approval of green projects and drives to boost skills and to seal trade agreements to secure supplies of critical raw materials.
Many EU leaders are concerned that the local content requirements of the $369 billion of green subsidies in the US legislation will encourage companies to relocate, making the US a leader in green tech at Europe's expense. "We know that in the next years, the shape of the economy, the net-zero economy, and where it is located will be decided. And we want to be an important part of this net-zero industry that we need globally," von der Leyen said.
There is also clear resistance from certain EU members to previous suggestions that the plan could entail further joint borrowing. The bloc is heavily reliant on China for rare earths and lithium, which are vital materials for the green transition.