Key asks include: 

• Simplification must not come at the expense of climate ambition 

• Ambitious, science-based EU climate targets for 2035 and 2040, must be adopted ahead of COP30 

• Cohesion between desired climate outcomes and policy is needed to empower a sustainable transition to low-carbon steelmaking. 

Following President von der Leyen’s State of the Union address today, Bellona Europa warns that overlooking the European climate commitments will undermine both Europe’s climate leadership and its industrial competitiveness. 

Quotes:  

Context:  

Following the State of the Union, in the first year of the von der Leyen II Commission, climate and environment concerns seem to have been sidelined. The President of the European Commission refrained from calling for stronger climate action, instead putting the noun “clean” in the driving seat.  

Bellona has long worked to promote lead markets for clean products, which has been one of the cornerstones of the upcoming Industrial Decarbonisation Accelerator Act (IDAA). However, when President von der Leyen mentioned the proposal for the “Industrial Accelerator Act”, the decarbonisation “D” of the IDAA was strikingly missing, forgetting the very element that should be at the center. European preference criteria, in public procurement and beyond, must occur within a framework that puts EU climate commitments at the forefront, or risk locking in less sustainable production pathways and disincentivising European industrial decarbonisation. Furthermore, the numerous simplification packages and pushback on the Green Claims Directive demonstrate a potential weakening of industry accountability towards climate.  With under 15 days until the COP30 deadline for 2035 emission pledges, EU states still lack agreement on their national plans or the common 2040 target. 

In the address, it was made crystal clear that the EU should keep investing in clean technologies to strengthen its competitiveness. The proposed inclusion of international carbon credits in the 2040 climate target would undermine this objective by outsourcing emission reductions. 

Following today’s address, we are concerned that this path will not protect European industry. It could shield it from the innovation it urgently needs and condemn it to weakening in global markets. In doing so, the European Union could not only lose credibility on the international stage but also forfeit its leading role in the fight against climate change, putting the environment, citizens and the future of the European economy at risk. 

Energy prices are still a significant issue for industry. The best way to tackle high prices is through home-grown renewable electricity: scale local renewables, modernise and expand grids, and electrify demand. Now turn the Grids Package and “Energy Highways” into proper action. 

The steel industry is one example; at a crossroads, it remains the largest polluting industry in Europe, while global overcapacity cuts the profit margins of producers. At the same time, several large steelmakers in the EU are stepping back from commitments to decarbonise, even after receiving large public subsidies. There must be cohesion between desired climate outcomes and policy to empower a sustainable transition to low-carbon steelmaking. 

• Press Release (pdf)