MEPs’ roadmap for supporting energy intensive industries

The EU must support the cost-effective decarbonisation of energy-intensive industries to stay competitive globally

Efforts should focus on electrification and net-zero technologies and addressing the energy price gap with EU competitors

Call for streamlined permitting, enhanced funding, and regulatory support

Measures to counter unfair global competition, secure the availability of critical and secondary raw materials, and support affected workers and regions

In a resolution adopted on Tuesday, MEPs call for strategic measures to bolster the competitiveness of energy-intensive industries and ensure a just transition to clean industrial processes.

In the resolution adopted on Tuesday in the Industry, Research and Energy committee, MEPs emphasize the crucial role of Energy Intensive Industries (EIIs) such as chemicals, steel, paper, cement, and glass in the EU's economy and decarbonisation efforts. These industries are vital for jobs and strategic autonomy but face challenges in transitioning to cleaner technologies due to high costs and process-related emissions, they say. The resolution stresses the need for a cost-effective transition using various technologies to reduce energy prices and avoid lock-in effects, with electrification as a key strategy.

The text identifies several obstacles to EU industry competitiveness, including energy price disparities with global competitors and volatile fossil fuel prices. An incomplete Energy Union, regulatory burdens, and complex funding mechanisms further hinder progress, especially for SMEs. The Emissions Trading System (ETS) also faces challenges due to market shifts and uneven revenue use across Member States, MEPs say.

Streamlining permitting and addressing unfair competition

To overcome these issues, they call for faster permitting of clean energy projects and implementation of the electricity market design legislation, especially to promote power-purchase agreements (PPAs) and two-way Contracts-for-Difference (CfDs), to lower energy costs. They advocate for better energy system integration, investments in grid infrastructure. Simplifying bureaucracy and securing the availability of critical and secondary raw materials are essential to attract private investments and support decarbonisation, they add.

Additionally, the resolution highlights the need to address unfair global competition through the effective implementation of the Carbon Border Adjustment Mechanism (CBAM) and to create lead markets for clean European products. It emphasizes a just transition that supports affected workers and regions, ensuring EU industries remain competitive globally while decarbonising.

Quote

"Today's high energy prices continue to seriously hinder the global competitiveness of European businesses and industrial production. Ensuring access to energy at competitive prices will be essential to preserving Europe’s industrial base, especially for those sectors exposed to international competition, while helping their decarbonisation. Aware of this issue, we have swiftly worked on an oral question with resolution to identify the challenges energy-intensive industries face today as well as related policy suggestions that I trust will receive full consideration from the Commission. We have pushed for the oral question to be presented and discussed at the earliest possible plenary session in Strasbourg because urgent action is needed and we need concrete answers on the future of our industry" said lead MEP Giorgio Gori (S&D, IT).

Next steps

The non-binding resolution was adopted with 53 votes to 21, with 8 abstentions. It will be put to a vote during a forthcoming plenary session. With 54 votes to 17, and 11 abstentions, MEPs also adopted a question for oral answer to the European commission to be debated in plenary during the same session.

Background

The resolution builds on previous reports and communications, including the Draghi Report, the Letta Report, and the Commission's Clean Industrial Deal and Action Plan for Affordable Energy, to provide a comprehensive roadmap for the decarbonisation of energy-intensive industries in the EU.