The EU changes its approach to energy transition and links it to competitiveness

manager24.pl 1 month ago

Transformation towards a climate-neutral economy can be an engine of economical growth. Thanks to talks conducted during the Polish Presidency, so as not to treat the energy transformation in isolation from the question of competitiveness, The European Commission presented the Competitiveness Compasse or Clean Industrial Deal initiative. Both papers propose concrete solutions to combine the 2 processes. It is crucial, which is peculiarly emphasized by business, to lower energy prices.

– I think it is possible to combine efforts to combat the climate crisis with ensuring our competitiveness. Europe does not have its own fossil fuels, so in the long word it is in our interest not to spend money on buying these fuels in 3rd countries, but to spend them internally in the Union. We are not discussing the change of intent that we have set for 2050, we are discussing how to scope that goal – emphasises in an interview with Newseria Ignacy Niemczycki, State Secretary at the Chancellery of the Prime Minister.

In line with the assessment of the national energy and climate plans carried out by the European Commission, the EU associate States have importantly addressed the gap in gathering the energy and climate targets and are presently on track to reduce net greenhouse gas emissions by around 54% by 2030 compared to 1990 levels if they full implement existing and planned EU national measures and policies. The EU's 2030 mark is besides to accomplish a renewable energy share of at least 42.5%.

As far as the pace of energy transition in the European Union is concerned, I believe that not only is the Union not doing besides little, but we are even going very quickly. While acting as Presidency within the Council of the European Union, Poland calls for attention to be paid to both the competitiveness and safety aspect. This means that erstwhile we carry out the transformation, we must be careful not to undermine the competitiveness of our economies and focus on implementing what we already have, that is, in the context of Poland, the principles and regulations that came to us from the European Union in the past years. – emphasises Krzysztof Bolesta, State Secretary at the Ministry of Climate and Environment.

According to the European Investment Bank data, 61% of companies in the EU invested in the fight against climate change in 2024, compared to 56% in 2023. all 4th company (27%) sees the transition to a low-carbon economy as an chance over the next 5 years.

Business support is besides crucial to the success of the energy transition.

– Business plays a key function in the energy transition, whether at national or broader, European or global level. On the 1 hand, companies supply products or technologies that enable and accelerate transformation. On the another hand, they add their own bricks to reduce energy consumption and greenhouse gas emissions, whether by improving the energy efficiency of production processes, thermomodernising their own buildings, gradually moving from fossil fuels to renewable energy sources, or by concluding appropriate contracts with suppliers for supply of services or natural materials, products with a reduced carbon footprint – explains Aleksandra Stępniak, public affairs manager in VELUX Poland.

Draghi's study points to the hazard of reducing Europe's competitiveness, including due to rising energy prices and negative impact on investment and production. Therefore, regulatory efforts are geared towards addressing this risk.

– The scale of the challenges for companies to undertake energy transformation depends on their activities, as the energy-intensive sector has completely different challenges than services. Production companies, which consume quite a few energy for production processes, request to find a suitable energy mix to reduce their own emissions while preserving production processes. The another companies have a much greater challenge in the transformation of the third, the full value chain – points out Aleksandra Stępniak, public affairs manager in VELUX Poland.

– I feel that the Polish Presidency is exerting force on another European institutions to actually draw attention to the competitiveness of the European economy. The Commission so proposed a Competitiveness Compasse, with the proposal of Clean Industrial Deal, a clean industrial order. I think present we request to focus first and foremost on the possibilities of lowering energy prices. It is absolutely crucial that the fight against the climate crisis be possible – judged by Ignacy Niemczycki.

The Competitiveness Compasse adopted in January this year provides a coherent framework for associate States to guarantee that all EU policies work together to increase Community competitiveness. It identifies key areas for change and proposes concrete initiatives to improve Europe's economical position. This is simply a consequence to increasing challenges, specified as slowing productivity growth. The compass besides foresees measures to reduce Europe's dependence on external suppliers of key natural materials and technologies. This is to be done by diversifying supply chains and reducing dependence on individual suppliers in key strategical sectors. A platform for joint purchases of critical natural materials is besides to be created.

Clean Industrial initiative Deal is to make the EU an attractive location for production, including for energy-intensive sectors (e.g. through affordable electricity or investments in the improvement of energy infrastructure). The Affordable Energy Action Plan is intended to reduce energy costs in Europe.

– I would besides like to draw attention to the announcement of strengthening the CBAM mechanism, which can level the playing field between producers in Europe and those outside Europe. It will consequence in a level playing field within the Union itself. I would besides point out that the European Commission, erstwhile again, thanks to the Polish Presidency, came up with a proposal to completely close imports of fossil fuels from Russia. I think this is absolutely crucial in our geopolitical situation. – convinces the Secretary of State at the Chancellery of the Prime Minister.

The REPowerEU Action Plan presented by the European Commission is intended to guarantee full EU energy independency from Russia. Despite sanctions imposed after the Russian invasion of Ukraine in 2024, the EU noted a reflection of gas imports from Russia. Hence the late presented road map of a complete departure from fossil fuels from Russia.

– As Europe, we must do everything we can to improve all aspects of security, to be absolutely energy-free. We inactive import quite a few energy. We as Poland no longer import nothing from Russia, but Europe inactive imports coal, gas, oil. Energy independency – transformation to green technologies and green energy produced in the European Union – is not only an economical matter, but above all a substance of improving safety – emphasises Krzysztof Bolesta.

The EU's energy transformation and initiatives to accelerate and combine this process with ensuring competitiveness were discussed by experts at the conference "EU economical Security", organised by the Association of Employers – Manufacturers of Materials for Construction together with partners, under the patronage of the Polish Presidency of the EU Council.

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