EU's new Green Deal Industrial Plan to support new fuels – Danish Shipping

Danish Shipping says the updated Green Deal Industrial Plan presented by the European Commission will support green fuel production, ensure infrastructure development and speed up the green transition.

PHOTO: European Commision building in Brussels, Belgium. Getty Images

The European Commission (EC) has unveiled its new Green Deal Industrial Plan, which will be developed on top of the existing European Green Deal that was presented by the EC in December 2019.

Simplifying the green transition

A key objective of the plan is to establish a supportive regulatory environment and easy access to national and EU funding for "net-zero industries" that are involved in clean energy technologies. The technologies include solar and wind energy, batteries, electrolysers, hydrogen and carbon dioxide capture and storage.

“When you speak to the net-zero industry, the major complaint is always the permitting processes. And it will incentivise multi-country projects. A big focus is on cutting red tape. And it will set targets for what we need until 2030,” says EC President Ursula von der Leyen.

Brussels has recommended several additions to the existing Green Deal Industrial Plan, including creating a "one-stop-shop", or a single point of contact at the EU, for industry players to get permits to develop green fuel projects.

"The processing time for approvals and permits can be a stumbling block in the fight to get the green transition up to speed. It is a good signal from the EU that we must strive to put a ceiling on the processing time for approvals," says Danish Shipping director general Anne Steffensen.

Industries involved in production of renewable fuels and development of infrastructure for those fuels will also come under the scope of the new proposal. Steffensen hopes that the initiative can become a powerful tool to enable nations to build out production capacity for green fuels to meet the growing shipping demand.

EC President Ursula von der Leyen has outlined a few key points that will be formally proposed to the EU's legislative bodies:

• A “Net-Zero Industry Act” to develop green technologies that can help the EU become net zero by 2050
• Further adaptation of Temporary Crisis Framework to include funding requirements for the net-zero industry. “This adaptation has to be targeted and time-limited,” says the EC. The adaptation will extend to renewable hydrogen and biofuel storage
• A “European Sovereignty Fund” that will provide funding for “upstream research, innovation, and strategic industrial projects.”

The EC seeks to “redirect or reorient” the €250 billion ($272 billion) it has previously announced in REPowerEU funding toward the "net-zero industries" through tax breaks and other state aid. In addition, it will assess how InvestEU funding can be increased, while the Innovation Fund will provide production subsidies for key technologies.

European politicians will discuss the EC's communication statement on 9 February. After this debate, the EC will "shape the legal proposals" by mid-March, followed by a meeting with European Council on 23 March.

By Konica Bhatt

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