The von der Leyen II Commission took office on 1 December. The Clean Industrial Deal, promised by President von der Leyen for the first 100 days, is an opportunity to set out how the EU can support its industry, maintain its position in the net-zero industrial race and provide a united response to geopolitical turbulence. The European economy is under high pressure: Beijing’s strategy to become the global cleantech monopoly is putting Europe’s industrial base at risk. This pressure will increase as Chinese products will be re-routed to the European market if the Trump administration imposes a 60% tariff. In addition, the EU’s high dependence on imported gas, oil and coal maintains businesses and households vulnerable to international energy markets’ volatility and undermines its energy security. In fact, as a result, gas prices in the EU are three to five times higher than those in the US. As its dependence on US Liquified Natural Gas (LNG) increases, the EU exposes itself to US policy decisions on trade. In the first half of 2024, 47% of the EU’s LNG imports were from the US, 18.7% from Russia.
In its first 100 days, the new Commission can shape Europe’s response to those challenges through a new Competitiveness Compass, outlined by the President von der Leyen. Stéphane Séjourné, in collaboration with Teresa Ribera, is responsible for designing a robust Clean Industrial Deal that backs a 90% climate target by 2040.
The business case for net-zero manufacturing in Europe is decreasing quickly due to high energy prices and the slowdown of demand for EVs and heat pumps for instance. Providing reassurances that the EU continues its net-zero transition and will support strategic industries such as battery, wind turbine, steel manufacturers and automotive is key. During the 100 first days, the new Commission can launch some key initiative that can favor Europe-made technologies and consolidate the value chains to face the competitiveness crisis as central parts of the Clean Industrial Deal:
The new Energy and Housing Commissioner, Dan Jørgensen, has outlined a comprehensive approach to securing clean, affordable energy, as part of his priorities. Key initiatives include an Electrification Plan and a roadmap towards ending Russian energy imports within the first 100 days, to make energy more accessible and cost-effective:
With President Trump back in power, it is time for the EU to take no-regret actions on geoeconomics as well as energy relations and enhance its position as a multilateral player. The Clean Trade and Investment Partnerships are key for the EU to accelerate the global energy transition, secure supplies, catalyse financial flows and create a mutually beneficial partnership model for the EU and its partners as analysed in our report. Ursula von der Leyen announced the Global Energy Transition Forum and co-launched the Campaign on Renewable Energy for Africa with the South African President Ramaphosa at the Brazilian G20, which are good building blocks to strengthen cooperation with Africa. A new finance goal has been agreed at COP29 in Baku that covers mobilising$300 billion and reaching $1.3 trillion of investments by 2035. The EU can make these pledges credible by:
