A forum for inquiry, collaboration and scrutiny: on the occasion of Bellona Europa’s 30th anniversary in Brussels, the first Bellona Climate Action Conference on October 1st brought together a diverse group of participants from EU institutions, national governments, industries, think tanks, academia and civil society organisations. Moving beyond isolated approaches, a solution-oriented agenda aimed to discuss the multifaceted challenge of full industrial decarbonisation. 

The discussions focused on transforming energy systems, creating lead markets for low-carbon products, deploying CO₂ infrastructure, and ensuring effective carbon pricing – offering a comprehensive, 360-degree view of the challenge and presenting solutions to accelerate the decarbonisation of European industries. 

With the devastating effects of climate change being increasingly felt across Europe, in his keynote speech, Director-General of DG CLIMA, Kurt Vandenberghe, stressed that the climate agenda is also an existential agenda. Measures for maintaining industrial competitiveness and protecting the climate must be addressed not separately, but in conjunction to address ecological, economic, and security challenges. While from China to Ethiopia, governments are advancing their climate transition, the EU will remain firmly at the forefront of the green transition anchored in its European Green Deal agenda. The challenge for the upcoming legislature will be to implement the measures agreed upon for 2030, as outlined in the wide range of legislations passed over the last five years under the Green Deal strategy. As for the future of industry, the focus is on developing a robust industrial strategy that is intrinsically linked to the EU’s decarbonisation objectives. This is what will be at the forefront of the Commission’s priorities in the coming months and years, and it is also at the core of our subsequent panels. 

All the energy in the world is of little benefit if it cannot be put to use where it is needed. This sentiment echoed throughout the first panel “Decarbonising Power Systems for an Industrial Transition“, moderated by Luisa Keßler, Policy Advisor on Sustainable Hydrogen Economy from Bellona Deutschland, and featuring Anna Stürgkh, Member of the European Parliament from the Renew Europe Group, Federico Benito Donà, Policy Manager in Climate and Energy at the European Steel Association (EUROFER), and Bram Claeys, Senior Advisor at Regulatory Assistance Project (RAP). In face of double-digit growth forecasts on electricity use, the need for a robust grid infrastructure becomes all the more pressing. Donà affirmed that a capable electricity grid could serve as a catalyst for a broader industrial and economic transformation. But how can this be achieved? Interconnections between countries, demand-side flexibility, and significant expansions of energy storage capabilities are the key measures that Stürgkh identifies. Particularly the latter point is hindered by a major obstacle: slow permitting processes that must be accelerated. Hence, as highlighted in Bellona Europa’s Roadmap 2024-2029, bottlenecks slowing grid deployment must be addressed.  

Public administration can play an important part in yet another aspect of decarbonisation, as established in the second panel “Unlocking Markets for Low-Carbon Materials: The Role of Green Public Procurement“ moderated by Irene Domínguez Pérez, Bellona Europa’s Policy Manager on Embodied Carbon and Lead Markets. When it comes to promoting low-carbon products, a mix of push and pull policies can go a long way: Both Evita Goša, Environmental and Legal Director at Schwenk Latvija, and Eleanor Batilliet, Project Manager for Climate Neutral Industry at Agora Industry, agreed on the need for corrective carbon pricing but also the great potential stemming from the public sector’s purchasing power. During the discussion on how to harness it, the relevance of harmonisation emerged as a reoccurring theme – whether it involves the administrative procurement processes across different Member States, the need to promote the uptake of low-carbon products or the calculation methods for embodied emissions on a material level.  

For storing captured CO₂ emissions, most viable deposits are to be found offshore. Despite this circumstance, most industries continue to operate onshore. Linking CO₂ storage to emitters was the topic of the third panel, “Clearing the Path for Industrial Decarbonisation Through CO₂ Infrastructure Deployment“. Moderated by Michał Wendołowski, Senior Climate Technology & Policy Manager at Bellona Europa, the panel included Chris Bolesta, State Secretary at the Polish Ministry of Climate and Environment, Dr. Daniel Kitscha, Investment Policy Officer at the European Commission, and Isabelle Ryckbost, Secretary General of the European Sea Ports Organisation (ESPO). Ryckbost emphasised the integral role of ports in the value chain. They are among the key stakeholders whose involvement is decisive for the advancement of Carbon Capture and Storage projects, many of which are supported by the Innovation Fund and are approaching critical investment decisions. According to Kitscha, now is the time for frontrunner companies to venture into uncharted territories and make investment decisions that stretch beyond their comfort zones. Together, the panellists outlined that a collaborative effort is required across the value chain to establish an effective industrial carbon management system. 

Now, who should pay for the transition, and where should the money come from? In the closing panel of the conference ” Effective Carbon Pricing for European Low-Carbon Manufacturing: A Dialogue” perspectives from industry and climate advocacy were contrasted by Rob van der Meer, Industrial Policy Director at Cembureau, and Lidia Tamellini, Expert on EU Industrial Decarbonisation at Carbon Market Watch, under the moderation of Francesco Lombardi Stocchetti, Policy Advisor on Sustainable Economy and Finance at Bellona Europa. The trajectory of the EU-ETS had been clear from its inception, as Tamellini asserted. “CO₂ is a cost that has been externalised, and that we need to internalise.” Van der Meer acknowledged the industry’s commitment to achieve net-zero targets yet pointed out that current financial incentives are only a mere drop in the bucket – far more decarbonisation projects need to become eligible for funds in order to provide meaningful support for the cement sector’s low-carbon transition. However, available funds also need to cover various other urgent needs including climate adaptation and protecting vulnerable communities, Tamellini countered. What is clear, however, is that it is crucial to ensure that funding from the Innovation Fund and ETS revenues are spent efficiently and transparently, with the goal of establishing a robust business case for industries to decarbonise and achieve self-sufficiency. Read more on the necessity of effectively earmarking EU-ETS revenues for climate action, in Bellona Europa’s joint letter. 

“We need to bring science back into policymaking” – Director of Bellona Europa Jonas Helseth rounded up the conference in his closing remarks. He reminded that, while the challenges are great, we gathered last week in large numbers because we also recognise the reasons for optimism—together, we can still address these challenges. Critical decisions are imminent and decision-makers need to assume responsibility for the profound impact that decarbonising industry will have on tens of thousands of people across Europe. Industry is a cornerstone of the green transition, providing countless jobs, therefore there is no time for the inefficient allocation of funds. It is encouraging therefore that solutions to pollution are there, as Vandenberghe already noted in the beginning: “When I read Bellona Europa’s Roadmap for the next 5 years, it says it all – deployment of climate infrastructure, science-based policy making and well-functioning markets for a net-zero world. That is exactly what we have ahead of us.” 

Watch the after-movie!