THE European Commission unveiled plans yesterday to boost the competitiveness of the EU’s manufacturing sector during its drive to decarbonise and avoid reliance on cheap Chinese imports by setting local content requirements.
The intensely debated Industrial Accelerator Act (IAA) will set low-carbon and ‘Made in EU’ requirements for public procurement of, or subsidies for, making aluminium, cement and steel, and technologies including wind turbines, electrolysers or electric vehicles.
The IAA aims to ensure that by 2035 manufacturing represents 20 per cent of the European Union’s national output, from 14pc today, stemming a potential loss of 600,000 jobs in the automotive sector over the next five to 10 years and preserving or creating some 150,000 jobs in other sectors. Together, the sectors covered by the IAA represent some 15pc of EU manufacturing.
“If we do nothing, then it’s quite clear that very soon, 100pc of clean tech technology will be produced in China...It’s quite possible that our cement, steel industries will be offshored completely in the next few years,” Commission executive vice president Stephane Sejourne told a news conference.
Critics say the IAA could prompt trading partners to close their doors.
Proponents point out that rivals such as the United States, China, Brazil and India already have rules on local content in place and that similar requirements could help fill the EU’s massive investment gap.
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