EP insists on linking Clean Industry Pact to climate

Apostol Apostolov, 3eNews Benelux correspondent

The European Parliament is once again drawing attention to an obvious fact for more than a year – European industry is in crisis. The serious bell that something needs to change quickly is ringing in the latest resolution from the June session of MEPs. The document recommends synchronizing the policies of the Bank for Industrial Decarbonization, those in the field of climate and for the development of European competitiveness as an opportunity to get out of the crisis.

For the European Parliament, an Industrial Decarbonization Bank is “vital for increasing investments in clean technologies”.

Attention is also drawn to another fact on which the EC has already prepared decisions - unfair competition and dumping of industrial overcapacity from third countries.

The resolution discusses the importance of regulatory simplification and the need to streamline permit granting procedures to support the efforts of small businesses for transition and innovation.

MEPs also call on Member States, transmission system operators and the Commission to make more efforts to promote cross-border trade in electricity.

"European industry faces enormous challenges, and a strong industrial base is essential for our competitiveness and strategic autonomy," Dutch MEP Tom Berendsen said in a statement from the floor. His comment is not accidental and reflects the experience of his country, which has long struggled with an ossified bureaucracy, a lack of modernized network, lagging European projects of business on the path to climate neutrality.

 

And if there is a country in the EU in which all the problems of the European energy-intensive industry stand out most clearly, it is the Netherlands. In separate analyses or short reports, I have repeatedly drawn attention in my correspondence to these problems, which, like a school plan-synopsis, were outlined in the latest resolution of the European Parliament. The plan has been created, the synopsis has been named. All that remains is for the European Commission to get down to business as soon as possible and quickly do its homework. Because it is of critical importance for the well-being of European industry.

There are two key pillars on which the attention of energy-intensive business in Europe is focused - the Clean Industry Pact and the promised 100 billion euros to help energy-intensive enterprises to green. The other way out of the crisis and a chance for startups is to simplify procedures, reduce paperwork and shorten assessment deadlines. According to the latter It recently became clear that Dutch energy companies sometimes need between 5 and 7 years to obtain hundreds of opinions before the necessary expansion and modernization of the high-voltage grid in cities can begin.

By the time this happens, it may already be too late not only for individual companies, but for entire economies. This negative development is clearly visible in the lowlands. It is not by chance that I said that this country could turn out to be a projection of the larger crisis.

After complaining in a series of letters without any concrete result about inaction and state chaos in legislation, heavy industry, transport, logistics and port authorities - it seems that many of the leading companies have decided to simply move their business to the USA or third countries. And the managers' request is reduced to the preparation of a special law, which clearly regulates that there will be faster procedures, easier conditions for investors and the creation of a special place for innovations similar to the port of Antwerp. "Action is needed, and fast. Without a swift and decisive government policy, the Netherlands risks losing its leading position in the world's port economy forever," they say in a desperate letter to the now-resigned government of Dick Schoff. However, their demands will remain unheard at least until the autumn of this year, if a new, more vocal cabinet is elected.

Among the big candidates for departure is Shell, which has announced that it is starting a comprehensive review of its chemical divisions around the world. This means that in the next few years it may lead to partial or complete closures of branches. Another American chemical giant, LyondellBasell, announced that the Rotterdam factory will close. Another American colleague in the sector, Westlake, also announced that it was closing all its factories in the industrial zone of the port due to the continuing deterioration of the business climate in Europe. Such indications were also given by the company Tronox.

And another fragment, covered in the resolution - unfair competition. If urgent measures are not taken against low-quality and low-priced Chinese production, a number of leading companies, led by Aselor Mittal, have threatened to find a new headquarters for the factories.

The mood is no different in neighboring Belgium, where the Belgian heavy industry is also "singing" in the same song. Support for the demands for faster measures is also being invited from the chemical sector. The message is clearly stated: Politicians, stop talking, it's time for action"!

Regarding climate, it seems that the EC has taken a good stock of its progress, but not enough. This was recently stated jointly by three European Commissioners Teresa Ribera (competitiveness), Wopke Hoekstra (climate issues), and Dan Jørgensen (energy and housing). In total, climate disasters for the period 2021-2023 cost the European budget 163 billion euros. In order to prevent this amount from swelling further in the coming years, investments in the climate field are needed.

Instead of a long conclusion - I will just say. Every time some of the powerful in Europe - Von der Leyen, Ribera, Jørgensen, Hoekstra, or anyone else, stands in front of the media and raises the topic of climate, energy, targets and competition - that legendary smiling man from the even more legendary "Minute is "a lot" and with a sharp class he said "No time!”.