Brussels, 23 April 2024

Extended Position Paper on the Extension
of Autonomous Trade Measures for Ukraine

 

Union of Entrepreneurs and Employers and European Enterprise Alliance reaffirm our commitment to fostering economic cooperation between the EU and Ukraine. Amidst the ongoing invasion, the extension of Autonomous Trade Measures (ATMs) holds significant promise in bolstering Ukraine’s economic recovery. Nevertheless, the application of safeguard mechanisms must be approached with careful consideration to ensure they facilitate rather than hinder Ukraine’s progress.

Background

This week, during the plenary session in the European Parliament, the Regulation pertaining to the extension of Autonomous Trade Measures (ATMs) for Ukraine was voted on. This decision follows a series of pivotal events signaling the EU’s commitment to supporting Ukraine’s economic resilience. On February 23, the European Commission proposed to extend the regulation governing ATMs for another year. EU member states’ representatives (Coreper) confirmed the provisional deal reached earlier between the Council presidency and the European Parliament representatives to renew the suspension of import duties and quotas on Ukrainian exports on April 10, 2024. The next steps involve the adoption of the regulation by the Council, followed by its signing by the representatives of the Council and the European Parliament, and publication in the Official Journal, before entering into force on 6 June 2024.

While safeguard mechanisms are crucial for maintaining market stability, we advocate for a nuanced approach to their implementation, ensuring they support Ukraine’s economic recovery without imposing undue restrictions.

Safeguard Mechanisms

It is important to underline that currently not all of Ukraine’s import duties are reduced to zero through 2025, with certain agri-food tariffs subject to limited linear reductions. Specifically, goods such as dairy, eggs, sugar, animal oils, and fats will also undergo reductions ranging from 20% to 60%, with residual tariffs applied thereafter for sugars, poultry meat, and pork meat. A new automatic safeguard will also be added for certain sensitive products, such as poultry, eggs, sugar, oats, maize, groats, and honey.

The safeguard mechanism includes:

Regular Monitoring: The Commission will regularly monitor the impact of the Regulation on exports, imports, and prices in the Union market or the market of one or several Member States.

Assessment Procedure: The Commission will assess the situation of the Union market for like or directly competing products, considering factors such as import trends, production impacts, and market dynamics.

Provisional Safeguard Measures: In critical circumstances, the Commission may provisionally impose necessary measures if delay would cause irreparable damage. This provision requires a substantiated request from a Member State and imposes a time limit of 21 days for adoption.

Reintroduction of Tariff-Rate Quotas: if during the period 6 June to 31 December 2024, cumulative import volumes of either eggs, poultry, or sugar since 1 January 2024 reach the respective arithmetic mean of import volumes recorded in 2022 and 2023, the Commission shall, within 21 days and after informing the Committee on Safeguards established by Article 3(1) of Regulation (EU) 2015/478, reintroduce for that product the corresponding tariff-rate quota suspended by Article 1(1), point b, until 31 December 2024, and introduce from 1 January 2025 either a tariff-rate quota equal to five-twelfths of that arithmetic mean or the corresponding tariff-rate quota suspended by Article 1(1), point b, whichever is higher .

While the provision for provisional safeguard measures acknowledges the need for swift action in critical circumstances, it also introduces uncertainty for Ukrainian exporters. The requirement for a substantiated request from a Member State may delay the imposition of necessary measures, potentially exacerbating the impact of market disruptions on Ukraine’s agricultural sector. Therefore, it is imperative to streamline the process for adopting provisional safeguard measures, ensuring prompt response to emerging challenges without undue bureaucratic hurdles. Additionally, the reintroduction of tariff-rate quotas based on cumulative import volumes poses a significant risk to Ukraine’s export stability. By linking import thresholds to historical averages, the mechanism may fail to account for evolving market dynamics or seasonal variations in demand. This rigidity could restrict Ukrainian exporters’ access to the EU market, undermining the benefits of trade liberalization measures and hindering Ukraine’s economic recovery efforts.

While recognizing the necessity of safeguard measures outlined in the trade agreement, including tariff-rate quotas (TRQs) and entry-price systems for certain agricultural products, we stress the need for flexibility in their implementation. We urge policymakers to adopt a nuanced approach to safeguard measures, taking into account the evolving economic situation in Ukraine. Regular monitoring and impact assessments should guide the implementation of TRQs and other safeguard mechanisms, allowing for adjustments based on actual market dynamics. As Ukraine strives to rebuild its economy in the face of aggression, it is essential to strike a balance between solidarity with Ukraine and the economic realities of both parties. Collaborative efforts between the EU and Ukraine are crucial in ensuring that trade policies support economic stability and growth in both regions.

As the European Enterprise Alliance and Union of Entrepreneurs and Employers, we emphasize the importance of fostering a cooperative and mutually beneficial relationship between the EU and Ukraine. While safeguard measures are integral to maintaining market stability, they must be implemented with flexibility and consideration for Ukraine’s economic recovery and growth.

See more: 23.04.2024 Extended Position Paper on the Extension of Autonomous Trade Measures for Ukraine

 

Position Paper on the Extension of
Autonomous Trade Measures for Ukraine

European The European Enterprise Alliance and Union of Entrepreneurs and Employers (ZPP) present our position on the Extension of Autonomous Trade Measures for Ukraine. We emphasise the importance of these measures in enhancing economic cooperation, fostering resilience, and promoting sustainable development between the EU and Ukraine.

Background Autonomous Trade Measures (ATMs) have been pivotal tools employed by the European Union (EU) since June 4, 2022, as part of the ATM Regulation 2022/870, set to last for one year. These measures encompass a comprehensive removal of import duties on industrial products, including the complete elimination of all tariffrate quotas on agricultural and food products. Additionally, the EU has abolished entry prices on fruit and vegetables and suspended all trade defence measures, notably anti-dumping duties and safeguards, particularly applied to steel products. Moreover, the EU has taken additional steps to streamline transportation and border control for Ukraine’s exports. Specifically, it has temporarily liberalized freight transportation by road between the EU and Ukraine, eliminating the need for permits, a measure extended until June 30, 2024. Furthermore, Ukraine’s accession to the Common Transit Convention in October 2022 has simplified customs transit procedures between the EU and Ukraine, facilitating smoother trade operations. On February 23, the European Commission proposed a pivotal decision to extend the regulation governing Autonomous Trade Measures (ATMs) for another year, and on March 20, the Council and Parliament reached a deal to renew the EU’s autonomous trade measures for Ukraine until 5 June 2025. Ukraine’s trade landscape has been profoundly impacted by the ongoing invasion of Russia, necessitating further support to mitigate economic losses and bolster resilience. The economic toll of Russia’s aggression against Ukraine has been staggering, with the Ukrainian economy shrinking by approximately one-third and exports plummeting by 35.1% in 2022 compared to the previous year. This decline translated to a staggering $24 billion reduction in foreign currency revenue for Ukraine in 2022. Particularly hard-hit was the iron and steel industry, which experienced a 67.5% reduction in export supplies, amounting to $9.4 billion less in exports compared to the previous year. Other sectors, including ore exports, chemicals, machinery, and electronic equipment, also witnessed significant declines. Amidst these challenges, Ukraine’s reliance on agricultural and food exports has surged during wartime, accounting for more than half of all critically needed export revenues. However, even as agricultural and food products gained prominence, total exports in this sector declined by 15.5% or $4.3 billion in 2022. The conflict has also disrupted Ukraine’s key export routes, particularly through the blockade of Black Sea ports by Russia, and inflicted significant damage on production facilities and critical infrastructure, exacerbating the economic strain on Ukrainian producers. Internal and external supply chain disruptions, coupled with shortages of critical imports and rising production and logistics costs, have further compounded the challenges faced by Ukrainian exporters, threatening their profitability and competitiveness in global markets. Despite these adversities, Ukraine has witnessed a remarkable recovery in exports to the EU, which surpassed pre-invasion levels by the end of 2022. The EU emerged as Ukraine’s principal trading partner, with exports to the EU accounting for 63% of Ukraine’s total exports in 2022. Notably, the growth of agri-food exports to the EU played a pivotal role in this recovery, with exports increasing by more than $5.2 billion, driven by factors such as logistics problems, high freight and insurance costs, and increased demand in the EU due to a drought affecting Rue d’Arlon 46 EnterpriseNumber Belgium EU Transparency Register enterprisealliance.eu 1000 Bruxelles 0733.737.395 329556137684-27 many regions of Europe. Temporary trade-liberalization measures, including the suspension of tariff rate quotas (TRQs), have played a crucial role in facilitating Ukrainian exports to the EU, providing Ukrainian products with a competitive edge in European markets. However, challenges persist, as evidenced by the need for compromise solutions between the Commission and EU member states to address concerns regarding the impact of Ukrainian mports on local markets. While the EU’s continued support signals its commitment to Ukraine, the risk of prolonged or new import restrictions underscores the uncertainties and pressures faced by Ukrainian agri-food producers amidst the evolving trade dynamics. Ukraine, endowed with fertile agricultural land and a favourable climate, holds significant potential as a supplier of agrifood products to the EU market. With its vast agricultural resources, Ukraine has emerged as one of the world’s leading exporters of commodities such as grains, oilseeds, and sunflower oil. Furthermore, the country’s agrifood sector has demonstrated a commitment to sustainable agricultural practices, aligning with the EU’s objectives regarding environmental protection and food safety standards.

Key Points for Consideration

Strengthening connectivity between Ukraine and the EU is imperative Ensuring the smooth operation and enhancing the capacity of the Solidarity Lanes are crucial for facilitating the transit of Ukraine’s agricultural and non-agricultural exports to both global markets and EU member states, particularly during wartime. Urgent investment is needed to improve EU-Ukraine road, rail, and river connections, deepen river canals, expand transport resources, upgrade EU-Ukraine border infrastructure, construct transshipment terminals, and augment grain and food storage facilities in Eastern European nations. These initiatives aim to streamline transit operations across these countries and bolster the resilience of Ukraine’s export channels. While alternative routes cannot fully substitute Ukrainian seaports currently under Russian occupation, they have contributed to diversifying Ukraine’s export routes, reducing Kyiv’s reliance on the grain agreement and seaport routes, and mitigating Russia’s control over shipping Ukraine’s exports. With Russia’s withdrawal from the grain agreement, the importance of the Solidarity Lanes has significantly increased for Ukraine’s trade. Expanding the Solidarity Lanes, extending European Transport Corridors (TEN-T) into Ukraine, and advancing the Ukrainian segment of the TEN-T network is pivotal for Ukraine’s post-war recovery and deeper integration into the EU Single Market. Improving connectivity and interoperability of transportation systems in Ukraine and the EU is also vital for enhancing the effectiveness and resilience of EU food supply chains. These endeavours will benefit Ukraine, the EU, and global food security while fostering stronger economic ties and fostering stability in the region.

Common Agricultural Policy (CAP) Considerations

The implementation of Autonomous Trade Measures and Temporary Trade Liberalization must consider the implications for the EU’s Common Agricultural Policy (CAP). Increased imports of Ukrainian agrifood products present an opportunity for the EU to diversify its sources and enhance food security. Moreover, access to highquality Ukrainian agricultural products can benefit European consumers by offering a wider variety of choices at competitive prices. However, it is crucial to ensure that such imports do not unduly harm domestic agricultural producers within the EU. Therefore, policymakers should explore mechanisms to support EU farmers in adapting to increased competition while preserving market stability, maintaining income support mechanisms, and upholding environmental and animal welfare standards.

Data and Impact Assessment

Robust data collection and impact assessments are essential for understanding the potential effects of increased Ukrainian agri-food imports on the EU market. Comprehensive analysis should consider factors such as production volumes, market prices, employment trends, and environmental impacts. 

Market Access and Regulatory Alignment

Enhancing market access for Ukrainian agrifood products requires alignment with EU regulatory standards and certification requirements. Close cooperation between Ukrainian authorities and EU regulatory agencies is essential to ensure compliance with food safety, phytosanitary, and quality standards. By promoting regulatory alignment and mutual recognition agreements, policymakers can facilitate seamless trade flows and enhance consumer confidence in Ukrainian agri-food products. Moreover, fostering a collaborative regulatory environment can promote regulatory convergence and facilitate trade partnerships based on mutual trust and respect for international standards. 

Conclusion

The extension of Trade Liberalization represents a significant opportunity for both Ukraine and the European Union to enhance economic cooperation and foster mutual prosperity. By leveraging Ukraine’s agricultural potential and addressing concerns related to market stability, environmental sustainability, and regulatory compliance, the EU can strengthen its partnership with Ukraine and create opportunities for economic growth and development. As partners in progress, the EU and Ukraine must work collaboratively to realize the shared vision of a prosperous and interconnected agricultural sector. The European Enterprise Alliance and Union of Entrepreneurs and Employers stand ready to support and advocate for policies that promote a sustainable and mutually beneficial trade relationship between the EU and Ukraine.

Bibliography

Taran, Svitlana. EU-Ukraine Wartime Trade: Overcoming Difficulties, Forging a European Path. European Policy Centre, 21 Aug. 2023. Proposal for a REGULATION of the EUROPEAN PARLIAMENT and of the COUNCIL on Temporary Trade Liberalisation Supplementing Trade Concessions Applicable to Ukrainian Products under the Association Agreement between the European Union and the European Atomic Energy Community and Their Member States, of the One Part, and Ukraine, of the Other Part. 23 Feb. 2024.

 

See more: Position Paper on the Extension of Autonomous Trade Measures for Ukraine

Brussels, 4 March 2024 

Position Paper on Electricity Report by IEA

 

European Enterprise Alliance and the Union of Entrepreneurs and Employers (ZPP) affirm their stance on the pivotal role of electricity reforms in the European Union. Committed to fostering a resilient and forward-thinking energy landscape, the European Enterprise Alliance stands in collective support of initiatives aimed at enhancing the efficiency and sustainability of the electricity market while ensuring economic stability.

Background

The European electricity market witnessed significant developments and reforms in 2023, driven by economic conditions, policy changes, technological advancements, and environmental concerns according to the report published by the International Energy Agency (IEA)[1]. What can be taken from the Report for the EU?

Electricity Demand and Generation Trends:

Across Europe, electricity demand experienced a decline in 2023, primarily due to slowdowns in manufacturing and industrial activities. While this trend was evident continent-wide, specific countries displayed varying patterns in electricity consumption. Notably, Portugal, Croatia, Cyprus, Malta, Ireland, Denmark, and Norway bucked the overall trend, witnessing increases in electricity usage. Although Germany experienced a decrease in electricity demand in 2023, largely attributed to weak industrial activity. However, signs of recovery are evident, particularly in the industrial sector, fueled by the increasing adoption of electric vehicles (EVs) and heat pumps. In parallel, the role of renewables is poised to expand, with coal and gas-fired generation witnessing declines. Similar to Germany, Italy observed a decrease in electricity demand in 2023.

Nevertheless, the country saw growth in renewable generation and intensified its focus on energy efficiency projects and renewable energy initiatives. Italy aims to surpass a 50% share of renewables in total generation by 2024. Overall, Despite the overall decline in demand, renewable energy generation continued to grow, offsetting reductions in fossil-fired power generation.

European Union Electricity Market Reform:

Recognizing the need for comprehensive reform, the European Union embarked on a journey to revamp its electricity market in 2023. The reform aimed to mitigate price volatility, safeguard consumer interests, and adapt the energy system for higher renewable energy penetration. It introduced measures such as promoting power purchase agreements (PPAs), ensuring freedom of choice for energy providers, and facilitating energy-sharing schemes for self-consumption. Additionally, provisions were established to protect energy-vulnerable communities and establish backup suppliers during crises.

Renewable Energy Directive and Grid Development:

In tandem with market reforms, the European Union adopted the new Renewable Energy Directive (RED III) to accelerate the integration of renewable energy sources. Setting ambitious targets, RED III aimed for a renewable energy share of 42.5% by 2030, with aspirations to reach 45%. The directive seeks to expedite the approval of new renewable projects and increase renewable energy utilization across transport, industry, and buildings. Furthermore, the EU Action Plan for Grids highlighted the indispensable role of electricity grids in supporting decentralisation, digitalisation, and flexibility initiatives. Amid these overarching reforms, France experienced a resurgence in nuclear power generation in 2023, overcoming challenges in supply dynamics. Concurrently, renewable energy witnessed growth, contributing to decreased gas burn in the power sector. To further bolster renewable energy deployment, the French government passed the Renewable Acceleration Bill, aimed at easing the deployment of renewable technologies.

Policy Recommendations for Strengthening Energy Security in the European Union

The European Union should prioritize diversifying its energy sources to reduce reliance on external suppliers and enhance energy security. The IEA’s 2024 electricity report underscores the importance of this recommendation, highlighting the risks associated with dependency on external sources, particularly fossil fuels.

EU can leverage its renewable energy potential and invest in domestic renewable energy production. For instance, countries like Germany and Spain have made significant strides in renewable energy deployment, with wind and solar power contributing substantially to their electricity generation mix. By promoting energy efficiency measures and incentivizing the adoption of renewable energy technologies, the EU can reduce its reliance on fossil fuels and transition towards a more sustainable and resilient energy system.

Moreover, exploring alternative energy sources such as hydrogen and nuclear energy can further diversify the EU’s energy mix and enhance energy security. Countries like France, with its extensive nuclear energy infrastructure, serve as examples of successful nuclear energy deployment. However, careful consideration should be given to safety and environmental concerns associated with nuclear energy, highlighting the importance of robust regulatory frameworks and technological innovation in ensuring safe and sustainable nuclear energy production.

Cross-border cooperation in infrastructure development is also essential for enhancing resilience and promoting energy security in the EU. By investing in interconnection projects and cross-border transmission lines, the EU can improve energy market integration and facilitate the exchange of electricity between member states. Initiatives like the North Sea Wind Power Hub, which aims to create a network of interconnected offshore wind farms in the North Sea, demonstrate the potential of cross-border collaboration in advancing renewable energy deployment and strengthening energy security.

Conclusion

The European electricity market underwent significant transformations in 2023, characterized by declining demand, increasing renewable energy penetration, and comprehensive market reforms. As countries across Europe transition towards a cleaner and more sustainable energy future, continued investment in renewable energy, grid infrastructure, and policy initiatives will be crucial to achieving long-term energy objectives. it is crucial to highlight the significant potential of the Baltic Sea for offshore wind energy projects, exemplified by initiatives such as Baltic Power and the ongoing construction of PGE Baltica. The emerging opportunities for renewable energy development in the region are highlighted by this project and emphasizing the need to strengthen the European Union’s supply chain to support ambitious ventures is essential for advancing the continent’s sustainability goals. Additionally, advocating for streamlined revisions in the renewable energy sources (RES) auction framework, as outlined in the Net Zero Industry Act, is vital for creating an environment conducive to innovation and investment. Recognizing and harnessing the Baltic Sea’s potential for offshore wind energy and advocating for systemic reforms will enable the European Union to pave the way for a resilient and sustainable energy future.

European Enterprise Alliance and the Union of Entrepreneurs and Employers envision a stable, resilient, and sustainable electricity sector. The IEA Report on Electricity underscores the pivotal role of concerted efforts in achieving these aspirations, ensuring a future aligned with Europe’s economic and environmental goals. As we navigate these critical steps, the EU and its member states should act decisively to foster the development of policies and initiatives outlined in the IEA Report to secure a sustainable electrification future.

[1] “Electricity 2024 – Analysis.” IEA, Jan. 2024, www.iea.org/reports/electricity-2024.

 

See more: 04.03.2024 Position Paper of ZPP and EEA on Electricity Report by IEA

Warsaw, 14^th  December 2023

 

Position Paper on the Importance of the Net-Zero Industry Act for the European Union (EU) 

 

Union of Entrepreneurs and Employers (ZPP) and European Enterprise Alliance present our position on the crucial role of the Net-Zero Industry Act in advancing sustainable decarbonization in the European Union. Committed to fostering a resilient and environmentally responsible energy future, we, European Enterprise Alliance, collectively support the imperative role of the Net-Zero Industry Act in achieving the European Union’s ambitious emission reduction goals and fostering economic stability.

Background

The Net-Zero Industry Act (NZIA), proposed by the European Commission on March 16, 2023, represents a pivotal step towards strengthening the European manufacturing capacity for net-zero technologies (European Commission, 2023). It addresses barriers to scaling up manufacturing capacity in Europe, aiming to enhance competitiveness, resilience, and energy security. The Act underscores Europe’s commitment to leading the net-zero technology transition, aligning with the Fit-for-55 and REPowerEU objectives.

The NZIA distinguishes between net-zero technologies and strategic net-zero technologies, the latter making significant contributions to decarbonization by 2030. Strategic technologies, including solar photovoltaic and solar thermal technologies, onshore and offshore wind renewable technologies, battery/storage technologies, heat pumps and geothermal energy technologies, electrolyzers and fuel cells, sustainable biogas/biomethane technologies, carbon capture and storage (CCS) technologies, and grid technologies, benefit from additional advantages such as resilience criteria in auctions and potential Net-Zero strategic project status.

There are a couple of critical points that need to be examined about the Act:

• National Representation:

The call for a Plenipotentiary reflects the imperative need for a dedicated representative who possesses the authority to engage in nuanced negotiations with the European Union on matters concerning the Net-Zero Industry Act. This approach between the member state and the EU ensures that all national interests, concerns, and perspectives are not only effectively conveyed but also meticulously considered during the implementation phases of the Net-Zero Industry Act. However, concerns might linger about potential bureaucratic complexities and the risk of the Plenipotentiary becoming a bottleneck in decision-making. Achieving the right equilibrium between authority and streamlined processes will be crucial to avoiding hindrances in the Act’s swift and efficient execution.

• Net-Zero Platform:

The Net-Zero Act transcends a mere information-sharing forum; it embodies a collaborative space designed to facilitate thorough discussions, share valuable insights, and garner input from diverse stakeholders across the European Commission and EU countries. Through open dialogue and comprehensive information exchange, this platform becomes a cornerstone for fostering a cohesive and well-informed approach to the challenges and opportunities presented by the Net-Zero Industry Act. Yet, the challenge lies in preventing the platform from becoming a forum for extended deliberations without tangible outcomes. Balancing inclusivity with efficiency will be key to turning insights into actionable policies, ensuring the platform’s effectiveness in steering the net-zero agenda.

• Non-Price Support Systems:

Non-price support systems would revolutionize the auction system, ensuring that resilience and innovation become integral criteria, incentivizing industries to prioritize these aspects alongside economic considerations. However, concerns arise about potential subjectivity and the challenge of quantifying qualitative factors, which requires a balance between flexibility and objectivity will be essential to avoid unintended consequences and ensure fair competition.

• Innovation Valleys:

Innovation valleys would serve as specialized hubs, either geographically or in terms of competencies, providing a conducive environment for research, development, and innovation in net-zero technologies. On the other hand, the effectiveness of these valleys may hinge on the allocation of funds and the risk of creating regional disparities, the member states might ensure equal opportunities and preventing concentration in specific regions will be vital for the equitable development of net-zero technologies.

• Academies for Skills Enhancement:

Net-zero academies would play a pivotal role in addressing the skills gap, offering targeted training programs for various net-zero technologies, and facilitating the transferability of qualifications. However, concerns arise regarding the ambitious target of training 100,000 learners within three years of establishment. There should be a feasible expectation regarding the quantity and quality, and ensuring rigorous standards will be imperative to avoid compromising the effectiveness of the training programs.

• Funding Challenges:

The funding challenge is a critical aspect that demands urgent attention. Exploring innovative financing mechanisms, such as leveraging the National Recovery Plan and redirecting funds from the ETS, could provide the necessary financial support for the ambitious goals outlined in the Net-Zero Industry Act. However, the potential reliance on funds from the Sovereignty Fund may raise questions about diverting resources from other essential national priorities.

• Innovation Fund Reallocation:

The Innovation Fund, traditionally allocated to generational and innovative projects, could be strategically redirected to support the development and implementation of supply chain activities and tangible projects within the Net Zero industry, ensuring a practical impact on the ground.

• Complexity and Opportunities:

Recognizing the challenges that entrepreneurs may face in navigating the intricacies of the Net-Zero Industry Act is essential. Simultaneously, it’s crucial to underscore the vast opportunities this presents for the renewable energy industry, creating a conducive environment for growth, innovation, and market competitiveness. However, the concern here is the possibility of overburdening entrepreneurs with regulatory complexities, potentially stifling innovation. We, therefore, recommend a regulatory adherence and entrepreneurial freedom will be crucial to avoiding unintended consequences and fostering a thriving renewable energy sector.

• American Inflation Reduction Act Influence:

Drawing inspiration from successful models is a commendable approach, but cautious evaluation of potential risks, particularly the risk of production relocation, is vital. Balancing competitiveness with global collaboration should be a priority in implementing the Net-Zero Industry Act. Yet, a cautious assessment of potential risks, particularly the prospect of production relocation from Europe to the USA, is imperative. A comprehensive risk mitigation strategy should be integral to the implementation of the Net-Zero Industry Act.

Conclusion

The Net-Zero Industry Act is instrumental in securing the transition to climate neutrality, establishing a competitive net-zero industrial base in the EU, and reducing dependency on imports. We recommend swift legislative efforts, including the development of net-zero industry national policies, resource assessment for CCS projects, financial guarantees for investors, and active international engagement to address challenges and promote a cohesive European approach to net-zero technology adoption.

European Enterprises Alliance and the Union of Entrepreneurs and Employers envision a stable, resilient, and sustainable energy sector. The Net-Zero Industry Act plays a crucial role in achieving these aspirations, ensuring a low-carbon future that aligns with Europe’s economic and environmental goals. As we navigate these critical steps, the EU and its member states must act decisively to foster the development of the Net-Zero Industry Act and secure a sustainable, net-zero future.

References:

“The Net-Zero Industry Act: Accelerating the transition to climate neutrality” – https://single-market-economy.ec.europa.eu/industry/sustainability/net-zero-industry-act_en

See more: 14.12.2023 Position Paper on the Importance of the Net-Zero Industry Act for the European Union (EU)