11 September 2024
On 9 September former European Central Bank Governor Mario Draghi released a report on Europe’s competitiveness. It’s right on the money on the energy transition – on the need for it and on what’s needed to deliver it.
Mario Draghi was ready to do “whatever it takes” to preserve the euro in 2012. His report on Europe’s competitiveness is no less clear-sighted.
The big picture is spot on – the energy transition needs a step-change in grids, permitting, finance, supply chains, level playing field and innovation. And the detail is admirable – piercing diagnosis of problems and clear recommendations to sort them:
- Grids – More private finance. New approach to planning. A legal framework for cross-border grids incl. in the North Sea, with a new coordinator to drive investments. Beef up the EU’s Connecting Europe Facility;
- Permitting – Implement the new EU rules asap… Digitalise processes. Fund and train local authorities properly. And if decisions are blocked apply positive silence;
- Finance – Extend the use of 2-way CfDs and PPAs. Simplify EU funds: single point of entry and uniform application procedure. He wants capex and opex support. And dedicated growth equity instruments;
- Supply chains – Strengthen those where Europe’s already a global leader like wind. Do more to help energy-intensive industries decarbonise. Plug the skills gaps;
- Level playing field – Use all trade policy tools to secure critical supply chains and defend against state-sponsored competition from abroad;
- Innovation – Link R&I spending to industrial policy, with clean tech a top priority. More EU funds for manufacturing processes, such as automation and robotics for wind power equipment.
Big reports have often jolted minds and driven change in Europe – Lord Cockfield, Cecchini, Nick Stern. May this join them.
Source – Wind Europe