The Art of the (Clean Industrial) Deal – enabling a clean and competitive EU industry
In the face of geopolitical shifts, not least those driven by the second Trump administration, the EU needs to secure its own green industrial base and foster new alliances. The European Commission’ proposal for a Clean Industrial Deal, central to its new competitiveness agenda, needs to spell out how Europe will create the enabling conditions to transform Europe’s industrial landscape to this end.
Central to success of the Clean Industrial Deal is a thriving cleantech manufacturing base, which can help Europe reduce emissions, create quality jobs, and enhance economic resilience. Analysis from the European Climate Neutrality Observatory (ECNO) reveals critical challenges for EU industry that can inform policy-making under the Clean Industrial Deal.
Draghi: EU competitiveness needs a coordinated push for the green transition
The manufacturing sector – a historic driver of economic growth – is now central to energy, climate, and economic policies. Nations are competing to harness clean technology manufacturing for economic security, jobs, and resilient energy transitions. As the world’s largest economies are deploying public funds and institutional resources to build up domestic cleantech manufacturing capacity, now is the time for Europe to make a coordinated effort to keep up.
It was already back in July, in her speech on the Political Guidelines for 2024-2029 that Commission President Ursula von der Leyen announced the Clean Industrial Deal as the cornerstone of the first 100 days of her second term. She was responding to a growing number of voices, from national capitals, industry leaders and unions, concerned over investments moving away from Europe, plant closures and job losses. In September, Mario Draghi’s landmark report made clear the urgent need for action, built on three core pillars: 1) to closing the innovation gap with the US and China, 2) integrating decarbonisation and competitiveness into a coordinated industrial strategy as well as 3) focusing on security and reducing dependencies.
The Clean Industrial Deal is thus informed by the understanding that EU competitiveness correlates with a continued and coordinated effort to implementing a just, green transition. To succeed, Europe needs a sound understanding of current bottlenecks and specific areas for targeted policy intervention. This is central to the mission and work of the ECNO.
