Europe | Toward a clean and competitive European industry

Summary

European industry is facing several challenges: high energy prices have made it less competitive, external reliance on gas has become a geopolitical vulnerability, and climate risks call for a transformation of production processes.

Key points

• Key points:
• The European Commission’s response has been strong, with the Clean Industrial Deal and the Affordable Energy Action Plan promising to change the game rules over the next years by turning sustainability into a competitive advantage.
• This strategy is based on making European industry more competitive by reducing energy costs, generating quality employment and championing innovation in clean tech.
• Financing will be a key challenge. The Commission, through the Industrial Decarbonisation Bank, plans to mobilize more than €100 billion to create a cleaner industry. However, public-private coordination in investment will be decisive in channeling European savings.
• While the Clean Industrial Deal is certainly an ambitious step forward for European industry, achieving its objectives calls for coordinated governance and a sound financial framework. Europe has the opportunity to lead industrial decarbonisation at a global level, but it must ensure that the transition is both viable and equitable to succeed.

Geographies

Topics

Tags