EU Delays 'Made in Europe' Green Energy Plan Amid Disagreements on Scope

The European Commission has delayed the announcement of a policy aimed at prioritizing industrial parts and products made in Europe, especially those tied to green energy sectors such as solar panels, lithium batteries, and electric vehicles. The announcement, initially scheduled for Thursday, has been pushed back by a week due to ongoing disagreements over the geographic scope of the initiative.

The new measures, which are part of the Industrial Accelerator Act (IAA), would set minimum thresholds for locally-made components in projects that utilize public funds in strategic green sectors like solar and wind energy, batteries, and nuclear power. These policies are seen as crucial to ensuring that Europe’s green energy industries remain competitive and sustainable in the face of growing global competition, particularly from cheaper imports from countries with looser environmental regulations, such as China.

However, there has been division within the EU on how far-reaching the "Made in Europe" regulations should be. Countries like France have strongly supported the proposal, arguing that European industries need protection against unfair trade practices. On the other hand, Sweden and the Czech Republic have expressed concerns that the "buy local" requirements could limit investment, increase prices in government tenders, and reduce the EU’s global competitiveness.

Furthermore, carmakers and other industries have lobbied for the protections to extend beyond the EU and EFTA countries (Iceland, Norway, Switzerland, and Liechtenstein) to include other territories like Britain and Turkey, which are key parts of their supply chains.

The IAA forms part of the Commission's broader Clean Industrial Deal, which was adopted in February of last year to help Europe strengthen its competitiveness in the clean energy market against rivals like the U.S. and China.

A spokesperson for the Commission indicated that the extra week of discussions would help make the proposal more robust. “We hope that this additional week of internal discussions will allow us to make the proposal even more rock-solid,” the spokesperson said.