The move comes amid growing concern over reliance on China and the United States unleashing a $369- billion clean technology subsidy, which may lure European manufacturers away
Brussels is moving to reduce its reliance on China and turn Europe into an attractive investment destination after the United States unleashed a $369 billion bonanza of clean technology subsidies last year. The spur to the EU's latest plan is growing concern that the US programme would lure European manufacturers away.
The current EU President, Belgium, said a provisional agreement had been reached, which aims for the bloc to produce at least 40 percent of the green technology used in the EU by 2030.
The Net-Zero Industry Act designates "strategic" technologies, including nuclear, solar, and wind power, to support the EU's goal of a carbon-neutral economy by 2050.
Under the law, public tenders would be weighed on criteria that could favour European companies to counter similar moves by Beijing and Washington. The draft also seeks to make sure businesses can obtain permits faster. The law will be enacted after formal approval by EU states and the parliament.
Access to clean technology is a significant concern in Europe, and many people worry that relying too much on imported technology is not sustainable. Despite introducing a new draft law, some believe it may not be enough to change the current situation.
China is currently the dominant player in the solar power industry, and European solar panel manufacturers have repeatedly requested assistance from Brussels. They accuse Beijing of unfair practices in the industry.
Official data shows that over 90 percent of Europe's solar panel supply is processed in China, the EU's primary import partner for solar panels and wind turbines.
Learning from its experience of Russia's invasion of Ukraine, the EU is now more cautious in its dealings with China. It seeks to "de-risk" its economy from China and increase domestic production.
The "oversupply" from China is not limited to wind and solar; the heat pump, electrolyser, and battery industries are also under pressure. Last year, the EU opened a probe into Chinese electric car subsidies, and there are hopes among some in the industry that it will launch another investigation into Chinese solar panels.
But the EU's financial services commissioner, Mairead McGuinness, tamped down any such hopes on Monday, saying the bloc must carefully consider the impact of its actions.