German Chancellor Olaf Scholz is supportive of a joint EU funding solution among EU nations in response to the US’ subsidies for green technology. 

Citing a draft strategy proposal, Bloomberg reports that Scholz is to urge the EU to set up a joint financing instrument among EU nations in order to compete with US subsidies for renewable energy solutions.

Subsidies of this kind will ensure that EU nations with tight budgets aren’t left in the dust due to the cost of setting up renewable projects such as wind installations and other green energy forms. 

”We need a European industrial investment initiative with a special focus on future technologies, the expansion of renewable energies and the promotion of industrial innovation,” notes Scholz’ party, the Social Democrats, in the draft, according to Bloomberg News.

Other financing tools enabling joint investments should also be considered thoroughly, according to the party.

The proposal is a direct response to the US President Joe Biden’s USD 370bn green package, which also comes with offers of subsidies for setting up renewably energy, including wind farms.

The package has attracted criticism within the EU, given that the subsidies are viewed as unfair discrimination against European companies and bait for green industries to cross the Atlantic.

EU heads of state will convene next month to hold talks on a response to the US package, reports Bloomberg News.

Immediately following the news, the shares of two renewable energy giants appreciate. 

Turbine manufacturer Vestas’ share price goes up 5.4% to DKK 209.50 (EUR 28.2) while Ørsted’s share price increases to DKK 668.80.

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