The European Commission will make it possible to offer tax benefits to companies that make sustainable investments. The proposal is part of the Green Deal Industrial Plan (GDIP) that will be broadcast on Wednesday and is in the hands of the NOS.

To finance the GDIP, the Commission wants to set up a new fund that will be partly filled with money from the European corona recovery fund. With the money from the new fund, summaries can also receive grants and loans to green their economy.

Earlier, the EU already started a program called RePowerEU. Safe money will also remain available to make European industry more sustainable.

The GDIP is seen as the European response to the US Inflation Reduction Act (IRA). That is a $ 700 billion investment package from the Biden administration to strengthen the joint while making the industry in the US more sustainable. Half of the amount is intended for making the industry more sustainable.

The EU sees the IRA as unwanted state aid. For example, Americans can receive a discount of more than $ 7,000 on the purchase of an electric car, if it is made in the US. That will cost ten of European-made cars. European countries are afraid that companies will move factories to the US if the EU does not respond.

If it becomes easier for smaller companies to give companies tax breaks, it will become more attractive for companies to stay in Europe. It can lead to skewed faces within the EU. For example, a rich country like Germany can more easily allocate money to maintain its car industry than a country like Italy.

The draft plan also states that the Commission will bring production chains needed for the generation of wind and solar energy to Europe. More scarce raw materials must be extracted in Europe and more recycled.

According to the plan, the production of solar and wind energy, batteries, heat pumps and hydrogen will require 170 billion euros by 2030.

The EU will distinguish itself from the rest of the world by maintaining high standards when it comes to environmental requirements and working conditions. Also, EU procedures will speed up for projects involving multiple complications but the whole EU profiteer.

The plan is not fixed yet, an estimate is still possible. The final plan is on the agenda of the EU summit with government leaders on 9 and 10 February.

Prime Minister Rutte is not confirming the establishment of a new fund with new money. “There is so much money going around,” he said on Tuesday after a meeting with Commission President Von der Leyen and his Belgian colleague De Croo. Rutte said that some points spend too much money on pensions, “money that is better spent on innovation and green technology”.

French President Macron wants 380 billion euros to be made available for the new fund. Ruth said today after a meeting with Macron who is still much to be found. It will be used in the first possible European pots. But he also wants a solution to the “unintended consequences” of the US IRA package.