The European Commission, that just took office on December 1st, is currently working on the Clean Industrial Deal (CID). The Confederation of Swedish Enterprise is now publishing a number of key messages that we believe are important to consider. We call for ambitious and coherent policies to achieve the 2040 climate targets, emphasizing cost-efficiency, competitiveness, and the critical role of private investment in the transition to a decarbonized economy.
One of the central matters in the CID will be energy policy. Energy costs are a key component of business competitiveness, and the EU needs to take measures that can reduce these costs over time and create more resilient energy systems.
– Our emphasis is on ensuring a systemic approach to EU energy policy, which includes all prerequisites like power generation, grid infrastructure, and dispatchable capacity. It is vital to have a coherent strategy that encompasses all aspects of the energy system to achieve our climate goals efficiently, says Stefan Kvarfordt, Expert on energy and climate policy at the Confederation.
– We consider it crucial that forthcoming measures pave the way for investments and that these measures remain technology neutral. We particularly welcome the recommendation in Mario Draghi’s report to promote all clean energy sources, including safeguarding existing nuclear power in Europe, and we sincerely hope that the Commission incorporates this into the CID, says Kvarfordt.
The announced Industrial Decarbonisation Accelerator Act can play a vital role in facilitating decarbonisation within industry, particularly in energy-intensive sectors. We believe the primary focus should be on creating favourable conditions for the industry to maintain momentum in the transition. In this regard, faster permitting processes are essential.
– Permitting processes need to be accelerated and made more predictable for a wide range of industries, particularly for energy infrastructure, energy producing facilities and energy-intensive industry. If we aim to achieve significant improvements, a comprehensive approach to the issue is required, which should also include a review of EU-legislation that forms a part of the permitting process, for instance the water framework directive, says Lina Hagström, environmental lawyer at the Confederation.
It is crucial to drive development through markets and not create distorted competition.
One contentious issue revolves around financing. The EU Member States are already spending significant amounts of state aid on various initiatives, all with the common goal of supporting the green transition.
– It is crucial to drive development through markets and not create distorted competition through increased use of state aid. We must ensure that the market forces are allowed to operate freely, fostering innovation and efficiency. It is important to safeguard existing regulatory frameworks and design any new measures wisely to ensure they truly complement, rather than crowd out, private investments”, says Stefan Sagebro, Director for industrial policy, competition and state aid at the Confederation.
In addition to this, we can expect several other areas to be addressed within the CID, such as circular economy issues and clean trade and investment partnerships. Read our full three-page position paper, which serves as our starting point in contributing to the Commission’s upcoming initiatives that support the European business sector’s competitiveness and transition.
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