KEY MESSAGES
Europe finds itself at a crossroad: it must build up its energy sovereignty or face the prospect of a struggle in global competitiveness.
European leaders must find the right balance between the policy strategies that drive the development of EU manufacturing for net-zero technologies and those enabling access to diversified and resilient global supplies, in compliance with World Trade Organisation (WTO) principles, and EU environmental, social and governance (ESG) standards.
For the benefits of free-trade to be realised across the board, it is imperative for all players to respect the rules-based system that governs international trade. Otherwise, trade remedies could be implemented as a measure of last resort, where necessary, to protect domestic markets and industries against unfair and/or exploitative practices.
Policymakers must carefully consider the trade-offs of trade barriers while balancing the goals of protecting domestic industries.
Eurelectric recommends exploring parallel actions to deploy net-zero technologies cost-efficiently while building EU manufacturing capacities. These include:
- Regulatory certainty (i.e. implementing currently agreed legislation; strengthening and deepening the internal market)
- Access to diverse and resilient supplies of net-zero technologies (i.e. fostering synergies and enhancing diplomatic ties; promoting healthy competition and cooperation with like-minded non-European countries sharing the same environmental and social standards; developing local integrated supply chains)
- Efficient state administration (i.e. reducing bureaucracy and reinforcing staffing; improving approval processes and streamlining permitting procedures; promoting anticipatory investment frameworks; better planning in energy generation and infrastructure)
- Effective and better structured financing (i.e. harmonious integration of national and EU industrial policies preserving the level playing field within the internal market; simplifying European funding rules to ensure maximum accessibility)