A business plan for a low-carbon, competitive European economy

The European Union needs to become the world's leading hub for green technologies. This is one of the key goals outlined in the Clean Industry Pact, unveiled by the European Commission on Wednesday.

Designed to enable the 27 member states to make the transition to a low-carbon economy and at the same time keep pace with their Chinese and American counterparts.

"The Clean Industrial Pact marks a significant change in European industrial policy. For the first time, there is a focus on European preference, especially in public procurement, to promote green technologies produced in Europe," explains Neil Makaroff, director of the Strategic Perspectives think-tank.

"For the first time, we will also be investing in value chains on a European scale, especially in areas where there is a lack of supply. Traditionally, we have no lithium refining capabilities, even though we need them to manufacture batteries," he notes.

Reducing energy costs

The institution is planning to secure over €100 billion in the short term. Its goal is to provide businesses with a clear outlook. The objective is to lower energy costs for companies, particularly those that consume a lot of energy, such as steel and cement producers, and also for households.

The institution also aims to take action in the clean technologies sector, which will be at the core of competitiveness and growth.

Cleantech for Europe, representing about twenty green companies, deems the pact a step forward in the right direction.

"It brings a dose of pragmatism to the Green Deal, by acknowledging that private companies will have to lead the implementation of the necessary transformations to our economy," says Victor Van Hoorn, Director of Cleantech for Europe.

Providing access to resources at the lowest cost possible

The Commission also aims to ensure access to essential raw materials and thus proposes the implementation of group purchasing or allowing companies to combine their purchasing requests.

It is also urging the EU to diversify its supply chains and turn to dependable international partners. The Commission emphasizes that it will not hesitate to utilize its trade defense tools to safeguard European companies in the event of unfair competition.

However, some people are questioning the goal of this plan. Critics are concerned that this strategy is a circuitous way of dismantling the Green Pact, the flagship project of Commission President Ursula von der Leyen's first term in office.

In response to these concerns, the Commission notes that its goal is to achieve carbon neutrality by 2050 and that it is maintaining its commitment to reduce greenhouse gas emissions by 55% by 2030. It also emphasizes its aim to achieve a 90% reduction in these emissions by 2040.

To emphasize the idea that decarbonisation is a driving force for growth, the Commission notes that plans for renewable energy should create more than 3.5 million jobs by 2030.