EU should emulate China’s green tech policies, say former French and Irish ministers – Euractiv

China’s use of state power to invest in and develop green technologies should inform European policymakers as they develop a strategy to decarbonize the EU economy, two former EU environment ministers said on Wednesday.

“We must commend China for Decarbonization IndustryBrice Lalonde, a former French environment minister, said this at an event in Brussels organised by Chinese companies and state media.

“This is the path we in Europe must take,” he added.

Lalonde’s comments were echoed by Dick Roche, a former Irish environment minister, who highlighted the benefits of China’s state-led development of cutting-edge green technologies, including solar panels, wind turbines and electric vehicles (EVs).

“The government’s favorable policies laid the foundation for China’s rise as a leader,” Roach said. “Other governments could have adopted the same policies, should have adopted the same policies, but will not adopt the same policies.”

“So it makes no sense for other governments to complain about China’s dominance in this market now. We could have, should have, but didn’t. That’s the reality.”

Lalonde and Roche say the European Commission’s tariff decision will ultimately hinder the EU from achieving its goals Complete decarbonization By 2050.

“Raising the price of electric cars will fuel skepticism about the long-term prospects of electric vehicles. It will dampen demand. And it will hinder the achievement of one of the most challenging objectives of the European Green Deal,” Roche said of European Commission President Ursula von der Leyen’s flagship plan.

He added: “It is difficult for me to understand what the committee is trying to achieve by taking these actions at this time.”

However, the comments from the two former politicians stand in stark contrast to those from other stakeholders since the commission’s announcement last week.

European Commission explain The European Union has decided to impose temporary tariffs of up to 38.1% on exports from Chinese electric vehicle producers (on top of a 10% tariff currently in place) after finding that huge state subsidies received by these companies had led to serious distortions in the European market.

China Current production About 80% of the world’s solar panels and two-thirds of its electric cars and wind turbines are sold at prices that European producers cannot match.

Analyst Researchers at Brussels think tanks Bruegel and the Centre for European Reform told European Events last week that tariffs on Chinese exports were merely in line with measures enacted in other jurisdictions and that the announced duties were still too low to have a significant impact on Chinese exporters.

Warning against upgrading

The former official made the remarks Trade tensions rise A rift has emerged between Beijing and Brussels, with EU policymakers claiming that China’s cheap green technology exports are unfairly subsidized and pose a threat to Europe’s shaky industrial base.

China responded on Monday Announce An anti-dumping investigation into European pork exports will affect the main exporting countries to the EU: Spain, the Netherlands, Denmark and France.

Lalonde, a former UN assistant secretary-general, warned of the dangers of a trade war and urged Brussels and Beijing to resolve the dispute through negotiations.

“The last thing we need is a trade war and escalating tariffs. So I think it is more desirable to resolve the complex issues through bilateral negotiations,” he said.

Lalonde also suggested that Chinese automakers should avoid new tariffs by moving production to Europe.

“If I were to give any advice, it would be that they should ally with local manufacturers, invest in Europe and have the same rights as European manufacturers,” he said.

Chinese automakers enter European market

China Economic Information Service and the European Union Chamber of Commerce in China (CCCEU) released the results of a survey of 30 electric vehicle companies and institutions on Wednesday, which was provided by the co-organizers of the Brussels event. Announce According to data published by the European Commission in September 2023, 73% of companies reported a decline in sales and 82% reported a decline in investor confidence.

“Chinese investors face more uncertainty and have become more cautious in their investments,” the China Chamber of Commerce report said.

While the EU’s actions appear to have “diminished enthusiasm for such efforts,” the report said “increasing European localization remains a long-term strategic goal for these companies.”

Overall, Chinese automakers are establishing a larger foothold in Europe.

In December 2023, BYD announced that it would open a factory in the southern Hungarian city of Szeged, becoming the first Chinese automaker to set up production in Europe.

Another major Chinese automaker, Chery, also announced in April that it would set up a factory in Spain.

The day after the European Commission made its tariff decision, Chery Executive Vice President Zhang Charlie famous Localizing production in Europe “should help us mitigate some of the impact of the new tariffs.”

(Anna Brunetti/Editing by Chris Powers)

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