Brussels – Massively increase the deployment and integration of all renewable and low-carbon energy sources and the necessary infrastructure; Close the investment gap; Secure the hydrogen value chain; Continue to accelerate and simplify the authorization process; Address carbon cost differentials and ensure effective implementation of Cbam; Take measures to close the energy competitiveness gap; Promote industrial decarbonization through effective demand-side measures. It is BusinessEurope has drawn up seven proposals and called on EU politicians to act “urgently” in the next political cycle.
The European Industrialists Association said that Europe’s energy policy and industrial landscape “are at a critical juncture” and that the recent energy crisis has highlighted “significant vulnerabilities in Europe’s energy supply, leading to significant increases in energy costs for European companies.” Against this backdrop, it commissioned global economic consulting firm Compass Lexecon to assessEurope can achieve its climate and energy goals in a cost-effective way while remaining internationally competitiveBusinessEurope set out seven actions based on the report’s findings, noting that “the report’s findings send a clear message: to achieve this outcome, a strategic review of the EU’s energy and climate policy is necessary”.
“High energy prices continue to be a serious impediment to the global competitiveness of European companies and industrial production. Ensuring energy prices are competitive will be key to protecting Europe’s industrial base“,Announce Markus J. Beyrer, Commercial Director Europe“Studies show that even with a more favorable EU energy policy transition by 2050, energy costs in Europe will be at least 50% higher than in the United States, China and India. This will put European companies at a serious competitive disadvantage compared to these major competitors, which is why Urgent action is needed at European level to close this gapso that Europe can achieve climate neutrality by 2050 without deindustrialization,” he pointed out. “First, we must decisively address carbon cost differences and energy competitiveness gaps. We also call for the massive deployment of all necessary energy and infrastructure“This will not only improve the security of Europe’s energy system, it will also help reduce the overall costs of the transition. For example, our research finds that wholesale energy prices could fall by almost 40% when renewables are developed in the cheapest locations and barriers to their development are removed,” he said.
BusinessEurope therefore put forward seven proposals. The first one is about the diffusion and integration of all alternative sources:European energy policy must therefore focus on ensuring adequate supply of all power generation resources and infrastructure. In this context, it is crucial to ensure technological neutrality at European level, recognizing that different complementary means are needed to reach level zero,” Business Europe writes. The second element, bridging the gap:Europe’s ability to mobilise more private investment to build the necessary production capacity and essential infrastructure will be key to achieving net zero targets. Measures to improve overall investment framework conditions are key and must be the main focus.”
3. About hydrogen: “The results show that by 2030, green hydrogen produced by electrolysis will still be much more expensive than grey and blue hydrogen. Therefore, The EU must take a two-pronged approach in the future: it must ensure investment certainty and industrial demand for green hydrogenas it remains an important source of hydrogen for a decarbonized economy by 2050. ” Point 4 continues Speed up and simplify the authorization processthe fifth involves work Ensure the effective implementation of the carbon border adjustment mechanism: “In-depth monitoring of Cbam’s implementation is essential to ensure that carbon leakage is prevented.”
Finally, the sixth action involves the following measures: Filling the energy competitiveness gap – “Further measures are needed to reduce energy costs in sectors at risk of relocation and investment flight” – The seventh involves Promoting industrial decarbonization through demand-side measures – “The implementation of sustainability criteria for public procurement in all member states will stimulate demand for clean and decarbonized products in Europe.”