Europe’s economy faces mounting pressure in an increasingly turbulent world order. Against this backdrop, Wednesday’s Clean Industrial Deal marks an important shift in the EU’s approach to supporting industrial competitiveness and addressing intensifying geostrategic competition over raw materials. This is a much-needed step.
Anyone who has spent years going down the rabbit holes of Green Deal legislation – from the ‘additionality principle’ for clean hydrogen to the EU taxonomy – knows how difficult it is for businesses to translate complex EU rules into real projects.
The ‘omnibus’ review of reporting obligations, especially the relief it provides for small and medium-sized enterprises, is therefore a welcome move. It signals that the EU can cut red tape when urgency demands it. At the same time, the EU Commission rightly maintains Europe’s commitment to long-term decarbonisation. A stable regulatory framework and predictability remain Europe’s strengths – a comparative advantage for securing the investment the Deal’s architects hope to attract from the private sector.
The Clean Industrial Deal lacks the assertive, coordinated action one would have hoped for,however. One year after the Antwerp Declaration, steel and chemical industry leaders are sounding the alarm: unfair competition from the US and China, higher energy costs, and weak demand are shutting down European factories. Instead of targeted interventions, the Commission package introduces a dizzying array of new measures and buzzwords. Wasn’t simplification the goal?
The success of the Clean Industrial Deal will depend on the Council stepping up – with member states making tough but necessary joint decisions to prioritise strategic sectors that could drive industrial strength across Europe.
The Affordable Energy Action Plan already faces criticism for failing to provide short-term relief from structurally high energy prices. But, as CERRE argued in October 2024, energy price shocks like 2022 can be pre-empted.
By now, it is clear: the world will not follow all of Europe’s climate policies in the short term, and economic conditions are hardening. This makes investing in clean manufacturing and energy production not just an opportunity but a necessity, building a lasting competitive edge. The challenge is not just ambition, but execution. Mario Draghi emphasized the necessity for Europe to make truly strategic decisions to enhance its competitiveness, even if that involves difficult trade-offs. Let’s discuss.
Annika Brack is the Director for the Energy, Mobility and Sustainability (EMS) practice at the Centre on Regulation in Europe (CERRE). Previously, she served as representative for Uniper SE in Brussels and led the political affairs unit at 50Hertz Transmission in Berlin. Her experience also includes senior roles at an emerging technology think tank and the World Economic Forum. Annika is a UNAOC and WEF Global Leadership Fellow, with a background in international studies in Paris, Washington D.C., and Berlin.
Annika Brack is the Director for the Energy, Mobility and Sustainability (EMS) practice at the Centre on Regulation in Europe (CERRE). Previously, she served as representative for Uniper SE in Brussels and led the political affairs unit at 50Hertz Transmission in Berlin. Her experience also includes senior roles at an emerging technology think tank and the World Economic Forum. Annika is a UNAOC and WEF Global Leadership Fellow, with a background in international studies in Paris, Washington D.C., and Berlin.
