According to Reuters, the financing will be made of state aid and an European Sovereignty Fund and Ursula von der Leyen stated that the decision backs EU's Green Deal, aiming to make Europe an innovator and main developer of green technologies.

"The aim will be to focus investment on strategic projects along the entire supply chain. We will especially look at how to simplify and fast-track permitting for new clean tech production sites", according to the head of the European Commission.

The EU hopes to keep green industry members on the continent this way, due to the fact that they might be attracted by US' 369 billion dollars scheme for green tech production.

"To keep European industry attractive, there is a need to be competitive with the offers and incentives that are currently available outside the EU", von der Leyen added.

She also mentioned that not all 27 member-states of the EU will be able to financially support their industries equally, which is why EU funding will be needed as well, as this will help avoid the fragmentation across the bloc.

"To avoid a fragmenting effect on the single market and to support the clean tech transition across the whole Union we must also step up EU funding", the head of the European Commission said.

She didn't disclose yet exact details about the fund, as it is still a work in progress since September, and not all states approve of this idea, Germany being one of them.