ARKANSAS, Oct 24 (Future Headlines)- The European Union (EU) is currently without what it deems “very clear evidence” to initiate a formal investigation into the practices of China’s wind power industry, despite concerns about the sector’s competitive edge against Europe’s wind power industry, an EU official has stated.

A leaked proposal regarding wind energy last week revealed the EU Commission’s intention to investigate foreign subsidies as part of an action plan aimed at supporting the EU’s ailing wind industry. This industry has recently lost its leadership role. While the EU Commission is interested in probing foreign subsidies, particularly from China, EU officials have clarified that the EU needs stronger evidence to proceed formally.

The official expressed how the EU’s decision to investigate China’s electric vehicle (EV) industry took China by surprise and altered the political tone of its dealings with the EU. In response to concerns about cheaper Chinese EVs “flooding” the European market, the EU launched an investigation to consider imposing punitive tariffs on these vehicles.

However, EU officials said that the EU lacked the necessary basis to investigate China’s wind power sector further. “At this stage,” the Commission requires clearer evidence of unfair practices, including specific reports and indications. In particular, it focuses on concerns related to financial conditions, such as deferred payments or payment upon electricity production, which raise questions but aren’t yet considered substantiated evidence of trade violations.

Europe has faced growing competition in its wind energy industry, particularly from China. Factors contributing to this competition include inflation and global competition, notably from China. While EU President Joe Biden’s Inflation Reduction Act had a significant impact on the EU last year, the EU is increasingly concerned about competition from Asia, which is perceived as a bigger risk to Europe’s clean energy sector due to what the official cited as “lack of transparency and subsidies.”

Many of Europe’s primary turbine manufacturers reported operating losses in 2022, which jeopardized the EU’s renewable energy objectives and energy security. Last year, final investment decisions regarding offshore wind farms were also on the decline.

The EU official emphasized the significance of addressing these challenges to protect the region’s renewable energy industry and prevent the loss of its leadership in the wind power sector. The Commission is thus determined to take action to support and strengthen the European wind energy industry. The official commented on the uniqueness of this effort by the Commission and the importance of ensuring that the EU maintains a robust presence in the wind energy sector.