Ladies and gentlemen,
Good morning everybody,
It’s a great pleasure to be here with all of you today.
I’ve seen the programme – it’s extremely packed.
You have an amazing line-up for this conference with MEPs, industry leaders, innovators, academics. A very warm welcome to each and every one of you.
We’re here in one of the most beautiful places in all of Brussels, the Palais d’Egmont. When I’m here, I’m always struck by the notion that Europe is sometimes referred to as ‘the museum of the world’. It’s true – we have a rich cultural heritage that we’re proud to preserve and showcase.
Look more closely, however. This building has been restored and reimagined for the 21st Century. Just like this Palace blends old and new, Europe has always been a union of tradition and innovation.
Today, as we drive clean growth, innovation, and a more sustainable future, this is more crucial than ever. Over the past few months, I’ve been listening closely to concerns of Europeans from all walks of life – and two clear messages emerge:
First, many of our citizens are deeply worried about the future of our planet and the impact of the climate crisis on their daily lives. They have valid questions. Will my children and grandchildren be able to live on a planet with rising sea levels? How will we deal with more frequent and extreme weather events?
Second, it sounds like a contradiction but at best it’s a paradox: they’re worried about the cost of living and climate policies, and how they will affect their lives and businesses. Will I be able to pay my bills at the end of the month? Will my business grow in a rapidly changing economy with ever increasing demands?
That is why, for this Commission, and for me, as the one responsible for Climate, Net Zero and Clean Growth, we clearly need to bridge and to marry these two areas. We urgently need to address the climate crisis, make Europe climate resilient and better prepared for climate risks. We also urgently need to unlock new markets, new opportunities, and new sources of growth.
In my view, and I said it many times before, it’s not a question of either / or. We can – and should – do both. The EU has always led the charge on climate change. We have to make sure we continue to do so.
But we must harness the momentum of the green transition to fuel net zero growth, create jobs, stimulate innovation, and propel EU competitiveness to new and higher grounds.
This is the reasoning behind the Clean Industrial Deal, which the Commission will bring forward in the first 100 days. The countdown is on since the 1st December. It’s currently in the making. I won’t be able to say that much about it yet. But I’ll use the opportunity today to give you a sense of where, in my view, we should be heading.
I’ll briefly talk about four key topics:
- Access to finance;
- Energy costs;
- Targeted actions in specific sectors;
- And sustainable carbon management.
Ladies and Gentlemen,
First on finance: We already have a strong foundation for a decarbonised and competitive industry. The EU ETS puts a price on pollution. It also generates billions in revenue each year to finance clean industrial investments. Just to give you a figure: Last year alone, Member States received around EUR 38 billion from the ETS. On top of that, thanks to CBAM, imports are going to be charged the same carbon price as EU products. We’ll prevent carbon leakage and further drive decarbonisation. While this is all great news, it still dwarfs our financial needs. The constant oversubscription of the Innovation Fund is a clear sign that there’s a stronger demand for financing. This is why the Clean Industrial Deal must unlock more resources. We need to de-risk industrial projects with a range of financial instruments. And we need to tap into private capital especially venture capital and private equity, where there is huge growth potential in Europe.
Ladies and Gentlemen,
This brings me to my second point. As we speak, high energy costs are a huge drag on Europe’s competitiveness. We have higher energy costs than most other competitive regions. We still rely on fossil fuels imported from outside the EU. That makes it harder for many of our companies to keep production costs down and compete on price. This is why we need more renewable energy – and we need it quickly – to meet the growing demand for affordable, clean power and drive down prices. And that is why the Clean Industrial Deal must unleash the potential of tools like Power Purchase Agreements and long-term contracts. Alongside this, we’ll have to be serious about investing in our grids and infrastructure.
Yesterday I was talking to people who are active in the recharging industry of cars. They can put the loading infrastructure in place. But they were describing in vivid terms that the next bottleneck will be the grid in many places in Europe. So it’s the next thing we need to solve. If we don’t, we won’t be able to integrate all the additional technology that we have available into our system. So we have to think about how we strive for more of a single market approach, one which encourages cooperation between Member States and prioritises investments.
Third, some sectors, like the hard-to-abate industries, will require targeted action to support their decarbonisation efforts. In some sectors, it’s more difficult than others because of where we stand in terms of technology. To address this, in my view, the Clean Industrial Deal should identify priority sectors for lead markets, paving the way for public support mechanisms at EU and national level. This will stimulate investment and drive demand for green products. Of course, if you do that, you will need to ensure a reliable and standardised approach to certification. Consumers need to be able to trust the environmental credentials of what they’re paying for. This will be the only way to make sure there is value for money for the things we do with taxpayers money.
Fourth and final point: Electrification is clearly very important. But the reality is that some industries will continue to emit carbon and use CO2 in the future. Our Industrial Carbon Management strategy published last February outlines the next steps to manage carbon more sustainably. But in my view, we’ll need to go further if we are to achieve net zero objectives. This means clarifying the rules and encouraging carbon capture. It means developing transport and CO2 storage infrastructures needed to decarbonise our industry. And it means finalising the framework for nature-based solutions such as carbon sinks, carbon farming and the bioeconomy.
Dear friends,
Before I leave, one last word on competition. I’m still of the school that competition truly is a good thing. It focuses the minds. It motivates people and business to push the boundaries of what’s possible. It drives innovation. And it offers consumers better quality for better prices. All this benefits individuals and societies and it has brought us in many ways to where we are today. But it is absolutely essential for our companies that competition, in our European geography, is good and fair. And it means that we need to act more rigorously if competition is unfair. If products are being heavily state-supported and being flooded into our marketplace. So we will need to make sure, also as part of the Clean Industrial Deal, that we do more in terms of enhancing the level playing field.
Ladies and Gentlemen,
At the start of my remarks, I spoke about how climate and economy are weighing on people’s minds. Rightly so. These are geopolitical times filled with uncertainty and volatility. And my view is that we’ve already seen the beginning of a geopolitical winter. And yet at the same time, I’m hopeful – because there is no place quite like the European Union. Yes, we have beautiful buildings, amazing history, and culture, like this palace. But as I said, the EU has always been a place where we marry tradition with renewal and innovation.
We have roots and we have wings. So let’s build on that. Let’s make sure that we put our dynamism, and our great assets – the largest single market in the world, a highly educated and skilled workforce – right at the centre of our policies. Because then truly everything is possible.
Thank you.
Source – EU Commission