A bold vision for a climate-neutral and competitive Europe

As part of its work programme, the European Commission has announced new legislative proposals to support the European manufacturing capacity. Green public procurement criteria for instance in terms of quality, sustainability and resilience, aim to strengthen demand for EU-made clean products and allow Europe to capitalise on decarbonisation, but currently face challenges in their implementation at the local level.

Set alongside the recent reports from former prime ministers Mario Draghi and Enrico Letta, the EU has an opportunity to accelerate decarbonisation and foster technological advancement as cornerstones of a long-term growth strategy. For this to happen, however, the Single Market must be made to work – and this will require political trade-offs between member states. It also remains important to build the business case for green products and services so as to ensure buy-in from small and medium-sized enterprises (SMEs).

The unequal and tight fiscal room for manoeuvre between the European member states represents a great challenge that negatively impacts the Single Market, jeopardises the Union’s capacity to progress jointly as a bloc and increases economic and social divergence. Time is of the essence and requires a more interventionist mindset and modus operandi from the EU.

• Given Europe’s fiscal constraints, what structural reforms and budgetary innovations should public institutions prioritise to align financial resources with the joint goal of accelerating decarbonisation and maintaining competitiveness?
• What are the challenges and opportunities in the sectors showing green growth potential, such as the bioeconomy sectors? How should regulatory efficiency be addressed in relation to evolving policy challenges?
• How can Europe implement strong framework conditions to allow the revised state aid rules to effectively de-risk manufacturing in clean technologies and accelerate clean investment?
• Considering the existential nature of the challenges facing the EU, how can citizens be taken on board to ensure trust in the European project and climate neutrality goals is maintained? 

Strategic minerals like copper, lithium and cobalt are the backbone of Europe’s net-zero transition. From electric vehicles to renewable energy systems and advanced manufacturing, our future hinges on a stable, secure supply of these critical raw materials. Yet global supply chains are becoming more fragile, with refining and processing concentrated in just a few countries.

Despite recent dips in prices, structural risks are growing; export restrictions are on the rise, investments are slowing, and diversification is stalling. With growing dependencies and too few new projects, Europe risks exposure to supply shocks and price volatility – putting both industrial competitiveness and energy security at stake.

In a time of global disruption and shifting alliances, Europe has a unique opportunity to rethink its approach, implement and strengthen its regulatory framework to integrate circularity principles and take full advantage of sufficiency measures to reduce price pressures on raw materials. By aligning its decarbonisation goals with strategic autonomy and leveraging its clean tech strengths, Europe can build a more resilient foundation for long-term growth.

• What are the emerging pressures shaping mineral markets, and what will it take to build resilient, transparent and sustainable supply chains for the decade ahead?
• As geopolitical tensions continue to reshape global trade, what vulnerabilities have emerged in the international trading system, and how should Europe respond to mitigate risks?

Artificial intelligence (AI) is poised to reshape the global energy landscape, both as a major driver of electricity demand and as a powerful tool to optimise how we produce, store and consume power. The current global surge in research and investment flows into AI technology shows optimism in its capacity to improve innovation and productivity. Tied with other disruptive technologies such as blockchain, AI systems can become even more secure and trustworthy. In addition, AI can accelerate scientific discovery, substantially improve climate modelling, and – in the energy sector alone – save up to €110bn annually and free up 175 gigawatts of transmission capacity.

At the same time, AI also has disruptive effects – the necessary infrastructure drives major electricity demand, consumes large amounts of water and produces significant quantities of electronic waste. According to new projections, electricity use by data centres is set to more than double by 2030, reaching 945 TWh – more than Japan’s total present consumption. As a key driver of electricity demand, the surge of data centres must be planned properly in terms of electricity grids and which energy sources would be best positioned to meet these increased needs.

• How can governments ensure that the deployment of AI infrastructure aligns with long-term energy security and climate goals, given its rising demand for electricity and environmental costs?
• What are the key challenges and opportunities at national or EU level in the expansion of data centres and AI computing?
• How can we make sure that AI delivers effective and impactful solutions to support the transition to climate neutrality?

Electrification is emerging as the backbone of Europe’s push for energy resilience, industrial competitiveness and accelerated decarbonisation. With the right policy framework, it can help deliver on all three fronts. The International Energy Agency (IEA) estimates that to stay on track for Net Zero by 2050, electricity’s share of total energy demand must rise by 4% each year. Electrification can already deliver substantial emission reduction benefits, for instance in road transport, space heating and low-to-medium temperature industrial heating, with additional benefits being unlocked by technological development in the next decade.

Europe’s Clean Industrial Deal aims to electrify nearly one-third of the economy within just five years, a bold step toward lowering energy costs and reaching climate goals. But electrification and the transition to clean energy will require investments in grid infrastructure, which acts as a critical enabler. The full potential of the European clean energy transition lies in smart integration: with digital technologies, renewable energy, battery storage, manufacturing and modern mobility infrastructure. A coherent and future-ready energy policy that connects these dots could supercharge clean tech innovation, improve grid interconnectivity and strengthen Europe’s competitive edge.

• What barriers remain to electrification in the European path to climate neutrality?
• How will increased electrification affect employment and skills development?
• How can the EU support the coordinated planning and investments in grid infrastructure?
• How can the EU support increased electricity integration between member states?