Europe needs a resilient and climate-neutral industry – one that is less dependent on geopolitical tensions and fossil fuels. The European Commission aims to increase the industrial share of total value added to 20% by 2035. This growth must go hand in hand with decarbonisation – only then will European industry remain competitive in a climate-neutral world.
The planned Industrial Accelerator Act must support this integrated approach, but the Commission's current proposal falls short of that ambition. Investment in low-emission basic materials production requires companies to be able to rely on steadily growing demand, supported by public procurement. A clear carbon price signal and a transparent steel label are furthermore essential prerequisites for creating green lead markets.
In this discussion paper, Germanwatch sets out four recommendations to key legislators to strengthen Europe's industrial resilience and long-term competitiveness.
