The European Union aims to position itself as the leading global destination and promote companies and sustainable technologies. This ambitious goal is part of the Pact for a Clean Industry, recently presented by the European Commission.
The plan aims to make decarbonization a driver of economic growth and reindustrialization for the continent. It is also designed for the 27 member countries to move towards a low-carbon economy and compete with giants like China and the United States.
“The Pact for a Clean Industry marks a significant change in Europe’s industrial policy. For the first time, public procurement is prioritized to boost green technologies produced on the continent,” says Neil Makaroff, director of the Strategic Perspectives think tank. “Resources will also be invested in European value chains, especially in areas where there are gaps, such as lithium refining, essential for battery manufacturing,” he adds.
Reducing costs and promoting competitiveness
The European Commission plans to mobilize over 100 billion euros in the short term to support this transition. One of the main objectives is to promote and offer stability to sustainable companies and reduce energy costs, especially in high-consumption sectors such as steel and cement, without neglecting households.
The pact also focuses on clean technologies, considered key to competitiveness and economic development. According to Cleantech for Europe, an organization representing green companies, this agreement is a positive step. “It brings a dose of pragmatism to the Green Deal, recognizing that private companies will be responsible for implementing the necessary changes to transform our economy,” says Victor Van Hoorn, the organization’s director.
Access to resources and challenges of the plan
Another highlighted aspect of the pact is ensuring access to essential raw materials. To achieve this, the Commission proposes measures such as joint purchases and diversification of supply chains, relying on reliable international partners. Additionally, it commits to using trade defense tools to protect European companies against unfair practices.
However, some critics fear that this plan may weaken the Green Deal, the flagship project of Ursula von der Leyen’s mandate. In response, the Commission reaffirms its commitment to achieving carbon neutrality by 2050 and reducing greenhouse gas emissions by 55% by 2030. It also aims for a 90% decrease in these emissions by 2040.
To highlight the potential of decarbonization as a development driver, the Commission points out that renewable energy projects could generate over 3.5 million jobs by 2030.
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