Europe seeks green tech independence amidst stiff competition

Amidst concerns that Europe has not invested as much as the competition in green tech, the region passed the Net-Zero Industry Act, promoting the manufacture of technologies like wind turbines, solar cells, and technologies from which they derive. The bill is expected to facilitate 40% of the region’s clean technology needs and 25% of global requirements by 2030. 

It is uncertain, however, whether Europe will be able to catch up with competitors like the US and China in the green race. To date, the US has invested $369 billion to grow the green tech industry, and the Chinese state continues to back its industry as it seeks global dominance in the field. The EU currently depends on Beijing for much of its green tech needs, a positioning the Act seeks to correct. The Act also seeks to remedy Europe’s dependence on Russia for similar green tech inputs, a stance many deem as protectionist. 

Why does it matter?

Lawmakers claim that given the region’s 80-90 billion euros shortfall in investments into the green tech industry, the Net-Zero Industry Act and similar steps taken by Europe should be viewed as the region’s fight for technological independence instead of protectionism.