08 February 2023

On February 1 2023, the European Commission officially presented the Green Deal Industrial Plan. The Plan outlines how Europe will become more resilient, competitive as it moves closer towards a zero-emission industry and climate neutrality. Announced by the European Commission President, Ursula von der Leyen, this new Plan is especially important for cities working on their green transition.

Similarly to Europe's ambitious climate objectives in the European Green Deal, the Plan seeks to use national and EU instruments to improve the framework conditions for investment and enable the expansion of manufacturing capacity for net-zero technologies and products.

With green technology at the forefront of the conversation, cities have a key role to play in the green and digital twin transition process.

Four pillars to put Europe's clean tech industry in the lead

Building on the ongoing efforts made within the European Green Deal and REPowerEU, the Green Deal Industrial Plan focuses on four pillars.

  1. A predictable and simplified regulatory environment – the Plan aims to develop a simpler regulatory framework that will ensure quick deployment and permitting.
  2. Faster access to funding - will accelerate European investment and financing for clean tech production, by simplifying state aid rules and EU funding mechanisms with easier calculations and procedures.
  3. Enhancing skills - which will involve setting goals and indicators to monitor green skills and jobs in the framework of The European Year of Skills 2023.
  4.  Open trade for resilient supply chains - will address global cooperation and trade contribution to the green transition, under the principles of fair competition and open trade.

The role of cities in the technological and green transition

On the journey towards a circular economy, cities play a crucial role. As key drivers of green technologies, cities have the means to:

  • Encourage the deployment of clean tech, by increasing their general adoption, empowering communities built on renewable energies, and inducing a shift towards a reuse culture.
  • Promote clean tech development, by facilitating key partnerships and incubators, as well as developing "clean tech intelligence" with the latest breakthroughs.
  • Increase the local circular economy and material reuse, through municipal recycling facilities and reuse enhancement solutions (e.g. social urban mining, Material Banks, etc.).
  • Support clean urban mobility and re-skill the local workforce.

Final takeaways

As highlighted by President von der Leyen, the Green Deal Industrial Plan is envisaged to turn “skills into quality jobs and innovation into mass production, thanks to a simpler and faster framework”.

With the Plan expecting less regulatory pressures, fewer administrative burdens and faster scale-up of technologies, we encourage cities to harness their power to complement the transition towards climate neutrality and a circular economy.