The European Union responded on Tuesday to U.S. moves to boost its energy transition with its own plans to make life easier for green industry, saying it would mobilize state aid and a sovereignty fund to keep firms from moving to the United States.
European Commission head Ursula von der Leyen told the World Economic Forum annual meeting in Davos that the moves would be part of the EU's Green Deal industrial plan to make Europe a centre for clean technology and innovation.
Earlier, International Energy Agency executive director Fatih Birol told a WEF panel that energy security was now the biggest driver of climate investment. While European countries have welcomed the new commitment to energy transition by Biden's administration, some fear it may disadvantage their companies.
Sikela said European households and industries were paying the biggest bill for the global energy crisis, while the new U.S. legislation would pull away investors and force governments into a "dangerous" competition on subsidies.Von der Leyen later told reporters that the proposed fund - an idea she first raised in September which does not yet have the support of all EU governments, notably Germany - would disburse both grants and loans.
"As this will take some time, we will look at a bridging solution to provide fast and targeted support where it is most needed," she said, without giving any details, adding that the Commission was pinning down the needs of the green industry., earlier called the U.S. legislation one of the most transformative bills ever signed.
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