On Wednesday 10 April, the European Commission presented its Communication on a series of dialogues initiated in October 2023 with European industry in order to meet the EU’s decarbonisation objectives and to begin “tailor-made” implementation of the European Green Deal.
“We need to ensure that this substantial legislative framework is implemented gradually and that the Green Deal is built on the ground”, said Maroš Šefčovič, Executive Vice-President of the European Commission in charge of the Green Deal.
He presented to the press the various issues raised by industry during nine clean transition dialogues. This Communication will be presented by the President of the European Commission, Ursula von der Leyen, to the Heads of State or Government at the Extraordinary EU Council meeting on 17 and 18 April devoted to the EU’s strategic agenda.
To date, the dialogues have focused on hydrogen, energy-intensive industries, clean technologies, energy infrastructures, critical raw materials, the forest-based bioeconomy, cities, clean mobility and steel (see EUROPE 13386/3). Other dialogues will take place in the future (see EUROPE 13387/8), Mr Šefčovič assured.
Efficient implementation and simplification
In order to monitor the regulatory framework, the Commission announced in its Communication that it will publish on a dedicated platform a series of key indicators to track and measure progress in the green transition, the competitiveness of the EU economy and the social transition.
It also wants to reduce the administrative burden and intends to set up a digital platform, overseen by the Secretariat-General, to identify obstacles to the deployment of clean technologies.
This tool will be “permanently open for comments and remarks from all stakeholders – whether industry or the social partners – where they can point out technological difficulties or certain inconsistencies (...)”, said Mr Šefčovič.
Affordable energy
Dialogue participants stressed the need to guarantee abundant and affordable energy, as retail prices for industrial electricity in the EU are currently two to three times higher than in the United States (2021-2023).
Certain sectors have specifically called for additional transitional measures to guarantee secure, low-cost energy, as well as a reduction in the network charges paid by energy-intensive industries pursuing decarbonisation strategies.
The industry has also called for the creation of ‘industrial clusters’ linking the largest manufacturing facilities with decarbonised or low-carbon energy production plants, hydrogen production facilities and infrastructures for capturing, storing, transporting and using carbon.
The participants also called on the Member States to reduce the level of taxes and levies on energy, which would, according to the Communication, “bring electricity prices down by around EUR 10-20 per MWh for industrial customers on average in the EU”.
According to the Communication, EU countries must also take steps to eliminate subsidies for fossil fuels, particularly in the form of tax exemptions or reduced rates.
Modern infrastructure
Over this decade alone, cross-border electricity transmission capacity is set to double.
Mr Šefčovič therefore stressed the importance of modernising and substantially expanding the electricity infrastructure, particularly at distribution level, given that 40% of the EU’s distribution networks are over 40 years old.
The Commission also stresses the importance of resilience requirements for public procurement and auctions, and plans to support the industry in developing a standardised demand for the cables, pipes and technologies needed to develop the energy network.
Funds for the transition
The Commission believes that the public sector must provide the right incentives for the private sector to play a leading role in deploying investment in the clean transition.
For the participants in the dialogues, it is also necessary to reduce the cost of raising capital, diversify financing options for businesses, propose new innovative financial tools and facilitate cross-border investment.
A solid European budget is also deemed necessary, as is better coordination of funding at EU level.
Single market
Finally, the Commission wishes to take advantage of the single market, in particular, for the aggregation of demand and the group purchase of strategic products, as Mr Šefčovič previously mentioned following the positive results of the group purchase of gas (see EUROPE 13360/21).
It also wants to ensure that the Carbon Border Adjustment Mechanism (CBAM) is properly implemented and to deploy carbon pricing on a global scale through enhanced diplomacy.
To see the Communication: https://aeur.eu/f/bp4 (Original version in French by Pauline Denys)