Driving the Clean Industrial Deal: France’s Leadership in Shaping a Sovereign and Sustainable European Industry

1. “Shaping a sovereign and sustainable European industry” represents an opportunity we absolutely cannot miss. Yet, some voices are urging us to pass by this opportunity to shape a sovereign and sustainable European industry.

These are challenging times for the environment and its defenders. In the United States, Donald Trump has once again withdrawn his country from the Paris Agreement on climate change, just as fires ravaged California and shortly after Hurricane Milton devastated Florida. The same adverse wind is blowing across France and Europe. Without questioning what is useful and what is expendable, some are calling for a backlash against the Green Deal. Unseasonably, this movement goes beyond mere statements from extreme parties. 

This year marks the tenth anniversary of the Paris Agreement on climate change. Despite some bad news, it serves as proof that our collective action can make a difference. Before the Paris Agreement, climate projections were estimating global warming of approximately 4-5 degrees. Today, these projections are around 2-3 degrees.

This is obviously still too much, and we are not moving fast enough. But it also demonstrates that our efforts are paying off, and that we need to intensify our efforts rather than succumb to the path of fatalism. 

The dissenting voices we are hearing are based on the wrong belief that “ecology is an obstacle to business”.

Between 1990 and 2020, the EU reduced its greenhouse gas (GHG) emissions by 32%, well above its -20% target. In 2023, EU total net GHG emissions decreased to 37% below 1990 levels. This illustrates that our economic actors are dedicated to decarbonization, and that they do not dispute the need to combat climate change. The EU GDP has grown by 68% over the same period, driven by the green industry.

So, why is ecology wrongly perceived as an obstacle to business? Ecology should not be confused with bureaucracy. Bureaucracy is an enemy of business, as it is of the ecological transition. An excessive accumulation of norms and standards is a burden.

 What we are hearing from economic actors is not that ecology is an obstacle to business. They ask for the respect of two crucial conditions: first, providing economic actors with regulatory stability over the medium term; second, providing them with level playing field. And they are right! As long as foreign economic actors who pollute have free access to the European market whereas our economic actors are making sustained efforts, the ecological transition is hindered.

2. France’s leadership aims to discredit voices that relegate the ecological transition and the move towards green industry to the background, as doing so would be a massive mistake.

The geopolitical context does not halt the climatic race against time: temperatures continue to reach record levels, natural disasters are recurring and increasing, biodiversity is declining with direct consequences on our ability to conduct business and even secure food supplies. 

Inaction comes at a cost far greater than those of taking action, both in terms of ecological impact and economic leadership.

If we do not act now, our continent’s competitive gap with China and the United States will continue to expand. We need to engage in the fight by adhering to what ecological and energy transition truly represent: sovereignty, independence, purchasing power, and the protection of European citizens – this is the essence of what ecology embodies.

Our economic and industrial future, along with our future growth, depend significantly on our ability to successfully execute this ecological and energy transition. China’s substantial subsidies for electric vehicles and solar panels are not offered out of philanthropy, but rather strategically, with the intent of increasing global reliance on them for these advancing technologies.

To achieve this ecological and energy transition, we face challenges of unfair competition: without a level playing field, the commitment of our economic actors will diminish.

The French Government was one of the first to address these issues, drawing attention to the subsidies provided to a multitude of companies: we must stop opening up our market to foreign economic actors while putting at a disadvantage our own actors, who must adhere to stricter norms/constraints and who lack equivalent state aid support. 

3. France’s leadership extends to both preventing Europe’s disappearance from the  global industrial map and advancing Europe’s green reindustrialization and strategic autonomy, thanks in large part to the Clean Industrial Deal.

As the European Union faces challenges to its economic competitiveness and political leverage, it is crucial to preserve its standing through a robust policy to shape a sovereign and sustainable European industry. Just as there are strong industrial policies in the United States and China, Europe is experiencing a shift, driven by French initiative, to reconcile the Green Deal with an Industrial Deal.

Through decisive leadership, France has significantly advanced Europe’s green reindustrialization and strategic autonomy. French efforts have strengthened the European Union’s strategic autonomy through four primary levers: first, by defending a technologically neutral approach for energy policy, particularly by acknowledging nuclear energy as a primary tool to decarbonize our economy; second, by setting clear targets, such as manufacturing benchmarks to develop European value chains, and by setting an achievable and realistic target for emissions reduction by 2040; third, by enhancing fair competition through mirroring measures and “debureaucratization”; and fourth, by ensuring financial support through the European Union state-aid framework and by mobilizing public and private investors from the European cleantech ecosystem for an ambitious commitment toward unlocking investments in clean technologies.

The Clean Industrial Deal is poised to enhance European industrial value chains, serving as a powerful lever for a greener, more competitive, and more resilient European industry. It comprises a cohesive package of measures aimed at boosting European industry while upholding high climate objectives.

To support clean technologies and counteract the continent’s industrial decline, the European Commission intends to quickly allocate 100 billion euros through the Clean Industrial Deal. These funds are earmarked for accelerating the decarbonization and electrification of energy-intensive industries, as well as fostering the development of clean technologies, which are deemed central to future competitiveness and growth.

In addition to lowering energy costs for businesses, the Clean Industrial Deal is designed to directly benefit European citizens by boosting demand for clean products “Made in Europe.” This will be realized through sustainability, resilience, and European preference criteria in public and private procurement. I fully endorse the objectives of the Clean Industrial Deal, spearheaded by commissioners Stéphane Séjourné, Teresa Ribera, and Wopke Hoekstra. It represents a clear opportunity to merge the imperatives of industrial competitiveness with decarbonization objectives.

Now, a quick and concrete implementation of the Clean Industrial Deal is needed, to contrast with the delayed implementation observed for some IPCEI – more than two years and a half between the beginning of the application process and the last funding decision. To be consistent with the announced ambition of the Clean Industrial Deal, the art will lie in achieving its effective implementation.

Faced with numerous urgent challenges ahead, Europe now holds all the cards; it’s up to us to play!