Support of Ukraine, punishment of the Russian Federation and overcoming the energy crisis. What is Europe concerned about

The President of the European Commission Ursula von der Lien spoke at the annual World Economic Forum in Davos. Further, the text version of her speech has been stunning the world for almost a year. On that fatal February morning 2022, many predicted that Kyiv would fall in a matter of days. But then they forgot to take into account the moral and physical courage of the Ukrainian people. Ukrainians, no matter what, were able to resist the Russian invasion and repel the aggressor.

Even Russia's most severe attacks on civilian population or cruel winter did not shake the determination of Ukrainians. Over the past year, Ukraine has stirred up the world and inspired Europe. I assure that Europe will always be with Ukraine. Many doubted whether Europe would remain so adamant, but today Ukraine is a candidate country for joining the European Union. European countries are providing Ukraine with more and more weapons.

About 4 million Ukrainians who fled from the war were found in Europe. During this year, the democratic world has put into force against Russia the strongest sanctions in history, which will imitate the Russian economy into recession for decades, and its industry has no access to any modern and critical technologies. The crimes committed and committed by Russia in Ukraine will not go unpunished.

And we will not dwell in our adamant assistance to Ukraine now and in preparation for long -term efforts to rebuild the country after the war. In support of my words, on January 16, the European Commission provided financial support to Ukraine of 3 billion euros. It is the first tranche of our help, worth 18 billion euros for 2023, the largest in the history of microfinance to third countries.

It is a powerful signal that will increase Ukraine's financial security, help to pay the salaries to state employees and provide the work of hospitals, housing and school services. Europe's reaction to war in Ukraine is an example of how our union united when it was the most need. Net Zero's policy a year ago, Europe was very dependent on Russian fossil fuel, this dependence has been accumulated for decades.

This made European countries vulnerable to reducing fuel supply, rising prices and, of course, vulnerable to manipulating the market by Russian President Vladimir Putin. In less than a year, Europe has overcome this dangerous dependence. We have replaced 80% of Russian pipeline gas. In parallel, we filled our gas storage facilities. We have reduced gas demand by more than 20% from August to November 2022 and jointly reduced prices for it faster than expected.

Being at the peak in August, prices reached 350 euros for megawatt-hour. This month, European prices for natural gas fell by 80%. This is below the pre -war level in Ukraine. Europe once again showed the power of its collective will. However, there should be no illusions, the previous years were actually difficult for both the population and business: first the pandemic, then the war of Russia against Ukraine.

But that's not all, and we will have to show the same determination when we are in touch with further crises. As stated in the report of the World Economic Forum on Global Risks by 2023, increased inflation will increase the cost of living and doing business. We see that energy is used as weapons, we see the threats of trade wars and the return of confrontation geopolitics.

In addition, climate change is already too expensive to humanity, and we do not have a resource for losses during the transition to a pure economy. That's what I want to talk about. Net Zero policy (reducing greenhouse gas emissions as close to zero. - Ed. ) Already have huge industrial, economic and geopolitical changes. Undoubtedly, it is the fastest and most pronounced transformation in our entire lives. It changes the nature of business, the nature of the industry.

But we stand on the threshold of something much bigger. Just think, in less than three decades, we want to achieve Net Zero's result, but this achievement means the development and use of a number of new clean technologies in our economy. In transport, construction, production and energy. The following decade will be the largest industrial transformation of our time, those who develop and produce the latest technologies will be the basis of the future economy and will be the most competitive.

The scale of opportunities is obvious to everyone. International energy agencies estimated that by 2030 the market of environmentally friendly energy technologies will be approximately $ 650 billion a year. This is more than three times more today. In order to get ahead of competitors, we need to continue to invest and strengthen our industrial base and make Europe more favorable for investment and innovation, and this is what investors look closely at different markets for clean technologies.

In Europe, we have already taken the first step in this direction by introducing a European green course. It is a set of political initiatives issued by the European Commission for the general purpose of making the European continent climate by 2050. This is an unprecedented investment in clean technology in all green transition sectors. Cleantech (pure technology) is now the fastest growing investment sector in Europe, between 2020 and 2021 it has doubled its cost.

The good news for our planet is that other great economies of the world are activating in this core. The Green Transformation Plan is aimed at helping to attract up to 20 trillion yin (about 140 billion euros) through environmental bonds. India proposed production incentives to increase competitiveness in sectors such as solar energy and batteries. The United Kingdom, Canada and many other countries have approved their investment plans in pure technologies.

And, of course, we all know about the law on inflation in the United States. The investment plan in net technology worth $ 369 billion. This means that only Europe and the United States together allocate almost 1 trillion euros to accelerate the development of pure energy economy.

These actions give potential to a significant acceleration of the path to climate neutrality, but it is no secret that some elements of the projection of the law on inflation reduced a number of concern about some target stimuli for companies. So that's why we work with our United States friends to find a solution. For example, that EU companies and electric vehicles produced in the EU can also benefit from inflation reduction.

Our goal should be to avoid interruptions in transatlantic trade and investment. We need to make sure that our relevant promotions are fair and mutually reinforced, and we also need to determine how we can get beneficial from these huge investments. For example, by creating a cross -section economy through the Atlantic, compensating for general standards. This means that we, Europeans, should also improve in the development of our own industry of pure technologies.

We have a small window to invest in clean energy, innovation and clean technologies before the fossil fuel economy is outdated. So, we now have a pandemic industry, supply chains and price shocks. We have an urgent need to move to Net Zero without creating new addictions. We have learned fossil fuel lessons and know that future investment decisions will be made now, depending on what we are doing today. We, Europeans, have a plan: Green Deal Industrial Plan.

Its goal is to make Europe home for clean technologies and industrial innovations on the way to Net Zero. This plan will cover four different areas: regulatory environment, financing, skills and trade. The first direction is that we need to create a regulatory environment that will allow you to quickly expand and create favorable conditions for sectors that are crucial for the Net Zero goal.

To do this, we will offer a new Net Zero sectoral law, which will define clear goals in the field of pure technologies by 2030, and the purpose will be to focus investments on strategic projects throughout the supply chain. Especially we will look at how to simplify and accelerate obtaining permits for projects for clean technologies. The second direction is funding and state aid. The third is the development of skills for transition. The best transition is as high as qualified workers manage it.

With the powerful development of new technologies, we will very much need skilled workers in this sector. The fourth direction will be to facilitate open and fair trade in favor of everyone. To provide net Zero technologies around the world, powerful and stable supply chains will be required. Our economies will always depend on international trade, as it accelerates the transition to the opening of new markets and access to what is needed for the industry.

We need an ambitious trade agenda, in particular by obtaining the maximum benefit from trade agreements that are already in force, for example, with Canada or the United Kingdom. We are working on concluding agreements with Mexico, New Zealand and Australia and making progress with Indonesia. International trade is key to help reduce costs, create jobs and develop new products. If trade is not fair, we must respond more rigidly.

China has stimulated the development of pure technologies and production with the key priority of its five -year plan. It's good. China is dominated by production sectors, such as electric vehicles and solar panels, which are important for the transition to Net Zero. But the competition in the Net Zero market should be based on equal terms.

China openly encourages energy -intensive companies in Europe and others to move all or part of its production to the PRC, promising cheap energy, low labor costs and a unique regulatory environment. We now need to reorient our approach to reducing risks, not to separation.

This means the use of all our tools to combat unscrupulous practices, including the new provision on foreign subsidies, and we will start investigating without hesitation if we believe that such subsidies are distorted by our purchases in other markets. We want to cooperate and work together. Climate change requires a global approach, but it should be a fair approach and equal conditions of the game. The history of pure technologies is still written.

For many previous years, when I came to Davos, I have heard many times that we are standing on the threshold of a period of creative crisis. The field of clean technology can be a source of creativity with proper support and incentives for companies to create and produce innovation. With the right focus on skills and people. With the right environment to maximize our leading innovative potential in the world. There is everything in Europe. Talent, research, industrial potential, investment.