The European Commission has presented its Clean Industrial Deal which aims to accelerate decarbonization while securing the future of manufacturing in Europe.
President Ursula von der Leyen said: “Europe is not only a continent of industrial innovation, but also a continent of industrial production. However, the demand for clean products has slowed down, and some investments have moved to other regions. We know that too many obstacles still stand in the way of our European companies from high energy prices to excessive regulatory burden. The Clean Industrial Deal is to cut the ties that still hold our companies back and make a clear business case for Europe.”
The Deal focuses mainly on two closely linked sectors: energy-intensive industries and clean tech. Circularity is also a central element of the Deal to maximize EU's limited resources and reduce overdependencies on third country suppliers for raw materials.
ECSA: Reduced Reporting Burden Welcomed
European Shipowners (ECSA) has strongly welcomed the recognition of shipping under the five sectors across which the Clean Industrial Deal should be implemented. It is key for the competitiveness of the European industry to implement the Commission’s commitment and reduce reporting burden by at least 25% for all companies and at least 35% for SMEs, which are the backbone of the European shipping industry.
The launch of a new mechanism under the European Hydrogen Bank to de-risk investments in fuels for shipping is also a positive development, says ECSA. Leveraging EU and national ETS revenues is essential to build industrial capacity in Europe and to bridge the immense price gap between conventional and clean fuels that can be up to five times more expensive. In this regard, grants- and auctions-as-a-Service mechanisms can help pool national ETS revenues to support these objectives.
“This is the time for urgent action to make the necessary investments in clean tech and fuels, to maintain the international competitiveness of our industry and to enhance the security of our continent,” said Sotiris Raptis, ECSA Secretary General.
Danish Shipowners: Positive About Green Fuels
Danish Shipping welcomes the focus on increasing and lowering the cost of renewable energy but also highlights the need for a much stronger effort from the EU to scale up the production of green fuels, particularly for shipping.
“The Commission is focusing on exactly the right areas: competitiveness and green transition. These are fields where Europe has huge untapped potential – but where we also risk being left behind by the US and China if we do not act now. There are some excellent initiatives, such as a strong focus on the large-scale deployment of renewable energy and lower energy prices. And it is very positive that there is an emphasis on the production of green technology and green fuels within the EU. However, I need to see concrete plans for a massive scaling up of green fuel production. Without green fuels to power our ships, we will never achieve our goal of climate-neutral shipping,” said Anne H. Steffensen, CEO of Danish Shipping.
Among the other measures of particular significance for shipping are improved opportunities for EU funding, including national state aid for green fuel investments, new contractual frameworks between buyers and producers, international trade and investment partnerships, such as those ensuring global green corridors, as well as increased demand for hydrogen to help produce low-emission fuels for shipping.
Ports: Positive About Permitting Procedures
The European Sea Ports Organisation (ESPO) welcomed the Clean Industrial Deal, saying the document is a first but important step to advance on the decarbonization track, while making Europe stronger and more competitive.
Europe’s ports support the Commission’s intentions to intensify efforts to ease permitting procedures in Europe, the willingness to look into a more pragmatic approach to the definition of low carbon hydrogen, the proposal to identify and focus on industrial clusters, the initiatives regarding circular economy and the plans to lower the energy prices.
Europe’s ports also back the Commission’s understanding that the demand side needs to be boosted to build the business case for decarbonized products. Ports share the view that there must be a market to successfully attract investors.
“Ports are not only hubs in the supply chain, but through their hub function they are also clustering many industrial activities. We see in the Clean Industrial Deal launched today a lot of understanding of the challenges to combine decarbonization and competitiveness in Europe. The document is in that sense a good first step, but a lot will depend on its concrete implementation,” says Isabelle Ryckbost, ESPO’s Secretary General.
“To give an example, the last years, important legislative efforts have been made to ease permitting procedures, in particular through the Net-Zero Industry Act and RePowerEU, but very little has changed on the ground. On the contrary, new sectoral legislation risks to further complicate and delay these processes.”
Hydrogen Europe: Positive About Demand-Side Measures
Hydrogen Europe says the Deal shows the Commission wants to support industry efforts to reach 2030 targets and understands that more demand-side measures are required to do so. Project labelling and incentives for decarbonization projects will be key. A better use of the EU’s Single Market to ensure lead markets for low-carbon products through improved labelling and procurement rules will strengthen the business case for products like green steel or green ammonia.
“By incentivizing demand and rewarding early movers, looking at the pull over the push, the Clean Industrial Deal can jumpstart Europe's clean technology sectors, including hydrogen. But we must turn words into actions! If there is no positive development in the next 18 months, we are all but guaranteed to miss our 2030 climate targets. Focusing on demand and simplifying production rules and access to funding for clean technologies is paramount if we are to prevent this failure,” said Jorgo Chatzimarkakis, CEO of Hydrogen Europe.