EU sets plan to promote rapid green transition of key industries

The transition towards a net zero greenhouse gas economy puts the power sector in the spotlight. The clean energy transition should result in an energy system where primary energy supply would largely come from carbon free sources.

In June 2018, the European Commission proposed a total budget allocation of €100 billion to finance science, research and innovation projects during the 2021-2027 period, of which the vast majority, €94.1 billion in current prices, would be allocated to the Horizon Europe framework programme. The main aims are to strengthen science and technology, to foster industrial competiveness, and to implement the sustainable development goals in the EU. Horizon Europe introduces new features such as the European Innovation Council, missions to promote research results, and new forms of partnerships. Horizon Europe also aims at reducing administrative burdens and promoting the concept of open science. More operational synergies are expected through better linkage with other EU programmes. In March 2019, Parliament and Council reached a partial agreement on most aspects of Horizon Europe. However, the financial aspects were only settled in December 2020 as part of the broader MFF negotiations, together with the sensitive issue of third-country association. The final text was adopted in April 2021 and entered into force retroactively from 1 January 2021. Third edition of a briefing originally drafted by Cemal Karakas. The ‘EU Legislation in Progress’ briefings are updated at key stages throughout the legislative procedure.

Source : © European Union, 2021 – EP

Policy analysis examines and assesses problems to determine possible courses for policy action (policy options). In highly complex or controversial contexts, evidence-based policy options might not be socially acceptable. Here, policy analysis can benefit from a foresight-based approach, which helps investigate the issue holistically and assess considered evidence-based policy options against societal concerns. This is especially important in a parliamentary setting, as it enables analysts to consider stakeholder views and geographical concerns/differences when assessing policy options. This manual establishes the methodology for the foresight process and foresight-informed policy analysis. It offers a conceptual clarification of foresight and foresight-based technology assessment, helps enhance the transparency of foresight processes and the quality of policy analyses, offers four general guidelines for conducting trustworthy policy analysis, and, finally, provides a practical framework with six basic components for foresight-based policy analysis.

Source : © European Union, 2021 – EP

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

The German government is planning a new green financing strategy to steer capital towards environmental projects and developing Germany into a leading hub for sustainable finance, plans seen by Reuters show.