Less than 80 days to go: the Clean Industrial Deal is shaping up

Competitiveness in on top of the EU’s agenda as factories close because of expensive energy and failure to compete with Chinese manufacturers. The European Commission wants to bring down energy costs and invest more in decarbonising industry. A Clean Industrial Deal plan is expected in late February, around the same time as the 2040 climate target proposal, with which it will need to be closely aligned. From the ongoing discussions it seems that the focus has turned from developing European champions in hydrogen, batteries, and other new cleantech industries, towards saving traditional industries such as steel, automotive and chemicals. With limited control over global energy costs the EU’s best shot might be to facilitate the access to R&D funding. The auctioning of emission allowances (EUAs) generated more than EUR 40 billion in 2023, all of which was reserved for climate action either via the member states or one of three special EU level funds. We might potentially see a new discussion on how this money best can be used to finance industrial decarbonisation.