European Commission Unveils Long-Awaited ‘Made in Europe’ Act

EU industry chief presents the Industrial Accelerator Act

Stéphane Séjourné, the EU’s industry chief, presented the Industrial Accelerator Act (IAA) on Wednesday. The IAA aims to increase European manufacturing and industrial decarbonization with the help of the “Made in Europe” provision. This core part of the IAA seeks to channel public procurement money to EU-based companies. However, the initiative has been delayed three times, and regulations have been significantly watered down. With an incomplete definition of what “Made in Europe” means, one diplomat compared it to “trying to build a LEGO set without all the pieces.”

The original draft proposed ambitious measures mimicking China’s industrial policies, but later versions walked back strict controls. One of the most significant challenges has been deciding who qualifies as a “trusted partner” of the EU. After recent free trade deals with India and Mercosur countries in South America, those countries worry that the IAA could damage these relationships. Germany and nine other member states are calling on the Commission to simplify regulations, not add more to the mix. 

On the upside, the IAA could positively impact the green transition. The plan could stimulate demand for low-carbon steel and aluminium, despite higher prices. Domien Vangenechten, EU industry program lead for environmental think tank E3G, said, “Europe’s future competitiveness hinges on whether we make industrial decarbonization investable. The choice is clear: Reinvest in clean production in Europe or lose our industrial edge.”

***

Further reading: Brussels says its ‘Made in Europe’ act is ready for prime time. Here’s why it isn’t.

Bill Gates’ TerraPower receives historic permit to begin nuclear plant construction

TerraPower, a nuclear startup founded by Bill Gates, was granted a federal permit to begin construction on the first new U.S. commercial reactor in more than ten years. The Nuclear Regulatory Commission unanimously approved the project after several years of regulatory reviews and consultations. Construction will now begin at the proposed Kemmerer, Wyoming site, with hopes of being fully functional by 2031. 

Nuclear power has gained the interest of both U.S. political parties in the past few years; however, the biggest challenge for nuclear power in the U.S. is both time and expense. At the Vogtle nuclear plant in Georgia, two U.S.-built reactors arrived seven years behind schedule and cost twice the original estimate of $35 billion. Construction at the Wyoming plant is expected to cost $4 billion or more. At one-third the size of Vogtle’s reactors, the reactor will be 345 megawatts. Using liquid sodium instead of water, the reactor can operate at lower pressures and be cooled by air vents in an emergency.

TerraPower’s chief executive, Chris Levesque, said, “Today is a historic day for the United States nuclear industry. This is the first commercial-scale, advanced nuclear plant to receive this permit.”

***
Further reading: A Nuclear Reactor Backed by Bill Gates Gets Federal Approval to Start Building

South Africa invests $122 million in water conservation

The Rand ⁠Merchant Bank (RMB) and the Development Bank of Southern ​Africa (DBSA) have backed a 2 ​billion rand ($122 million) bond for water conservation projects. These projects aim to restore strategic water catchments in the country by eliminating invasive plants and reviving catchment areas. This five-year investment in ecological restoration should strengthen water security and lead to environmental improvements with an outcome-based facility. Mookho Mathaba, a climate finance specialist at DBSA, said, “The facility ​will support conservation of water catchments to ensure the ​health of these areas.” While South Africa is experiencing significant water shortages and constrained public finances, the need for private investment is growing. A study by the DBSA found that 256 billion rand (approximately $15.6 billion) is needed annually to improve the country’s water sector. The bond focuses on funding sustainable infrastructure in South Africa.  

***

Further reading: South African financiers develop $122 million water conservation bond

For the latest updates, visit our LinkedIn page

The EIB and the WTO sign a partnership to boost sustainable investment

The European Investment Bank (EIB) Group and the World Trade Organization (WTO) Secretariat signed their first partnership on Wednesday. The goal of the partnership is to increase sustainable investment and trade globally. The signed agreement includes the “EIB-WTO Trade and Investment Facilitation Initiative.” The initiative, developed with the European Commission, aims to boost trade and support investments in partner countries, specifically Sub-Saharan Africa. Through this partnership, critical sectors, such as health, education, job creation, sustainable growth, and the green transition, will receive much-needed investment.

Nadia Calviño, President of the EIB Group, said, “This agreement between the European Investment Bank and the World Trade Organization Secretariat will help turn trade policy dialogue into concrete, high-impact investments. It will help partner countries attract more and better-quality investment, while supporting reform and creating new trading opportunities for EU businesses.”

***

Further reading: EIB and WTO sign first agreement to strengthen cooperation on global trade and investment

Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the Cover Photo: European Parliament seats in Brussels. Cover Photo Credit: Wikimedia Commons