The Green Deal Industrial Plan

Green Deal Industrial Plan EU critical raw materials

This article discusses the Green Deal Industrial Plan. We explore the objectives of this EU strategy and consider the operating mechanism of two of its principal pillars, the Critical Raw Materials Act and the Nez-Zero Industry Act. 

While the European Green Deal’s objective of a transition to a net-zero economy should lead to a decrease in the EU’s fossil fuel imports, the rapid roll-out of many clean energy technologies required to reach carbon neutrality by 2050 will lead to significant increases in demand for other resources and technologies, not all of which can be produced within the European Union. Against this background, the European Commission has developed the so-called Green Deal Industrial Plan, which aims to maintain or even enhance the EU’s competitiveness and security of supply as it pursues the European Green Deal. Two principal legislative pillars of this strategy have made their way through the legislative process and are now nearing entry into force. The Council of the EU and the European Parliament reached political agreement on the Net-Zero Industry Act in February 2024. The Critical Raw Materials Act, meanwhile, was formally adopted on 18 March 2024. In this cover the basics article, we ask: what is the Green Deal Industrial Plan? What are critical raw materials and why do they matter? Where is the EU currently standing on critical raw materials? What is the EU doing about critical raw materials? Where is the EU currently standing on clean tech? How is the EU attempting to boost its domestic clean tech sector? Can the EU compete with other global players?

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