The Clean Industrial Deal: the EU recommits to energy independence

The programme, which President of the European Commission Ursula von der Leyen promised to launch during the first 100 days of her new mandate, has become a reality. The Clean Industrial Deal aims to boost the competitiveness and resilience of European industry, two factors which are more essential than ever in the new context of international commercial competition, following recent moves in relation to tariffs.

In addition to ensuring the resilience of industry, the Deal includes important measures to decarbonise the industrial sector and launch what is being described as a re-industrialisation of Europe, combining industrial production with the use of green energy, the protection of the environment and the electrification of consumption.

Europe has embarked upon an ambitious road map to become a decarbonised economy by 2050, seeking to stay the course already plotted out towards the intermediate goal of reducing net greenhouse gas emissions 90% by 2040. This institutional framework can drive competitiveness, by offering certainty and predictability to businesses and investors. The strategy is to promote competitive producers to guide decarbonisation through innovation, creating high-quality jobs while fully respecting the principle of technological neutrality required of the Union’s member states.

Under the terms of the Clean Industrial Deal, over 100 billion euros will be mobilised in the short term to support EU-made clean manufacturing. This amount includes an additional 1 billion euro in guarantees as part of the current multi-annual financial framework, according to the text.

Two key sectors for the energy transition will especially benefit from the funds: energy-intensive industries and clean technologies. Circularity will be a priority and is the key to maximising the EU's limited resources, in order to reduce dependence on foreign energy sources and improve resilience. Cutting waste production, lowering production costs and reducing CO₂ emissions will help create a more sustainable industrial model to the benefit of the environment and the block's economic competitiveness. The goal of the Clean Industrial Deal is to make the EU the world leader in the circular economy by 2030.

According to EU Commissioner for Climate Woplke Hoekstra, who presented the Pact together with President of the Commission von der Leyen, «the initiative represents a turning point for the European economy». The aim of the Plan, also confirmed by the Minister of Enterprises and Made in Italy, Adolfo Urso, «is to reduce industrial emissions by up to 30%». Funds will be given to virtuous companies in the form of financing, e.g. by strengthening the existing Innovation Fund or by proposing the creation of an industrial decarbonisation bank.

The final objective will be to ensure that industries adhering to the deal can access energy at affordable prices, while simultaneously facilitating the transition towards a low-carbon-emission economy. To achieve this, the Clean Industrial Deal intends to accelerate the spread of clean energy and electrification; to complete the definition and legislation of the internal energy market, for example with increases in physical interconnections; and to use energy more efficiently and reduce dependence on fossil fuels.

Access to energy at affordable prices is a cornerstone of the Clean Industrial Deal. In fact, Europe’s dependence on imported fossil fuels is one of the main causes of volatile energy prices. In the current uncertain geopolitical and economic scenario, digitalisation, including the use of artificial intelligence to guide smart grids and energy monitoring based on the IoT, will be essential in ensuring the greater integration of energy systems and even more efficient real-time grid management, by also permitting predictive maintenance activities on critical infrastructure.

To successfully reach these strategic goals, the TSOs play a vital role in paving the way for the energy transition through increasingly innovative and efficient electricity transmission grids. «The integration of renewable sources and the electrification of the EU’s energy system will require a regulatory framework that supports fair and affordable electricity bills, provides adequate European financing, and at the same time allows the large-scale private investments needed to strengthen and expand the transmission grids and interconnections», wrote the Chief Executive Officer and General Manager of Terna, Giuseppina Di Foggia, reacting to the EU announcement on her LinkedIn profile. «Working together, we can ensure that Europe’s electricity infrastructure is ready to rise to the challenges of the energy transition». In updating its 2024-2028 Industrial Plan, Terna confirmed its dedication to and investments in grid development, totalling 17.7 billion euros, in a significant intensification of its commitment to serving the national decarbonisation effort and reducing Italy’s dependence on foreign supply sources.