Brussels, 9 September 2024 – Following Mario Draghi’s presentation of his report on Europe’s competitiveness, Climate Action Network (CAN) Europe is urging European leaders to focus on a green industrial policy that secures long-term economic and environmental sustainability. While Draghi’s report acknowledges that climate and industrial policies should be mutually reinforcing and recommends some positive elements towards decarbonisation and circular economy, it falls short of addressing the need for an urgent, coordinated EU-level approach to tackle the climate crisis and energy security.
Chiara Martinelli, Director at Climate Action Network Europe, said:
“If this report is about an urgent and concrete radical change, the pathway pointed out needs to be based on truly addressing the climate emergency. The best way to survive in this EU’s ‘existential challenge’, as it was described by Draghi himself, is through a green industrial policy that stimulates the production of net-zero technologies, ends our addiction to fossil fuels by shifting towards 100% renewable energy sources, and reduces our material demand. Manufacturing high-quality, climate-neutral products that meet the highest environmental standards will be the EU’s greatest economic asset in the future.”
However, Draghi’s report lacks the boldness needed to drive such a transformation, for example by focusing on recycling measures when discussing circularity in energy-intensive industries, whereas the entry point should be on resource reduction targets to fit within planetary boundaries.
Similarly, the report’s recommendations for mobilising public finance and EU funds are insufficient for delivering a holistic Green Deal Investment Plan to reach ambitious decarbonisation targets. It is equally crucial to ensure that the future financing of industrial policy doesn’t reproduce the loose criteria of the Green Deal Industrial Plan and the Strategic Technologies for Europe Platform, through an EU-wide approach that strengthens public control and provides clear social and environmental conditionalities when channelling public funds to industry.
Lastly, the report proposes a “simplification” agenda, which for some parts contains worrying deregulation elements that are pitting climate and environmental goals against one another, for example granting temporary exemptions to environmental legislation until climate neutrality is reached. The report also questions the application of the polluter-pays principle by considering an extension of free allocations of the right to pollute (ETS).
Martinelli said:
“The green and just transformation is Europe’s best bet for lasting competitiveness. High-quality, climate-neutral products made with fewer resources will define Europe’s economic future, creating good jobs and protecting the planet, as highlighted in our letter to Draghi already in February.
Overall, we welcome Draghi’s idea to marry climate and industrial policies together but so far it seems that only the industry players were invited to the ceremony. Civil society and labour unions cannot be left out when designing the future of the EU’s green industrial policy.”
ENDS
—-
For more information and media requests:
Jani Savolainen, Communications Coordinator, jani.savolainen@caneurope.org
