European Shippers’ Council in Favour of the European Commission’s Green Growth Strategy
European Shippers’ Council (ESC) has expressed its support for the European Commission’s ambitious plan to link greening with economic growth and innovation. ESC views this development as a positive step for both environmental and economic progress. Several reports, including the one from Mario Draghi, have already highlighted the need for the EU to focus more on the competitiveness of European industries, and the Commission’s new initiatives align with these concerns.
Affordable Energy: A Key Priority in the Clean Industrial Deal
A central aspect of the Commission’s Clean Industrial Deal is its focus on ensuring affordable energy for businesses and households. The European Commission aims to reduce energy costs by €45 billion this year, with this target increasing to €130 billion by 2030 and €260 billion by 2040. These ambitious goals are outlined in the Affordable Energy Action Plan, which is central to the Commission’s strategy for reducing the financial burden of energy and making it more accessible for businesses and households alike.
ESC believes that affordable energy is essential to maintaining and growing the competitiveness of European industries. Reducing energy costs will have a direct positive impact on business operations, helping companies remain competitive in the global market.
Enhancing Resilience to Energy Crises
The European Commission has also recognized the need for the EU to become more resilient to future energy crises. As part of its strategy, the Commission proposes modernizing energy systems and connecting energy networks across Europe. One of the key goals is to accelerate investments in green energy and infrastructure, which are vital for reducing reliance on fossil fuels and improving energy security.
ESC supports these efforts, as the modernization of energy networks and the acceleration of green energy investments will help ensure a stable and affordable energy supply. Additionally, the Commission plans to speed up the approval process for green energy projects, enabling them to be tendered faster. This measure aims to reduce network costs and lower energy taxes—factors that currently inhibit investment in the green sector. While reducing energy taxes is a critical step, ESC acknowledges that this could affect tax revenues for member states, particularly given the variability in energy taxes across the EU.
Focus on Energy-Intensive Sectors
The European Commission has also outlined a proposal to release €100 billion to support cleantech companies. This initiative aims to assist industries, particularly energy-intensive sectors such as steel and aluminium, which are seen as strategic for the European economy. These industries are major contributors to CO2 and nitrogen emissions, and the need for rapid greening in these sectors is critical.
ESC strongly supports these efforts, recognizing that large energy consumers like the steel and aluminium industries must play a significant role in the green transition. The need to simplify the regulatory process for receiving state aid, particularly under the new Clean Industrial State Aid Framework, is also essential for fostering innovation and ensuring that these industries can meet sustainability goals without facing undue bureaucratic barriers.
Promoting Circularity and Sustainable Resource Use
In addition to greening energy-intensive sectors, the European Commission is focusing on circularity as a key strategy for reducing dependency on raw materials from third countries. The Commission has proposed the development of a Circular Economy Act to accelerate the reuse of materials and ensure that scarce raw materials are efficiently managed. The goal is to ensure that 24% of materials are reused by 2030.
ESC supports this focus on circularity, as it aligns with the broader goal of improving resource efficiency and reducing environmental impacts. By ensuring that materials are reused, Europe can decrease its reliance on external suppliers and create a more sustainable industrial model.
Strengthening International Cooperation and Trade
Finally, ESC acknowledges the European Commission’s recognition of the need for global partnerships to ensure the success of its green strategy. The development of new trade agreements and Clean Deal Trade and Investment Partnerships is crucial for promoting global sustainability. ESC particularly supports the extension of the Carbon Border Adjustment Mechanism (CBAM) to more product types, ensuring that European industries are not undercut by imports from countries with lower sustainability standards.
The CBAM will help protect European industries from unfair competition and provide an additional incentive for trading partners to adopt greener practices. By addressing international trade and supply chain resilience, the Commission’s plan further strengthens the EU’s ability to maintain its competitiveness on the global stage while pursuing sustainability goals.
Conclusion: A Strong Future for Green European Industry
European Shippers’ Council is fully supportive of the European Commission’s efforts to drive economic growth and innovation through greening. The Commission’s focus on affordable energy, resilience to energy crises, the support of energy-intensive sectors, circularity, and international collaboration creates a comprehensive strategy that will help ensure the long-term competitiveness of European industries. ESC is confident that these measures will provide the necessary framework for a greener, more sustainable, and economically prosperous future for Europe.