On 1 February, the European Commission unveiled the Green Deal Industrial Plan, its response to the US Inflation Reduction Act, which provides massive tax benefits for the production of clean technologies in the US. The Commission’s plan aims to drive environmental change while maintaining the international competitiveness of the European economy.
The Green Deal Industrial Plan incorporates some existing legislation (for example, the Critical Raw Materials Act), some new initiatives (such as the Critical Raw Materials Club), as well as funding opportunities. The circular economy, value chains and sustainability are crucial criteria for the future of the European economy and therefore play an important role in the European Commission’s plan.
The Commission gives high priority to the forthcoming Ecodesign Regulation for Sustainable Products. However, encouraging consumers to make more sustainable choices will also play an important role in the transition to a circular economy. This shift requires a transparent market that allows consumers to make purchasing decisions based on reliable sustainability criteria – and will be achieved through initiatives such as energy labelling for electronic products.
The Commission also plans to reduce existing dependencies in product supply chains, strengthen recycling measures, and promote quality jobs and growth in the circular economy.