Brussels, 1 December 2021
On the 1st of December, the European Commission and the High Representative for Foreign Affairs and Security Policy launched the Global Gateway, the EU’s €300 billion alternative to China's Belt and Road initiative.
The aim of the EU program is to help underpin the global recovery by mobilizing investments in digital solutions, clean energy and transport networks, as well as boosting health, education and research systems across the world.
Global Gateway will draw on the new financial tools in the EU multi-annual financial framework 2021-2027. The initiative will be financed by a mix of €18 billion in grants and €280 billion in investments from Member States, their development banks, the private sector and EU financing bodies, including the European Investment Bank, the European Commission said in a statement.
Further adding to its financial tool kit, the EU is exploring the possibility of establishing a European Export Credit Facility to complement the existing export credit arrangements at Member State level and increase the EU’s overall firepower in this area.
Global Gateways’ investment priorities are the following:
- Digitalization
The European Union will invest in fiber optic cables between countries, satellite communications and cloud infrastructure to better facilitate global cooperation, data sharing and AI development. The EU toolbox for the cybersecurity of 5G networks will guide investments in digital infrastructure. These will also be linked with standards and protocols that support network security and resilience, interoperability, and an open, plural and secure internet.
- Clean energy
The Commission plans to work with partner countries that have the potential to develop their renewable hydrogen production and promote the creation of competitive markets to enable such hydrogen produced outside the EU to be traded internationally without export restrictions or price distortions. It will also work with partner countries to invest in infrastructure for developing sustainable and resilient raw materials value chains.
- Transport
Global Gateway will promote worldwide infrastructure investments that create sustainable, smart, resilient, inclusive, and safe transport networks in all modes of transport, including ports, logistics and border-crossing points. It will implement transport infrastructure projects that foster the sustainable development of partner countries and reduce greenhouse gas emissions, as well as enable the diversification of their supply chains. Global Gateway will also seek to build on the EU’s position as the world’s transportation hub.
Global Gateway will foster convergence with European or international technical, social, environmental and competition standards, reciprocity in market access and a level playing field in the area of transport infrastructure planning and development. It will serve to enhance the recharging and refueling infrastructure for zero-emission vehicles and foster the supply of renewable and low-carbon fuels. It will serve to strengthen aviation and maritime links with key partners, while also setting new standards to enhance environmental and social sustainability, create fair competition and reduce emissions in those sectors.
- Health
In response to the pandemic, the new EU plan aims to help countries develop local vaccine manufacturing capacity and diversify their pharmaceutical supply chains.
- Education and research
The European Union wants to further invest in education globally, including the expansion of online learning.
To conclude, Global Gateway and the US initiative Build Back Better World should mutually reinforce each other, as the EU and the United States express their shared commitment to addressing climate crisis through infrastructure development that is clean, resilient and consistent with a net-zero future.