EU Leaders Want More Green Industry In Europe, Draft Shows

By Kate Abnett

BRUSSELS (Reuters) - European Union leaders will call this week for a greater focus on manufacturing green technologies in Europe, as competition to produce electric cars and wind turbines heats up with China and the United States, a draft statement showed.

EU countries' leaders meet in Brussels on Thursday for a two-day summit, where they plan to decide who should take the bloc's top jobs for the next five years, and give guidance on policy goals.

A draft of that guidance, seen by Reuters on Tuesday, reflected a growing wish among European policymakers to support European industries to manufacture the technologies needed to meet climate goals.

"We will create a more supportive environment for scaling up Europe's manufacturing capacity for net-zero technologies and products," the draft said, adding that Europe's green transition should focus on keeping industries competitive.

Other green topics were less prominent in the draft, which did not specify whether leaders intend to strengthen EU climate policies in the next five years, or invest more in adapting to worsening climate change risks from floods and heatwaves.

One of the next European Commission tasks is to propose a legally binding target for the EU to cut emissions by 2040. This was not mentioned in the draft.

Two EU diplomats said some governments have sought to reduce the documents' focus on Europe's green agenda, which has faced opposition in recent months from right-wing and far-right politicians.

Gains for those parties in this month's European Parliament election are set to make it harder for the EU to pass ambitious climate policies in the next five yeas, lawmakers and officials have said.

Months of protests by farmers have added to EU policymakers' wariness about targeting the sector with new rules to encourage more environmentally-friendly practices.

"The European Union will promote a competitive, sustainable and resilient agricultural sector that continues to ensure food security, and champion vibrant rural communities," the draft said, adding that the bloc would continue to protect nature.

The document said EU countries will need to invest more in shifting sectors off fossil fuels and onto electricity, as well as in power grids and energy storage.

(Reporting by Kate Abnett; editing by Barbara Lewis)