Visiting Chancellor Olaf Scholz and the German cabinet in Berlin, EU Commission President Ursula von der Leyen said Europe needs to focus on remaining the leading region in clean technologies in the future. "We need to improve the framework conditions for clean tech", she explained.

Von der Leyen said she is determined to counter challenges from U.S. subsidies for green technologies and to speed a currently blocked law on phasing out combustion engines from 2035.

"Clean tech is the fastest-growing industrial and investment sector in Europe today. We are the world leader in many clean technologies – just look at fuel cells, the hydrogen economy, and wind turbines. But now it is crucial that we also maintain our lead here. And we are discussing all this in face of the fact that the USA has enacted its ‘Inflation Reduction Act', which on one hand offers massive tax breaks for the clean tech sector, but on the other hand is underpinned by a very clear ‘buy American' logic. Firstly, we have to say that investments in the clean tech sector in the US are good, because they are good for combating climate change. But they also present us with some difficulties. So we have discussed how we can respond to these", explained EU Commission President.

Key action scenarios

To accelerate the commitment to clean technologies, von der Leyen explained that the EU will work on some key points. "Firstly, negotiations with the US on the interpretation of the Act are important. Secondly, we need to invest more ourselves. And thirdly, we need to speed up processes", explained.

In the negotiations with the USA, von der Leyen acknowledged that it is crucial that we manage to also gain access to tax privileges in the USA for the automotive industry. "We have succeeded with this in a first step, if we look at the issue of electric cars. We still have to work with the USA on the issue of batteries and battery components. A second point that is important: if we look at the US Act with its tax breaks, then it is important that we are likewise in a position to invest in our clean tech industry here as well", she said.

How? EU Commission President assured that progress can be made by means of aid, but also by means of European funds that have not yet been utilised.

"That is the second component we will propose in a legislative act in two weeks' time. And here in Meseberg I have also given you an insight into this further, larger package for competitiveness that we will present the week after next. This will be a communication from the Commission. At issue is the need to remove barriers in the Single Market. It is a matter of strengthening the industrial base in Europe. This means we need more innovation to be able to make climate-friendly economic activities a reality. We need to take a much stronger approach to tackling skills shortages – this issue will play a major role. The shortage of skills is potentially the strongest brake on our growth", said von der Leyen.