Increasing tensions between geopolitical blocs, supply chain problems and the need to respond to the challenges of climate change, rising resource consumption and social imbalances are now key areas of activity in European industrial policy.
The EU is responding by developing or expanding industries that are essential for long-term competitiveness and the transition to an economic system that respects the planet's limits. These include the development or expansion of industrial capacities to produce photovoltaics, microelectronics, batteries, hydrogen, etc. Resource and energy-intensive industries are an important supplier of materials and products – such as green steel, aluminum or glass - to support the green transition in many other industries. Ultimately, this transformation of industry is done through a combination of increasing production capacities and technological development.