The future of EU energy-intensive industries (EIIs) in the face of high energy prices and transition costs

The European Union’s ambitious climate targets have significantly impacted resource and energy-intensive industries (REIIs), which are crucial to the EU economy. These industries face rising costs due to high energy prices, carbon pricing, and regulatory changes. The current situation underscores the necessity for tailored policy measures that address the unique challenges of each sector. There is an urgent need for a balanced approach to decarbonisation that maintains the competitiveness of these sectors, as recommended by the Draghi report.

The EU’s focus on green energy and circular economy models can create new markets and job opportunities, positioning the region as a leader in clean technologies. However, the pace of technological development and implementation must be closely monitored to avoid undermining EU industry competitiveness. Ensuring affordable energy and fostering innovation is crucial to maintaining the resilience and global standing of the EU’s industrial base.

This opinion reflects on the optimal solutions to maintain the competitiveness of EU industry in face of the rising energy prices and the costs required to support the transition towards a low-carbon economy.

The EU Youth Test at the EESC was applied to this opinion. The organisation Young European Leadership was chosen by a group of interested youth organisations to represent all of them during the opinion-making process.