EU lawmakers give final approval to bloc’s green transition fund

In June 2018, the European Commission presented a legislative proposal on a European Defence Fund, including a budget allocation of €11.5 billion in constant 2018 prices for the 2021-2027 period. The proposal aimed to streamline and simplify the set-up in place at the time by integrating the Preparatory Action on Defence Research (research window) and the European Defence Industrial Development Programme (as one part of the capability window) into a single Fund. The main aims of the Fund would be to foster the competitiveness and innovativeness of European defence and to contribute to the EU’s strategic autonomy. In this regard, the Fund would inter alia support collaborative industrial projects; co finance the costs of prototype development; encourage the participation of small and medium-sized enterprises; and promote projects in the framework of permanent structured cooperation. Synergies were expected with other EU initiatives in the field of cybersecurity, maritime transport, border management, Horizon Europe, the space programme and the European Peace Facility. In April 2019, after several trilogue meetings, Parliament and Council reached a partial agreement on the Fund, covering the content, but not, among other things, budgetary issues. Parliament adopted its position at first reading in April 2019. A provisional political agreement on the outstanding issues was reached in December 2020. The Council adopted its first-reading position in March 2021 and the Parliament adopted the text at second reading on 29 April. The final act was published in the Official Journal on 12 May.

Source : © European Union, 2021 – EP

Mayors and city leaders can play a double role in the green transition – as ambassadors for the European green deal locally, and as representatives of people’s concerns and interests to other levels of government, writes Dario Nardella

The green transition will increase demand for critical minerals, high capacity batteries, and semiconductors. An electric vehicle requires six times more critical minerals than a conventional car, while an onshore wind power plant requires nine times more critical minerals than a comparable gas-fired plant. Likewise, the lithium-ion battery market is expected to become five to ten times larger by 2030 on account of demand for electric vehicles and stationary storage. Meanwhile, semiconductors underpin virtually every technology, giving them industrial and national security significance. Dependence on a few countries (e.g. China) for these critical inputs and technologies has sparked interest in policies to increase supply chain resilience, for instance through greater domestic production. As the EU and US face similar challenges, in June 2021 they agreed to establish the EU-US Trade and Technology Council, which will also address cooperation on supply chains.

Source : © European Union, 2021 – EP