The European Commission will soon be presenting a strategy to put industry in Europe on the path to carbon neutrality by 2050. The Industrial strategy will be realised together with a Circular Economy Action Plan.
Central in this approach is the need to improve the energy efficiency of industrial processes, as a major source of greenhouse gas emissions. In addition, promotion of new value chains and industries will be based on the circular economy principles.
The Action Plan will be integrating the sustainable development strategies in our business models and integrating environmental and social concerns into all aspects of decision-making as well as staying economically healthy and prosperous.
The Green Deal will have to be a growth strategy while reaching climate goals. Its industrial policy will therefore have to allow access to fast-growing markets while safeguarding jobs through innovation and new technologies.
These developments need a governance process that needs to be up to the task: adjustments are to be made to monitor technological and industrial change as well as identify future emerging strategic value chains. This would not only meet the Green Deal goals, but would also make the Union less dependent on imports, and strengthen its strategic autonomy.
Aside from having a major influence on the developments within in the European industrial playing field, the plans require significant levels of investment. The Sustainable Europe Investment Plan initiative, presented under the Green Deal, is expected to mobilize at least €1 trillion of sustainable investment over the next decade. In addition, the Just Transition Mechanism aims to mobilise at least €100 billion in investments to accommodate such changes and reach climate objectives.
The digitalising our economy is of key importance in order to achieve the much needed industrial transformation. It is estimated that digitalisation has the potential to cut global CO2 emissions by 20%. We need to leverage the link between digital and circularity, with the use of AI and the European Data Space.
The need for investment in digitalisation is also a clear example of the cross-sectoral aspect of these investments. The use of new technologies in the energy sector, as well as working on so-called “sector coupling” approach to further optimise our energy systems by better integrating renewables into our current energy mix through mobility, transport, industrial processes, and consumption.
The cross-sectorial aspect of it all is also reflected in the EU Circular Economy Action Plan, which aims to make circularity, or a closed-loop economical system, the new norm.
Lastly, energy-intensive industries especially, will need Commission support through extensive safeguards against global competition. Take the proposed carbon border adjustment mechanism, at European borders; This would make it possible to raise the cost of imported products, prevent environmental dumping avoid ‘carbon leakage’, and encourage our trading partners to align with European standards and norms, or to implement carbon pricing in their countries.
This issue of The European Files encourages the EU to take a comprehensive approach and engage each sector of the economy as an opportunity for growth under this new economic model. It is up to Europe to lead the necessary negotiations to create a greener world. An ambitious Green Deal trade policy will help internationalise EU standards and regulations to influence production and investment patterns worldwide. We have the opportunity to meet the challenge of a new industrial approach based on resource efficiency, circularity and innovation while being competitive and low carbon; We can no longer afford to waste this chance.
- The European sustainable industry strategy aims for low carbon technological sovereignty
- Climate neutral and green Europe has no alternative
- The implementation of a strategy to decarbonise the economy
- Green taxes and just transition
- Accelerate the development and financing of electromobility and energy storage in Poland
- How EU trade policy can enhance climate action
- The sustainable purpose of insurance
- Investing in the transformation to a modern and low-carbon economy
- What are the strategic value chains for Europe?
- 2020 will be a trial year for a greener and fairer Europe – Green New Deal intergroup
- Europe takes circularity to the mainstream: the change that the new Circular Economy Action Plan will bring
- Towards a circular industrial strategy
- EPR: a relevant and committed response to the challenges of packaging and paper circularity in Europe
- A sustainable industry for a circular and climate neutral economy:
- When competitiveness meets sustainability, synergy thrives
- Europe’s ecologic renaissance will be built upon its infrastructures
- Delivering the Green Deal in the European energy sector
- Green Deal: A Low Carbon Utility’s Perspective
- The Green New Deal as a lever for the competitiveness of our industrial system
- In a low-carbon world, energy technologies deliver more than power: they are an essential part of sovereignty
- No green transformation without sector coupling
- Expanding the EU Emissions Trading Scheme
- Climate neutrality for growth and jobs
- A European Innovation policy shaped to deliver the European Green Deal
- Greening industry for good
- Digital transformation cornerstone of a resource efficient and climate neutral transition
- The European Green Deal: a digital perspective
- A Sustainable Industrial Policy
- The time has come for Regions to undertake ecological transition and adapt to climate change. The example of Lille Metropole (MEL) and its climate budget
- Using European “Horizon Europe” research funds to accelerate the ecological transition
- An industrial strategy for sustainable growth