To align with the Paris Climate Agreement, the European Commission has recommended that the European Union reduce emissions by 55% by 2030 (relative to 1990 levels) and achieve climate neutrality by 2050. To achieve these goals, the EU and its member states must redouble their efforts to support the greening of the industrial sector, especially its energyintensive sub-branches, such as cement, steel and chemicals.
Industry accounts for approximately 20% of the EU’s net annual CO2 emissions. In the 2020s, a large portion of Europe’s industrial installations will be up for major reinvestment decisions. Since these are investments in very long-lived capital assets, the EU must make the most of the opportunity if it is to have a serious chance of achieving climate neutrality by 2050.
Capitalizing on the opportunity will require urgent action by member states and by the EU as a whole. As explained in this report, the EU will need to devise a comprehensive “clean industry package” to unlock transformative investments in the upstream, midstream and downstream segments of the industrial value chain while providing a level playing field for European industrials with respect to foreign competition.