EU’s New Clean Industry Deal Includes Push for Alternative Fuels
The European Commission presented its new Clean Industry Deal as the next ambitious step in a decarbonization strategy. The plan follows on from the FuelEU initiative that aims to reduce carbon emissions saying it will accelerate decarbonization while providing support to secure the future of European industry.
The Commission said it is launching the ambitious new program to make the regulatory environment more efficient. Its goal is to reduce bureaucratic hurdles. The plan focuses mainly on two sectors which they said are closely linked and critical to success for the decarbonization efforts. One focus is on energy-intensive industries which the Commission recognizes face high energy costs, unfair global competition, and complex regulations that are harming competitiveness. The other focus is on advancing clean tech.
“The demand for clean products has slowed down, and some investments have moved to other regions,” said Ursula von der Leyen, President of the European Commission. “We know that too many obstacles still stand in the way of our European companies from high energy prices to excessive regulatory burden. The Clean Industrial Deal is to cut the ties that still hold our companies back and make a clear business case for Europe.”
One of the key debates that shaped the FuelEI Maritime regulations and continue in Europe is the investment and availability of alternative, low-carbon fuels. Production lags and companies have remained slow to make costly investments. Experts have said the supply of the fuel and the competition among industries could be one of the key hurdles to reaching the goals to lower carbon emissions.
“Affordable energy is the foundation of competitiveness,” the Commission said in rolling out its plan. It adopted an Action Plan on Affordable Energy to lower energy bills for industry, businesses, and households. According to the Commission, the new act will speed up the roll-out of clean energy as well as accelerate electrification. It will support the efforts to complete physical interconnects across the internal energy markets while encouraging more efficient use of energy and cutting the dependence on fossil fuels.
The Clean Industrial Deal the European Commission estimates will mobilize over €100 billion to support EU-made clean manufacturing and adopt a new framework for simpler and quicker state aid measures for the roll-out of renewable energy, industrial decarbonization, and manufacturing capacity of clean tech. It is aiming for €100 billion in funding for its Innovation Fund and a proposed Industrial Decarbonization Bank. Amended regulations they also estimate will attract up to €50 billion in private-public investment.
The maritime sector immediately came out in strong support of the plan. The European Sea Ports Organisation (ESPO) welcomed the plan saying it would provide critical support to ports that are vital to the efforts. The ports of Rotterdam and Antwerp-Bruges issued statements in strong support and calling for the immediate implementation of the proposals.
The European Shipowners (ECSA) also announced support saying timing was critical. It welcomed the inclusion of shipping in the focus sectors while emphasizing the need to de-risk investments in fuels for shipping. Danish Shipping also applauded the plans highlighting the focus on increasing and lowering the cost of renewable energy. It said the European Commission is “focusing on exactly the right areas.”
The presentation said the Clean Industrial Deal is a critical framework and provides the basis for tailoring action plans for specific sectors. The Commission reports it will present an Action Plan for the automotive industry in March and an Action Plan on steel and metals in spring. Other tailored actions are also planned.