Clean Industrial Deal : MEPs stress the need to integrate industrial competitiveness with climate action

need for regulatory simplification and accelerated permitting procedures

building the business case for permanent carbon removals

MEPs welcome the creation of lead markets in Europe

need to protect the European market from unfair competition

importance of sector-specific approaches, tailor-made support and calling for a specific Action Plan on clean tech

Establishing the Industrial Decarbonisation Bank and the Action Plan for Affordable Energy are crucial for providing relief and structural reforms in energy pricing, MEPs said on Tuesday.

The resolution, adopted on Tuesday in response to the European Commission’s "Clean Industrial Deal" plan, stresses the necessity of integrating climate action with industrial competitiveness.

They urge the European Commission to swiftly go from strategy to action and implementation, and add that the proposed actions must be expanded with further measures.

The resolution underscores the importance of the newly established Industrial Decarbonisation Bank, which MEPs propose as vital for scaling up investments in clean technologies. They urge the adoption of investment criteria based on carbon impact, scalability, and security of supply.

MEPs welcome lead markets for European-made clean, circular and low-carbon products and stress the need to stimulate demand through public and private procurement.

They also advocate for the protection of the European market from unfair competition and the dumping of industrial overcapacity from third countries. They underline the importance of an effective Carbon Border Adjustment Mechanism (CBAM) in the context of phasing out the free allowances in the Emissions Trading System (ETS).

Faster permitting procedures

The resolution addresses the importance of regulatory simplification and streamlining permitting procedures to support the transition and innovation efforts of SMEs. MEPs propose further improvements and harmonization to streamline funding applications, reduce reporting obligations, and fast-track small projects.

MEPs call to address permitting bottlenecks for industrial access to energy and industrial decarbonisation, including through measures to accelerate judicial and administrative procedures and through assessing criteria for targeted exemptions for construction emissions and depositions for clean and net zero projects, storage and grid projects.

MEPs also want to build the business case for permanent carbon removals in upcoming legislative reviews, as carbon management, including capture, storage, transport, and utilisation, may be necessary for hard-to-abate sectors, they say.

Action Plan for Affordable Energy

In supporting the Action Plan for Affordable Energy, MEPs highlight the focus on implementing the Electricity Market Design and introducing tools such as Power Purchase Agreements (PPAs) and two-way Contracts for Difference (CfDs) to reduce the influence of fossil fuel prices on clean energy. They welcome the pilot programme for corporate PPAs via the European Investment Bank (EIB) and stress the need to leverage PPAs to expand capacity and achieve genuine decarbonisation. They also ask for introducing CfDs for risk reduction on the demand side for energy users.

The resolution also calls for boosting cross-border energy infrastructure and completing the Energy Union as the current fragmentation of regulatory oversight and investment planning across Member States is hampering integration and electrification. They call on Member States, transmission system operators and the Commission to ensure more cross-border electricity trading. They also note that significant expansion and modernisation of grids are necessary.

MEPs recognise that renewable energy, alongside nuclear energy for those Member States who decide to use it, is essential for a clean and secure energy mix. They call for strengthened cooperation on the development and production of Small Modular Reactors (SMRs) and to advance research in nuclear fusion.

They also call for the swift adoption of a simple, technology-neutral and investment-friendly definition of low-carbon hydrogen in the upcoming delegated act and urge the Commission to consider stakeholders' concerns and propose, where appropriate, changes to the delegated act on RFNBOs.

Quote

"European industry is facing enormous challenges, while a strong industrial base is essential for our competitiveness and strategic autonomy. The Clean Industrial Deal offers a strategy for a competitive, decarbonised and European industry. At the same time, it aims to protect our autonomy and secure jobs. This Deal is an important first step, but time is running out. Backed by a broad majority, this resolution urges the Commission to act without delay and raise its level of ambition. It signals that when it comes to industrial policy, European cooperation is more crucial than ever" said lead MEP Tom Berendsen (EPP, Netherlands).

Next steps

The non-binding resolution was adopted with 60 votes to 15, with 6 abstentions. It will be put to a vote by the full House during a forthcoming plenary session, which will also feature a debate with Council and the European Commission on the basis of an oral question also adopted on Tuesday.

Background: Clean Industrial Deal

Presented by the European Commission in February, the Clean Industrial Deal aims to support the competitiveness and resilience of European industry. The plan focuses mainly on two sectors: energy-intensive industries and clean tech. It aims to lower energy costs via an Action Plan on Affordable Energy. The Clean Industrial Deal also aims to boost demand for clean products, further finance the clean transition and improve circularity, access to critical raw materials and the establishment of sectoral skills for strategic industries.