Following the adoption by College of Commissioners of the new Clean Industrial Deal, President Ursula von der Leyen was in Antwerp to present the details of the plan to EU business leaders gathered at the European Industry Summit.
The President made the case for Europe's industrial potential, highlighting its current strengths: one quarter of global clean tech patents, top-quality infrastructure, vibrant sectors such as hydrogen and electrolysers, and all while greenhouse gas emissions in the energy sector continue to decrease.
President von der Leyen went on to lay out the details of the Clean Industrial Deal and other the accompanying initiatives adopted by the Commission on the same day.
First, she said, thanks to Deal there will be more investment on innovation: "Europe is a frontrunner for example in the global race for clean tech. Here in Europe, we have 30% of all innovative companies in electrolyser technologies worldwide; we have 20% for carbon capture and storage; and even 40% for wind and heat pump technology. But I know that too often, these companies struggle to grow, and to bring their solutions to industrial scale," she said.
Building on the success of the Innovation Fund, the Commission aims to mobilise up to €100 billion to establish a Decarbonisation Bank with a market-based system that rewards the most innovative and competitive companies. The President also said that the financing would come from the EU Emission Trading System in a direct reply to calls from businesses: "You said: This money that comes from the industry should be reinvested in the industry. That is exactly what we are doing now."
President von der Leyen also talked about the important role that circularity can play in growing the European economy and how the Clean Industrial Deal will promote it. She pointed out that 50% of the EU's steel, iron, zinc, and platinum come from scrap but much more could be used.
For example, she said that end-of-life batteries could provide 15% of the lithium needed in Europe, enough to produce two million batteries for electric vehicles.
That is why the Clean Industrial Deal announces that the Commission will put forward a Circular Economy Act. "We have to keep critical raw materials waste in Europe and give it new life. This is not only good for the planet, it also supports our open strategic autonomy," the President said.
Another pillar of the Commission's plan for industry is the ambitious simplification package adopted yesterday together with the Deal. The Commission has proposed to cut reporting obligations for most companies on corporate sustainability and mandatory taxonomy. Similarly, many SMEs will receive a simplify treatment in the application of due diligence rules and CBAM.
The President explained: "Around 80% of the companies will be excluded from the scope of the CSRD and the CSDDD. Around 90% of companies will be exempted from mandatory taxonomy. And our CBAM proposal will exempt 90% of importers. Together, these 90% of companies that we are exempting now from CBAM are responsible for less than 1% of import volumes and its associated emissions. So, the climate impact of this change is minimal. But the positive impact on SMEs is huge."
Yesterday the Commission also took action to reduce high energy prices, which remain structurally too high, burdening companies and households. The new Action Plan for Affordable Energy will accelerate the rollout of clean energy and electrification, complete interconnectors, bring transparency to the gas market, and overall complete the Energy Union.
Finally, President von der Leyen talked about the global dimension of the Clean Industrial Deal. European companies need to adapt to harsher global competition, and to help them, the EU is seizing new opportunities.
Since December, the Commission has concluded ambitious partnerships with Mercosur, Switzerland, Mexico, and it relaunched trade talks with Malaysia.
The Commission is also committed to its ongoing trade negotiations with India, and the President mentioned her upcoming visit to the world's largest democracy and the EU's determination to engage with the world: "Tonight, the College of Commissioners will travel to India to strengthen ties and expand trade with the world's largest democracy. We have many friends around the world that want to do business with us, and my function is to enable and ease this business for you with other regions of the world."
