The EU's initiative to amplify its manufacturing output took a significant turn in March 2020 with the launch of the first industrial strategy. This strategy was further refined in response to the COVID-19 pandemic, which highlighted the need for a robust and self-reliant supply chain. The US Inflation Reduction Act, which included substantial tax breaks for clean technologies, further inspired the EU to announce the Green Deal Industrial plan in February 2023. This plan aims to enhance the competitiveness of Europe's net-zero industry and expedite the transition to climate neutrality.
The Green Deal Industrial plan builds on the strengths of the EU Single Market and complements ongoing efforts under the European Green Deal and REPowerEU. It includes several key components, such as the Net-Zero Industry Act, the Critical Raw Materials Act, and a reform of the EU electricity market design. The Commission is also working on a new framework for state aid and aims to streamline the approval of Important Projects of Common European Interest.
The Funding Boost
A central objective of the Green Industrial Plan is to accelerate investment and financing for clean tech production in Europe. To achieve this, the Commission has introduced the Strategic Technologies European Platform (STEP), which will add €10 billion to existing programmes. Commission President Ursula von der Leyen announced that STEP would "set the stage" to mobilise funding across various EU programmes, potentially reaching up to €160 billion in investments in the coming years. This initiative is seen as a precursor to a fully-fledged Sovereignty Fund that would be created in the future.
The €10 billion STEP fund will be distributed among InvestEU (€3 billion), Horizon Europe (€500 million), the Innovation Fund (€5 billion), and the European Defence Fund (€1.5 billion). The Commission believes that this investment will be amplified by a new structure that will direct existing funding towards STEP projects and accelerate implementation in areas crucial for Europe's leadership.
Although the Europe is leading in the quality of its science and innovation, the challenge lies in converting these into sustainable large-scale companies. The EU is addressing this by fostering a more investment-friendly environment for private companies and rethinking its funding strategies. The current funding mechanisms, such as InvestEU and the Innovation fund, are designed to provide the necessary support for companies to accelerate their growth. With these strategies in place, the future of Europe's industrial policy looks promising.
Are you a company looking to accelerate your growth and contribute to a greener, more sustainable future? The EU's Strategic Technologies European Platform (STEP) offers a fantastic opportunity to secure funding for your innovative projects.
At Tiko Pro, we specialize in guiding businesses through the application process, ensuring you have the best chance to benefit from these funds. For expert advice and guidance, reach out to us at firstname.lastname@example.org
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