The Clean Industrial Deal:
Decarbonizing Europe’s energy-intensive industries?
As competitiveness takes centre stage of von der Leyen’s second mandate and is highlighted as a key priority for the Clean Industrial Deal, the question arises: how does environmental and social sustainability fit in? This roundtable explores how the Clean Industrial Deal could support decarbonization of hard-to-abate sectors such as steel, cement, and chemicals, and what policies should be put in place to achieve meaningful transformation of energy-intensive industries. At the same time, we discuss the role of circularity and how EU industrial policy can address broader societal and environmental challenges, including biodiversity loss, pollution, and social inequalities while ensuring the competitiveness of European industry.
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Key Themes:
- Current challenges in energy-intensive sectors: Participants highlighted economic pressures, such as rising energy prices and geopolitical factors, which exacerbate competitiveness issues for European energy-intensive industries (e.g., chemicals, steel, non-ferrous metals). The need for stable, affordable, and decarbonised energy sources is critical for these sectors.
- Role of electrification and renewable energy: There was consensus on the importance of electrification and renewable energy, particularly for baseload industries like aluminium and chemical production. However, challenges persist in aligning grid capacity, stable supply, and competitive pricing to meet high energy demands. Some panellists suggested subsidised electricity prices as a transitional measure.
- Sector-specific strategies and policy needs: Industry representatives stressed the need for tailored policy frameworks that address specific sector needs (e.g., access to biomass feedstock for chemicals, electricity for aluminium). Calls for differentiated roadmaps were made, aiming to balance competitiveness with climate goals.
- International competitiveness and policy learnings: With references to industrial policies in the US (IRA) and China, speakers debated the adaptability of similar approaches in Europe. The discussion included permitting challenges, regulatory harmonisation, and strategies for EU industries to compete globally despite higher operational costs.
- Innovation, demand creation, and circularity: Emphasis was placed on creating demand for sustainable products through procurement policies and advancing circular economy principles. Innovation and support for cleaner technologies were identified as central to the transition but require clear prioritisation and integrated policies.
- Governance and collaborative frameworks: The discussion closed on the need for robust governance to coordinate decarbonisation efforts across Member States, industries, and stakeholders. Developing a centralised framework could enhance the EU's industrial resilience while fostering more predictable policies and financing solutions.
Speakers
| Marzena Rogalska | Principal Adviser for Industrial Decarbonisation, DG CLIMA, European Commission | She currently serves as the Principal Advisor for Industrial Decarbonisation to the Director General in the Directorate General for Climate Action (DG CLIMA) at the European Commission. She joined the European Institutions in 2005 (the European Parliament first and as of 2010 the European Commission) and worked on policy development, including in the field of sustainable industrial policy, competitiveness, internal market, energy and development. In 2015-2016 she was an EU Research Fellow at the Weatherhead Center for International Affairs (WCFIA) at Harvard. Before joining the European Institutions, Ms.Rogalska worked for the regional and national administration in Poland, including the Chancellery of the Prime Minister. Prior to her public service, she worked on M&As in the private sector (manufacturing, telecoms and energy). Educated at Gdansk University and Diplomatic Academy in Vienna, she holds an MA degree in English Literature and postgraduate diploma in International Economic Relations respectively. |
| Lukas Hermwille | Co-Head of Research Unit Transformative Industrial Policy, Wuppertal Institute for Climate, Environment and Energy | He is Co-Head of the Transformative Industrial Policy Research Unit at the Wuppertal Institute for Climate, Environment and Energy. His research is focussed on international cooperation for and geopolitics of the transformation of the industrial sector towards sustainability, full decarbonization within a competitive world market context. Previously, he has been working in the field of global climate governance with a particular focus on the architecture of the UNFCCC climate regime. He has led major EU funded research projects including the CINTRAN research project focussing on the patterns and dynamics of structural change in carbon-intensive regions across Europe and NDC ASPECTS which is generating the scientific basis for updated national climate plans (NDCs) for subsequent commitment periods under the Paris Agreement (focus on heavy industry, transport, buildings and AFOLU). Lukas holds a PhD from at IVM Institute for Environmental Studies at Vrije Universiteit Amsterdam. In his dissertation “Guiding the Transformation” he integrated theoretical perspectives from transition studies and international governance theory. He has graduated with a diploma in Regional Sciences of Latin America with a special focus on energy and environmental economics. |
| Florie Gonsolin | Director of Industrial Transformation Projects, CEFIC | Florie Gonsolin, joined Cefic in January 2017 as a Climate Change and Energy Manager and successively, as Director of Industrial Transformation Projects. She coordinates Cefic’s participation into the EU Chemical Industry Transformation Pathway and manages ad-hoc projects on industrial transformation for the Cefic Board. Prior to joining Cefic, Florie worked for the transport fuels sector focusing on climate and energy policy. She also gained experience in the European Parliament, working for two MEPs. Florie is graduated International politics, law and economics (specialised in European politics) as well as business administration. |
| Adina Georgescu | Energy & Climate Change Director, Eurometaux | Adina joined Eurometaux in July 2022 and leads the Energy and Climate Change department. A lawyer by education, Adina has 15+ experience in policies related to the energy market, climate change and environment, security of energy supply. Previously, she worked in the European Commission and in the Romanian Ministry of Economy, at the aluminium company Alro and as advisor of the Romanian Prime Minister. |
| Johanna Lehne | Associate Director in Clean Economy, Programme Lead on industrial decarbonisation and trade policy, E3G | Johanna works with NGO partners, industrial stakeholders and policymakers on issues relating to decarbonising energy- and resource-intensive sectors. Her expertise includes industrial policy, circular economy, built environment and trade policy. Before joining E3G in August 2019, Johanna was a research associate in the Energy, Environment and Resources Department at Chatham House. Her research, while at Chatham House, covered industrial decarbonisation, the circular economy, low-carbon innovation in the built environment, chokepoints in global food trade, natural resource governance in China and energy for displaced populations. She holds an MPhil in International Relations from the University of Oxford, where her thesis focused on the role of oil abundance and water scarcity in interstate conflicts in the Middle East. Johanna also has a BA in European Social and Political Studies, with a specialisation in economics, from University College London. |
Moderator
| Tomas Wyns | Researcher at the Centre for Environment, Economy and Energy at the Brussels School of Governance of the Vrije Universiteit Brussel (VUB) | Tomas Wyns is a researcher at the Centre for Environment, Economy and Energy at the Brussels School of Governance at the Vrije Universiteit Brussel (VUB). Before joining the Brussels School of Governance, Tomas worked for five years as a climate policy officer in the environmental administration of the Flemish government in Belgium, responsible for implementing the European Emissions Trading System and industrial energy efficiency policies. He later joined the European Climate Action Network where he coordinated the European NGO’s activities on Europe’s 2020 climate and energy package, including the implementation of the reviewed EU Emissions Trading System. Tomas also directed the Center for Clean Air Policy’s European office for two years, where he developed innovative solutions for industrial policy embedded in EU climate and energy action. Tomas is currently working on European and international climate policy, particularly the design of the EU Emissions Trading System, post-2020 industrial and innovation policy, and enhancing global climate action under. |
The roundtable debate series "Key Issues in EU Climate and Sustainability Governance" delves into pressing issues surrounding climate and sustainability governance in the context of the European Green Deal. Each debate offers a platform for exchanging unique perspectives, featuring a diverse panel of experts and stakeholders, including policymakers, researchers, civil society and industry representatives.