Open letter: strengthening cleantech industrial processes through the Clean Industrial Deal

The EU Competitiveness Compass has made connecting decarbonisation and competitiveness a “strategic imperative” for Europe. This will be delivered by the all-important Clean Industrial Deal – the flagship policy package on which this new Commission hopes to upgrade Europe’s industrial base and tackle the climate crisis simultaneously.

We, alongside, 15 European think tanks, civil society organisations, and industry associations have sent an open letter to the Commission delivering a bold strategy to build strategic cleantech industries in Europe. The Clean Industrial Deal must incentivise industrial companies to integrate cleantech into their processes and shift to a decarbonised, circular, and innovative business model. This strategy should be backed up by commensurate investments and de-risking instruments, to transform the vision of the Competitiveness Compass into concrete action.

This letter calls for the EU to turn the Clean Industrial Deal into an effective Joint Decarbonisation and Competitiveness Roadmap that closes Europe’s innovation-to-market gap. Facing unclear demand signals and a fragmented European market, the business case for innovative and decarbonised products remains too weak and volatile. The letter offers clear guidance on how to strengthen this business case – with a focus on three pillars:

1. Access to clean, abundant, affordable and resilient domestic energy and its delivery infrastructure, which are essential for the growth of a sustainable industrial base.
2. A European Cleantech and Industrial Strategy that delivers sectoral decarbonisation and competitiveness, fostering a vibrant European market for clean technologies, their production and their value chains.
3. Unlocking private investment through a Cleantech Investment Plan with clear financial incentives and de-risking mechanisms to create robust, sizable markets that can drive the wide adoption of clean technologies in Europe and beyond.

Our 15 specific proposals, inter alia, provide a structure that will deliver fiscal headroom for member states to boost clean investments, improve the EU budget, crowd-in private investments, create robust lead markets for the uptake of clean products, and strengthen Europe’s leadership in next generation technologies.

“We welcome the Competitiveness Compass’s commitment to creating incentives for permanent carbon dioxide removal. Gradually integrating CDR into EU climate policy is essential for scaling up the sector and achieving climate neutrality. More immediate policy and financial support is needed, however, to drive demand for removals over the next five years. We propose a robust mix of instruments — including CDR targets, a public procurement programme, a Carbon Clearing House, alongside continued support towards RD&I and high-quality standards —  as essential for making Europe a competitive leader in CDR. The forthcoming Clean Industrial Deal is a key opportunity for the EU to commit to such bold and necessary action.” – Christoph Beuttler, CEO.