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Dear colleagues,
On 16 March, the Commission unveiled the long-awaited Net Zero Industry Act and European Critical Raw Materials Act – part of its Green Deal Industrial Plan – marking a far-reaching shift towards intervention in the market. This would have been unthinkable just a few years ago. But today’s world is a very different place, as concerns over deindustrialisation play out in a more hostile geopolitical climate. A renewed strategic focus on strengthening the EU’s industrial base is a good thing, and there is much to welcome in the new measures. Yet a more comprehensive approach will be needed if Europe is to achieve net zero without sacrificing competitiveness.
There are three things we can do to get the balance right. First, while renewables are crucial, reducing energy demand is just as important. We cannot afford to squander the incredible potential of energy efficiency technologies to reduce emissions. This was at the core of the discussion we had with Philippe Delorme, CEO Europe Operations, Schneider Electric, earlier this month.
Second, we must do everything in our power to accelerate advanced manufacturing and unleash the efficiency and productivity gains it brings. This is at the heart of our work in the EU Industrial Forum, where we have been making the case for focusing not just on what we produce in the EU but how we produce it. Again, this is an area where European companies are breaking new ground. Look out for the Industrial Forum’s recommendations to be published very soon.
The third point is broader in scope but no less crucial: the EU must improve the overall business climate by tackling the cumulative regulatory burden of existing laws and introducing a comprehensive competitiveness check for all incoming legislation. The Data Act currently making its way through the legislative process is a case in point: its aim is to support the data-driven economy, yet in the latest position passed by the European Parliament, the Data Act would actually stand in the way of progress on data-driven manufacturing – by weakening the protection of trade secrets that are central to every company’s competitiveness.
Now is the time for an honest and pragmatic discussion on the way forward. We look forward to continuing the conversation with many of you at our upcoming networking evening On the Path to Net-Zero on 25 April.
Best regards,
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