On the 1st February 2023 The European Commission revealed their Green Industry pact to help reduce reliance on China for the manufacture of products in future. It has proposed loosening the regulations on state aid to permit the EU to become a leading hub for green production. Under the initiative, the European Commission is redirecting existing EU funds, expediting green project approvals, and fortifying trade agreements to guarantee a secure supply of necessary raw materials.
This is partly response to large-scale support initiatives, such as the Chinese and American multi-billion-dollar programmes, and the U.S.'s Inflation Reduction Act.
Led by President Ursula von der Leyen, the initiative is aimed at encouraging competition with the US and strengthening the EU’s green sector.
"Major economies are rightly stepping up investment in net zero industries," von der Leyen told a news conference. "What we are looking at is that we have a global playing field."
European Union executives have worries that the U.S. $369 billion worth of green support funds stipulated in the new legislation, with their local content conditions, will persuade businesses to relocate, leading to America becoming a leader in green technology and resulting in Europe taking the brunt of it.