EU is unlikely to reach its green industry targets

Significance

The measures are designed to ensure that the EU not only reaches emission reduction targets but is also competitive in the industries required for accelerating the green transition. The NZIA and CRMA predominantly focus on bolstering the EU’s industrial competitiveness in green technologies by improving the regulatory environment.

Impacts

• The legislation underpinning the NZIA and CRMA is unlikely to be implemented until 2024 at the earliest.
• Concerns over competitiveness could see some governments attempt to protect traditional industry and thus challenge the EU’s climate goals.
• The EU’s long-term aim significantly to reduce clean-tech imports could alienate trade partners such as Japan and the United States.