As the race for the acquisition and rights to critical minerals intensifies, tensions between the US and EU have been increasing. The competing world leaders, president Joe Biden, and European Commission president Ursula von der Leyen US have agreed to mutual discussions with the aim to solving the impasse and improving global stability.
The controversy involves the newly minted US Inflation Reduction Act (IRA). The IRA is intended to promote the development of clean energy industry in the US by offering subsidies to companies who invest locally. The IRA, amongst others goals, aims to contribute the reduction of carbon emissions by 40% by 2030. An investment of $360 billion earmarked for Energy Security and Climate Change programs over the next 10 years will reduce energy costs and increase the production of clean energy.
While the US is offering incentives to invest stateside, the EU’s heavy handed taxation regulations have weighed down heavily on energy giants based in the EU. Recruitment of Green Energy Professionals is on the rise on both continents and competition to recruit the best talent to fill Green Tech jobs stiff.
As competition for electric vehicle (EV) production grows, access to clean energy production becomes key to gaining a competitive advantage. Current electric vehicle production statistics have the EU ahead as it claims 25% of global production. The US lags with 10% of global EV production and 7% of global battery production.
In response to IRA, EU has announced the Green Deal Industrial Plan, an incentive to provide financial support to companies investing in green tech. The Green Deal Industrial Plan has four components. Providing a simpler regulatory environment to fats track permits and strategic projects. The Critical Raw Minerals Act complements this by ensuring access to the critical minerals needed in the manufacture of Green Technologies.
Secondly, the EU plans to provide faster access to funding required by companies investing in Green Tech. The third leg aims to upskill Europeans to be able take advantage of the new career horizon. It is estimated that 35% to 40% of all jobs could be affected by the Green Energy Transition. The US demand for Energy Transition professionals exceeds the available local candidates and currently EU professionals are being lured with attractive packages to Green Energy jobs in the US with the EU unable to compete.
Finally, the EU hopes to open global trade and develop resilient supply chains internationally with established EU partners, including the US, to provide global energy stability.
If you are a Green Tech, Critical Mineral Professional looking to advance your career, contact GateSource HR here to discuss current international and local opportunities.
