Under the label of the Clean Industry Pact, the European Commission (EC) argued that it is necessary to turn decarbonization into a driver of industrial growth in the bloc.
In this way, the project prioritizes energy-intensive industries, such as steel, metallurgy and chemicals; and the clean technology sector, which “is at the center of future competitiveness and is necessary for industrial transformation, circularity and decarbonization,” the text states.
Another key element of the Pact is circularity, whose objective is to reduce waste and prolong the useful life of materials, by promoting recycling, reuse and sustainable production.
It also aims to help “maximize the EU’s limited resources” and reduce excessive dependence on external suppliers of raw materials.
The EC proposal also includes cutting by 80 percent the number of companies required to submit reports on their impact on sustainability and lowering minimum fines for failure to comply with mitigation measures against climate problems.
It also expressed its support for reducing the scope of the carbon border adjustment mechanism, that is, the application of the tariff through which the community club taxes imports from third countries produced with high carbon emissions.
According to the initiative, the EU could reduce administrative burdens for companies by 25 percent in five years, although the European Commissioner for the Economy, Valdis Dombrovskis, reiterated that it is not a process of deregulation, only of simplifying administrative burdens.
In this regard, it promises to soften the directive on corporate sustainability, due diligence approved just a few months ago, which requires companies to identify and mitigate their impact on environmental or social sustainability, including human rights, as well as the impact of the firms in their supply chain.
“The Clean Industry Pact is Europe’s business plan to tackle the climate crisis, boost competitiveness, ensure economic resilience and retain talent,” said EC Vice President Teresa Ribera at the presentation of the document.
According to the organization, the EU will need an additional 480 billion euros each year to achieve the transition to a zero-emission economy; hence the request for greater public aid and tax incentives and cuts in procedures.
Simplified and flexible rules will allow the rapid approval of State aid for decarbonization and clean technology projects, the EC document alleges.
ef/jha/mjm
