EU Parliament: Industrial competitiveness must be combined with climate action

The European Parliament , in a non-legislative resolution with 381 votes in favour, 173 against and 13 abstentions, stressed the need to combine climate action and industrial competitiveness .

In the text, adopted in response to the Commission's Clean Industry Pact, MEPs highlighted the importance of the newly created Industrial Decarbonisation Bank, which they said was vital to boosting investment in clean technologies. Investments should be based on carbon impact, scalability and security of supply, they said.

Parliament also highlighted the need to stimulate demand through public and private procurement and called for the EU market to be protected from unfair competition and dumping of industrial overcapacity from third countries. MEPs also stressed the importance of an effective Carbon Border Adjustment Mechanism (CBAM) in the context of the phasing out of free allowances in the Emissions Trading System (ETS).

The resolution addresses the importance of regulatory simplification and the need to streamline authorisation procedures to support the transition and innovation efforts of small businesses. MEPs want to simplify funding applications, reduce reporting requirements and speed up small projects.

It is therefore called for the creation of an economic justification for permanent carbon removals in upcoming legislative reviews, as carbon management, including capture, storage, transport and use, may be necessary for sectors that are difficult to decarbonise.

MEPs supported the action plan for affordable energy and demand-side measures to strengthen cross-border energy infrastructure and complete the energy union. They said that the current fragmentation of regulatory control and investment planning across member states has hindered integration and electrification. They called on member states, transmission system operators and the Commission to increase the promotion and competitiveness of cross-border electricity trading.

“European industry is facing enormous challenges, while a strong industrial base is essential for our competitiveness and strategic autonomy,” said keynote speaker Tom Berendsen . “The Clean Industry Pact offers a strategy for a competitive and decarbonised European industry. At the same time, it aims to protect our autonomy and secure jobs. This Pact is an important step, but time is running out. We urge the Commission to act without delay and increase its level of ambition. When it comes to industrial policy, European cooperation is more crucial than ever.”