International Relations
Context: Recently , the European Union revealed the “Green Deal Industrial Plan” that aims to cut red tape and provide massive subsidies in a bid to support and expand its green industry.
Regulatory Framework:
- By regulatory framework, the Green Deal Industrial Plan seeks to formulate a strategy for the “Net-Zero Industry Act.”
- This will not only simplify rules for traders to trade and operate freely but will expedite the process of trade permits and insurance for green projects, such as renewable energy generation arrays, carbon capture and renewable hydrogen production facilities.
Faster funds arrangement:
- The rules will be relaxed to facilitate easier investment and raising of funds for the EU’s 27 governments to operate and work on clean energy projects.
- The proposal has been formulated to help European (Non-rich) by offering subsidies and allowing the usage of existing EU funds.
Enhancement of skills:
- The ‘Green Deal Industrial Plan’ aims to create a “Net-Zero Industry Academies” that will provide up-skilling and re-skilling programmes in strategic industries.
Trade improvement:
- The deal plan also emphasizes on the significance of free and open trade and aims to further ‘develop EU’s network of Free Trade Agreements and other forms of cooperation with partners to support the green transition.”
USA’s Inflation Reduction Act (IRA):
- It is a landmark United States federal law which aims to curb inflation by reducing the deficit, lowering prescription drug prices, and investing into domestic energy production while promoting clean energy.
Source: Indian Express
