On 20th February, 118 energy intensive companies, trade associations representing energy intensive industries and other organisations expressed their full support for a European Industrial Deal to complement the Green Deal and keep high quality jobs for European workers in Europe. As very clearly stated by the Belgian PM Alexander De Croo: “We need our industry for their innovation capacity. To come up with tomorrow’s climate solutions. That is why Europe should not only be a continent of industrial innovation, but should remain a continent of industrial production” .
How can we meet climate neutrality by 2050?
To meet climate neutrality by 2050 and the recently communicated 2040 target, Europe’s electricity production will need to multiply, and industry investments will need to be a factor six higher than the previous decade. This enormous challenge comes just as both large companies and SMEs face the most severe economic downturn in a decade, demand is falling, production costs increase and investments move to other regions.
The challenges that are being faced
A US economy that benefits from the financial support from the Inflation Reduction Act (IRA) and its ease of accessibility, a Chinese overcapacity and increasing exports to Europe all increase the pressure for the European industry even more. Our companies face this challenge every day. Sites are being closed, production halted, people let go. Europe needs a business case, urgently.
What can be done to improve this?
An Open Strategic Autonomy for a competitive and resilient Europe is crucial for its transition in an ever changing geopolitical landscape. It can however only be achieved if also basic and energy intensive industries remain and invest in Europe. Without a targeted industrial policy, Europe risks becoming dependent even on basic goods and chemicals. Europe cannot afford this to happen.
The EIUG therefore supports and signed the Antwerp Declaration for a European Industrial Deal.