Today the @EU_Commission will present:
The Net-Zero Industry Act (#NZIA) to strengthen the deployment of net-zero technologies in the EU.
And the Critical Raw Materials Act (#CRMA) to establish a secure and sustainable supply of critical raw materials.
🧵(1/8)
🐦🔗: https://n.respublicae.eu/MChahim/status/1636286166138859521
Instead of perceiving this as a response to the #IRA, I rather see the plans as a framework for industry to steer them in the energy transition.
The market will only go for an economic optimal, something that will not necessarily lead to a social optimal (just transition)
(2/8)
🐦🔗: https://n.respublicae.eu/MChahim/status/1636286168181493761
The #NZIA contains targets for the European production capacity of net zero technologies.
(Unlike the in the #IRA this production is not only for the EU market.)
Good for deployment and for our open strategic autonomy.
(3/8)
🐦🔗: https://n.respublicae.eu/MChahim/status/1636286169922011136
However, there is missing a link between these net-zero technologies and our existing industry.
How will these help our industry decarbonize?
We need clear sectoral pathways, with predictability on access to green technologies. 🏭
(4/8)
🐦🔗: https://n.respublicae.eu/MChahim/status/1636286171595538432
On the #investment part, it is important to take stock of our existing funds and make sure they are contributing to our objectives.
We need to avoid fragmentation of our single market because of (unbalanced) state aid.
Competitiveness is not build on subsidies.
(5/8)
🐦🔗: https://n.respublicae.eu/MChahim/status/1636286173231435777
On #CRMA we need to keep options on the table, I cannot rule out mining in Europe, but strict social and green conditions must be applied.
We need to develop a EU standard and apply this to all CRMs.
The energy transition is in the first place a material transition.
(6/8)
🐦🔗: https://n.respublicae.eu/MChahim/status/1636286174896480256
There should be emphasis on reuse and recycling of CRMs.
Ambitious targets will create a business case for these recycled materials.
And decreasing the increase in demand is essential to deal with supply problems.
Looking forward to working on this!
(8/8)
🐦🔗: https://n.respublicae.eu/MChahim/status/1636286178478415874
Coordination on an EU level will be key. 🇪🇺
We need to create a merit order for the use of CRMs and to steer the transition.
We cannot let the market decide in which sectors the materials end up: imagine industry not able to decarbonize due to the lack of certain CRMs?
(7/8)
🐦🔗: https://n.respublicae.eu/MChahim/status/1636286176632946689