How to make the EU’s Industrial Deal Clean, Green and Fair?

Today, the European Commission unveiled its Clean Industrial Deal, a new initiative that aims to align decarbonization with industrial growth and competitiveness, ensuring Europe remains a global leader in clean technologies while reducing dependency on external resources. By simplifying regulations, increasing investment and securing access to affordable sustainable energy, the Commission seeks to boost clean industry in Europe. 

However, in this pursuit of industrial competitiveness, where do climate, nature and people fit in?

A significant moment for Europe’s industrial future

This ambitious plan is part of the new Commission’s agenda to bolster European industry’s competitiveness, as outlined in the recently published “EU Competitiveness Compass”. 

The EU faces a balancing act: boosting its industrial competitiveness while staying on course to meet its climate and biodiversity targets. European industries have raised challenges in competing globally, citing high energy prices and geopolitical uncertainty. The Clean Industrial Deal is designed as a response to these concerns, but its success will depend on ensuring that new measures do not come at the expense of the environment and communities. 

The deal published today focuses on six main areas for EU policy action: affordable energy, lead markets, financing, circularity and access to materials, global markets and international partnerships and skills. While the deal aims to bring together climate and competitiveness under one overarching growth strategy—and there is welcome support for a 90% EU emissions reduction target for 2040—details on how it will interact with and reinforce other policy priorities, including climate, environment and biodiversity—and abiding by the European Pillar of Social Rights—remain scarce.

Sustainability as a competitive advantage

Sustainability goals should be considered a competitive advantage for Europe and European businesses. Ensuring harmony with climate, nature and communities is crucial for the success of the energy transition. Policies should focus on smart, win-win options that are beneficial for all, delivering on the UN Sustainable Development Goals. 

Several smart policies can incentivize European leaders to go the extra mile regarding sustainability, biodiversity and a just transition. For example, non-price criteria in renewable energy auctions could reward projects that restore nature and fairly benefit communities alongside energy infrastructure, or preference could be given to projects that take an integrated approach to nature. 

Furthermore, putting people at the heart of the energy transition is equally important to ensure historically under-resourced communities benefit more fairly while gaining public acceptance—as it is often one of the biggest barriers to the timely approval and build-out of new renewable energy projects. Further guidance on strengthening community engagement and showcasing best practices to empower communities could help achieve a just and fair transition, increase acceptance and break down opposition and barriers to development.

Opportunity for Europe’s global leadership

We know this is possible: industry leaders have already demonstrated the viability of nature-positive approaches. Initiatives like Power Plant, led by the European power sector to guide the integration of renewable energy projects and nature, or the development by the solar industry of nature-inclusive solar parks, showcase this potential. 

Developments on brownfields, degraded lands and industrial areas have the potential to minimize impacts on pristine natural areas, offer prospects for economic regeneration in de-industrialized areas, garner community support and avoid conflicts in areas with higher biodiversity value. They also provide potential for nature restoration that helps meet the biodiversity and climate goals of EU Member States. 

The EU now faces a choice—continue business as usual or turn to a smarter course where competitiveness and sustainability reinforce each other. A clear, ambitious renewable energy target for 2040 would pave the way for more investments in the sector, provide the certainty needed for long-term investment and strengthen the EU’s leadership in the clean transition and climate globally. 

Looking ahead, the EU should ensure that its new priorities align and deliver for climate, nature and people. As discussions on the Clean Industrial Deal unfold, we must push for policies that recognise sustainability and fairness as a competitive advantage, not as a burden but as an opportunity to move forward while leaving no one behind.