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Home Home - Projects
hydrogen

Europe’s Clean Industrial Deal Paves the Way for Sustainable Economy

Anela DoksoBy Anela Dokso26/02/20253 Mins Read
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In a concerted effort to pivot towards a more sustainable economy, Europe is poised to redefine its industrial landscape through the Clean Industrial Deal.

Central to this transition is the integration of sustainable practices across industries, fostering a resilient and economically viable future for Europe. The cost of energy remains a pivotal concern for European industries, particularly as average energy prices surpass those of many global trading partners. Enhancing the accessibility of affordable, renewable energy emerges as a cornerstone for industrial competitiveness. This challenge is compounded by Europe’s historical reliance on imported fossil fuels, a dependency that has exacerbated the volatility of energy prices. The Clean Industrial Deal seeks to mitigate these issues by accelerating the transition to electrification and integrating renewable energy sources, facilitated by strategic grid enhancements and innovation in energy management technologies. By 2030, Europe aims to increase its electrification rate to 32% and install 100 GW of renewable capacity annually.

At the heart of Europe’s industrial rejuvenation is the move towards a circular economy, with ambitions to become a global leader by 2030. The initiative to drive circularity focuses on maximizing resource efficiency, reducing waste, and minimizing reliance on non-renewable materials. By enhancing circular practices, Europe aims to significantly cut CO2 emissions and promote economic competitiveness. The economic potential of the circular economy is highlighted by projections that estimate the European remanufacturing market will grow from EUR 31 billion to EUR 100 billion by 2030, potentially creating half a million jobs.

Europe’s approach involves not only securing trade agreements but also establishing Clean Trade and Investment Partnerships (CTIPs). These partnerships aim to align industrial policy with strategic objectives, ensuring that European companies gain improved access to essential materials and clean technologies. By diversifying supply chains and fostering international cooperation, Europe aims to strengthen its role in pivotal global value chains and secure a competitive edge.

Industrial Infrastructure and Investment

The success of the Clean Industrial Deal hinges on substantial investments in infrastructure and innovation. Mobilizing over EUR 100 billion to support clean manufacturing, the initiative underscores the importance of leveraging both public and private finances to drive forward sustainable industrial practices. The establishment of the Industrial Decarbonisation Bank, with proposed funding of EUR 100 billion, exemplifies Europe’s commitment to fostering innovation and scaling up clean technologies.

To ensure a fair and equitable industrial transformation, the Deal places significant emphasis on workforce development. The Union of Skills initiative seeks to address the challenge of skill gaps within strategic industries, supported by investments in education and vocational training. This focus on building a skilled workforce is coupled with the goal of creating quality jobs, thus aligning social objectives with broader economic growth strategies.


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