European Commission President Ursula von der Leyen attended a closed cabinet meeting in Germany on Sunday.
It came just days after a decision to phase out internal combustion engines in Europe was postponed due to German demands.
After the meeting, Von der Leyen said it was important to invest in the clean energy sector in Europe.
“We must focus on the fact that in the future we will maintain our position as a world leader in clean energy. For which it is necessary to improve the competitiveness and legal framework conditions for the sector,” she said.
Von der Leyen said the EU was engaged in “constructive dialogue” with Germany on the controversial plan to ban the manufacture of internal combustion engines in vehicles by 2035.
“There is full support for the principle of technological openness, but this must also always be balanced with our climate policy goals,” she stressed.
Von der Leyen is due to meet US President Joe Biden on March 10, when they will discuss clean energy and supply chains.
The European nations are worried about the impact that the US green subsidy system will have on European companies.