European Industry Urgently Calls for Policy Action to Secure Energy Competitiveness and Climate Goals

Europe’s industrial future is at a critical crossroads. The International Federation of Industrial Energy Consumers (IFIEC Europe) is sounding the alarm — immediate, coordinated policy measures are essential to restore competitiveness, ensure Europe’s strategic autonomy, and meet our climate commitments.

Why Action Can’t Wait
Europe’s energy crisis demands more than piecemeal solutions. No single fix will do. That’s why IFIEC emphasizes the need for a short-term, strategic approach supported by both EU institutions and Member States.

With the overall aim of minimising total energy system costs, we’ve outlined ten urgent policy recommendations to keep Europe’s industry thriving while advancing toward climate neutrality in 2050.

Top 10 Policy Calls to Action

1. Make the Tripartite Approach a reality ! — Foster collaboration among EU institutions, Member States, energy producers, and industries through tripartite contracts to develop tools that protect competitiveness on the road to climate neutrality.

2. Strengthen Energy Market Integration — Improve cross-border energy trade, provide clearer price signals, and attract investments by making internal markets more efficient.

3.Cut Grid & Storage Costs — Lower transmission, distribution, and storage fees, and explore innovative financing options to prevent additional costs for the industry.

4. Implement Efficient Demand Response Policies — Create technology-neutral incentives that enable industries to be flexible and responsive, aligning with upcoming regulations and considering economic and technical constraints.

5. Accelerate Low-Carbon Energy Projects — Boost investments in decarbonized technologies, renewables, nuclear, and CCUS, focusing on demonstration projects and emerging technologies to speed up decarbonization.

6. et Realistic Climate Targets — Support the 2050 net-zero goal but push for pragmatic 2030 and 2040 milestones that safeguard economic viability and industry competitiveness, especially for green hydrogen.

7. Plan Beyond 2039 — Develop a practical framework for the EU Emissions Trading System (ETS) post-2039, incorporating international cooperation, CCUS, and credible greenhouse gas accounting.

8. Address CBAM Export Concerns — Establish clear protections for exporters under the Carbon Border Adjustment Mechanism and tackle risks of circumvention in global supply chains.

9. Mitigate Rising Energy Costs — Reduce energy taxes, fully compensate all sectors subject to delocalisation for indirect emissions costs, and unlock funding from institutions like the European Investment Bank to accelerate decarbonization efforts.

10. Simplify Permitting Processes — Fast-track approvals for energy infrastructure projects, especially cross-border, offshore, and LNG initiatives, to ensure timely development.

A Call to Action

At the EU Energy Week 2025, IFIEC actively participated in shaping the debate, co-organizing a high-profile session with Cefic that drew a large audience and sparked vital discussions on energy security, competitiveness, and climate ambitions. We also actively participated in the 40th European Electricity Regulatory Forum in Florence, the 39th European Gas Regulatory Forum in Madrid, the 11th Energy infrastructures in Copenhagen, and the 15th Citizens Energy Forum, advocating for policies that balance energy transition and climate ambitions with industrial resilience and European strategic autonomy.

Europe’s industrial strength depends on swift, decisive policy measures. IFIEC urges EU and national leaders to act now — to prevent further decline, protect jobs, and secure a sustainable, competitive future.

The time to act is now. Europe’s industry and climate future depend on it!