The EU Industrial Strategy has failed to define a role for clean power in helping deliver climate-neutral industries, according to the German Renewable Energy Federation (BEE).
BEE president Simone Peter said a competitive economy, stable employment and the achievement of ambitious climate targets require Europe to invest more in future-oriented technologies and set out on the path to climate neutrality at an early stage.
“Europe must play a pioneering role in climate protection and the energy transition in order to modernise all economic sectors ecologically and to expand its technological leadership,” added Peter.
“The commission’s Industrial Strategy provides a rough road map for this, but one central signpost is missing, the role of renewable energy, which is the most efficient and cost-effective way to achieve a decarbonised economy,” she said.
A delayed energy transition would entail “enormous financial costs”, said the BEE.
Agora Energiewende has predicted steel production in 2030 would cost significantly more per tonne than today’s value at current carbon pricing levels.
“Today’s investments have had an impact for decades. That is why the decisions of the next five years will be decisive if we want to be fossil-free in 2050 while expanding value chains and innovation potential,” Peter added.
The BEE pointed out that, for example, using hydrogen in industrial processes is “only sensible and sustainable” if it is green through being produced by renewable electricity.
“Parallel to the hydrogen strategy, an ambitious and reliable expansion of renewables is needed, which, especially in Germany, should not be further hampered by brakes and caps,” the BEE stated.
The association also pointed out that the Industrial Strategy has so far also lacked concrete financing mechanisms for small and medium-sized enterprises (SMEs) and a revision of the guidelines for state aid for SMEs.
“So far, the energy transition has been so successful precisely because citizens have been actively involved and a decentralised energy supply has been made possible. This must be taken into account with the support of a growing number of decentralized and small companies,” she said.
Peter said it is up to Germany’s federal government to finally take a more active role in this regard and to create planning security by taking measures beyond the EU Industrial Strategy.
Peter added: “Renewable energy has considerable potential for jobs, the development of innovative technologies and new export opportunities for European manufacturers.
“Numerous industries connected with renewable energies along the value chain benefit. Not using this now in international competition would deprive us of a huge opportunity and the future viability of the continent,” added Peter.