The global race for industrial leadership is accelerating – and Europe risks falling behind. The European Commission’s Clean Industrial Deal is a step in the right direction, but we must refine its approach if it is to succeed in the new world.
The CID aims to restore Europe’s industrial base while advancing the green transition. This isn’t just about emissions: It’s about survival in a fiercely competitive and unpredictable world.
Our industrial strength is a prerequisite for Europe’s resilience, security and sovereignty. We cannot afford to rely on others for our energy, raw materials or defence capabilities. Industries that cannot be sustained at home cannot defend the home.
The CID recognises this reality. It rightly focuses on energy-intensive sectors, clean technologies and strategic value chains. I welcome the plans to lower electricity costs through grid expansion and power purchase agreements (PPAs), speed up permitting, and create a more favourable environment for private investment, especially through the European Investment Bank and InvestEU.
This article is part of The Parliament's latest policy report, "Delivering Europe's Clean Industrial Deal."
Certain aspects of the legislation warrant reconsideration, however. The EPP emphasises the need for a technology-neutral approach, allowing Member States to choose their clean energy mix to achieve climate targets. This will ensure that innovation is not stifled and that the most effective technologies can be utilised across different regions.
Moreover, I advocate for the simplification of regulations to enhance EU competitiveness. By cutting red tape and avoiding excessive bureaucracy, the EU can create a more favourable environment for businesses to thrive and innovate.
The CID will mobilise over €100 billion to support clean manufacturing within the EU. It is essential that these funds reach the right, market-based projects quickly and efficiently; and we must reduce red tape and open the door for more companies to benefit from this success story.
As the European Parliament's rapporteur in the Budget Committee for the Omnibus II regulation, which focuses on the loan guarantee program InvestEU – a key pillar of the CID – my priority is to ensure that this highly successful programme receives more funding and is made more accessible to businesses.
I also support the CID’s strong emphasis on circularity. The upcoming Circular Economy Act and the goal to make 24% of materials circular by 2030 are essential for breaking free from global dependencies and creating high-quality jobs. Finland, with its clean energy and world-leading circular innovations, is ready to lead this transformation.
However, we must be honest about the financial risks. The proposed funding model relies heavily on revenues from the EU Emissions Trading System and the Carbon Border Adjustment Mechanism. While they should serve as a source of funding for long-term industrial renewal, we must seek ways to increase funding stability. We need sustainable and predictable investment models.
Most importantly, we must avoid the trap of large-scale public subsidies. This path risks distorting the single market, undermining competition and rewarding inefficiency. Instead, let’s focus on enabling conditions: smart state-aid rules, regulatory certainty, and the internal energy market. A seamless, competitive internal market is Europe’s greatest asset.
The CID includes promising ideas like a European Critical Raw Materials Centre and a “Made in Europe” procurement framework. These tools can strengthen strategic autonomy, so long as they are implemented swiftly and with clear, measurable goals.
Finally, the proposed regulation rightly highlights skills. Without a trained workforce in strategic industries, even the best industrial strategy will fall short. The proposed Union of Skills must properly address the needs of our businesses and workers.
The Clean Industrial Deal can be a turning point for Europe’s industrial future, but it cannot succeed through good intentions alone. We must act decisively to ensure it strengthens our single market, supports private innovation over public dependency, and delivers tangible results for citizens and companies alike.
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