The Vice-presidents’ take on the new EU legislative term
This week marked the final round of the College of Commissioners confirmation hearings. If confirmed, Teresa Ribera, the Executive Vice-President (EVP) for the Clean, Just and Competitive Transition, and Stéphane Séjourné, the EVP for Prosperity and Industrial Strategy, will play highly influential roles in Commission President von der Leyen’s new team.
The Clean Industrial Deal
Expectations are high for the upcoming Clean Industrial Deal, which is anticipated to be unveiled within the first 100 days of the new Commission’s mandate. A sense of urgency was evident during the discussions, with several references to the dire assessment of the current state and future perspectives of EU industries from the Draghi report.
However, few details have been released thus far on what tangible measures will make up the new Clean Industrial Deal. Yesterday’s hearings provided limited insights into the many initiatives anticipated as part of the deal, since Members of the European Parliament (MEPs) focused more on national politics rather than on the specifics of the next Commission’s flagship programme.
Recent debates have highlighted the complexity of balancing the EU’s key priorities – competitiveness, decarbonisation, and a just transition. Both EVP-candidates underscored the idea that these objectives can strengthen each other, and Teresa Ribera made a promising commitment to continue implementing the European Green Deal. However, information on potential new initiatives is still lacking.
The approach presented by Stéphane Séjourné could prove valuable in decarbonising hard-to-abate industries, by focusing on sector-specific challenges and the technologies required to decarbonise them. However, apart from steel, there is still a lack of clarity on which other sectors will be deemed “strategic” and included in this approach.
A technology-neutral approach
Achieving climate neutrality by 2050 and ensuring energy security across Europe will require the deployment of a diverse set of low- and zero-carbon technologies. CATF has consistently advocated for an approach based on flexibility and optionality, recognising that different regions and sectors may require varied solutions and will need to take into consideration the risks associated with decarbonisation pathways resting on a narrow set of solutions.
While technological neutrality was a key principle of the Commissioners’ mission letters, the commitment to making this a reality has yet to be substantiated by concrete actions. Repeating that the Member States independently decide on their energy mix does not provide a clear answer to the question of support for different technologies. Further action is needed to assess whether this commitment extends beyond rhetoric and will genuinely result in a balanced support for all technologies essential to the EU’s decarbonisation goals.
Funding challenges
To decarbonise its economy and revive its industry, the EU will need massive investments. The Executive Vice-President nominees offered limited clarity on the funding available to support the Clean Industrial Deal, which would regardless be dependent on the upcoming budgetary negotiations. They mentioned however several initiatives aimed at addressing the funding gap, notably the European Competitiveness Fund.
Apart from the Clean Energy Investment Strategy mentioned by Commissioner-designate for Energy Jørgensen, public procurement was highlighted as an important tool. Séjourné, for instance, said he would like to see governments move “from the lowest bidder to the best bidder”. As public procurement accounts for approximately 14% of the annual EU GDP, integrating quality, sustainability, and resilience as key criteria could contribute to the creation of a demand market for decarbonised products.
State aid was also discussed as an area needing revision to better support industries in Europe. However, any state aid reform would have to address the complicated question of EU cohesion, as not all Member States have equal resources available to support their industries.
A key focus during the hearings was also the establishment of new Important Projects of Common European Interest (IPCEI) in strategic sectors and technologies. This crucial task will be led by EVP Séjourné and supported by EVP Ribera, if confirmed. IPCEIs have a track record of accelerating industrial production and unlocking private investment, as demonstrated in sectors like microelectronics, batteries, and hydrogen. But the question remains, which other strategic sectors would be included in the expanded framework? CATF and 30 members of the industrial carbon management community have called for an IPCEI dedicated to industrial carbon management.
What’s next?
After evaluations by the relevant committees, the Conference of Presidents will conduct a final review and is expected to officially conclude the hearings on 21 November.
The complete College of Commissioners will then be up for final confirmation by the MEPs in the plenary session scheduled for 25 to 28 November.
The months following the hearings and the Commission’s confirmation will be pivotal for developing the proposed ideas and initiatives and for assessing their potential to meet the ambitious objectives set out.
