"Made in Europe": EC President focuses on industry's role in twin transitions
Opening the third day of EU Industry Days 2022, EC President Ursula von der Leyen stressed the importance of the relationship between industry and legislature and urged for cooperation to deliver the European Green Deal and make the bloc stronger through innovation.
The focal point of the speech was a call for pride in the "Made in Europe" brand, as a symbol for products that are better for the environment and workers being paid a decent wage - a push for a "continent that has modernised its economy towards sustainability".
Read more: Vestager lays out blueprint for "free, fair and open" transition in speech
She reiterated her belief that industry will be an "indispensable ally" in the road to net-zero and in creating a better future for all.
The first item on the agenda was the EU Chips Act. We recently did a rundown of the Act, but von der Leyen presented fresh information about the primary goals and ambitions and the levels of investment required to, in her words, "make Europe a global leader" in semiconductor R&D.
She estimates that roughly €30 billion has already been invested into chip production in the EU, and the new wave of funding laid out under the act will be backed by Next Generation EU, the EU's recovery programme, Horizon Europe and national budgets.
She also stated that European companies in the semiconductor sphere are investing roughly €6 billion per year on average.
Von der Leyen laid out five main focal points for the Chips Act.
“We will invest in a field where we are already punching above our weight, such as focusing on transistors below 3 nanometres and in disruptive technologies for artificial intelligence", she revealed, talking about a big push into research and development for chips, which the Commission hopes Europe can become a global leader in.
"Thus, with research, Europe can go from strength to strength", she added.
The Commission believes that cutting-edge research must translate into industrial innovation under a scheme colloquially referred to as "from the lab to the fab" - the second main point. The third point stressed that production capacity must be scaled up significantly, which will require huge upfront costs, she warned.
These costs will require public support for private investment, and so the EU will be updating state-aid rules under strict conditions for the first time ever to spur private investment into infrastructure that could benefit "all of Europe".
However, not just chip giants will be targeted, the EU will also support smaller, innovative companies in accessing advanced skills and technology, cement partnerships and receive the necessary funding.
Lastly, the primary focus of the EU Chips Act is to make supply chains more resilient and create inter-dependencies and cooperation between trading partners.
The Commission President then shifted her focus to the green transition.
Read more: Europe is exceeding its renewable energy targets
"Europe is the most ambitious continent when it comes to climate goals", von der Leyen said.
"We are looking to become the first climate-neutral continent by 2050, and for that, we need to reduce CO2 emissions by 55% by 2030, and industry will be a closer partner in this transition".
She pointed out that EU-based entrepreneurs seized the opportunities to become more environmentally friendly before anyone else, and pointed to platforms such as the EU Industry Days event as ways to "continue the debate" and share ideas about how the goals of the European Green Deal can be met.
She also claims the EU supports the transition with "never-before-seen" levels of investment, backed by the €800 billion Next Generation EU programme that will aid in delivering a sustainable and digital future.
The scheme will also look to tackle structural challenges of the EU's economy, be it through electric vehicles, green hydrogen or a wave of renovation that will make homes and offices more climate-friendly and heating cheaper.
"450 million Europeans are demanding these changes, and it presents a golden opportunity for industry to profit", Von der Leyen said.
Von der Leyen's final point targeted the topic of strategic dependencies, which have become a heated topic at this year's event, by focusing on the surging energy prices across the continent since Autumn.
Europe current imports around 90% of its natural gas, and von der Leyen fired some shots at Russia, which accounts for 41% of all imported gas.
She pointed the finger at Gazprom, claiming its storage in Europe is nowhere near the level it should be and accused them of intentionally not increasing supply despite rising demand.
"Current geopolitical tensions come at a price... corporate interests and politics seem to be closely intertwined", she said.
Europe has "done its homework" since the Russian annexation of Crimea, she said. Europe has more than 20 large liquefied natural gas facilities at EU ports and gas infrastructures are deeply interconnected.
It appears the goal is to reduce overall dependence on Russian gas and engage with other partners such as the US, Norway, Azerbaijan and Qatar to diversify supply, which can shield against future crises.
The Commission has goals of becoming a major player on international gas markers and hopes to build up gas reserves, such as those seen with oil. These along with other measures will be shared and proposed to the Member States.
However, Von der Leyen suggests that implementing the European Green Deal remains the only real way to shield against future energy shocks as it is only the CO2-heavy energy sources - oil, gas, and coal - that are seeing price increases, while renewable prices continue to drop.
“Every kilowatt-hour that Europe generates from solar, wind, hydropower and biomass makes us more independent from Russian gas and other energy imports. This is why we have to accelerate the development and deployment of renewable everywhere in Europe", she revealed.
Read more: European gas storage dropped to 37.5% last month
Recommendations on how to speed up the approval process for new projects will soon be passed to the Member States.
“I know I can count on industry in this transition – on your innovative spirit. On your support for our European project and proven dedication to strengthening European players as some of the world’s most innovative companies”, she concluded.
Back to Homepage
Back to Politics & Economics
Back to Energy & Utilities