European Union | Clean, but not very social

"European industry is facing enormous challenges," said Dutch Conservative MEP Tom Berendsen during the vote on a European Parliament resolution on the EU Commission's Clean Industrial Deal. "The exodus of industrial companies from Europe is no longer a threat; it is a reality," emphasized the member of the Committee on Industry, Research and Energy responsible for the resolution. Therefore, the Commission's plan to promote European industry with a view to the ecological transformation is an important step. "But time is running out," he warned. The resolution will also be incorporated into the subsequent discussions between Parliament, the Commission, and the Council, thus helping to shape the final Clean Industrial Deal.

The Clean Industry Program, which the authority presented in February, aims to promote environmentally friendly technologies and strengthen the competitiveness of energy-intensive sectors. Planned measures include electricity price reductions and the expansion of cross-border energy infrastructure . Furthermore, public investments, such as a new bank for the decarbonization of industry, are intended to increase demand for low-emission products and improve the circular economy, access to critical raw materials, and the qualification of skilled workers for local companies.

The resolution was adopted with 381 votes in favor, 173 against, and 13 abstentions. While the Left and the nationalist to far-right factions rejected the resolution for opposing reasons, the Liberals, Conservatives, Social Democrats, and Greens voted in favor with a few abstentions. Green MEP Michael Bloss emphasized that an industrial policy "that combines climate protection, competitiveness, and security" was needed. Clean technology represents a major opportunity for this. At the initiative of the Greens, the call for an action plan was therefore included that provides for investments in sustainable battery production, renewable energies, energy efficiency, and electrification. This also requires greater integration of the European market, with grid operators and the Commission promoting cross-border electricity trading. Currently, fragmented regulatory oversight and investment planning are hindering integration.

The environmental organization WWF views the parliament's decision as a positive signal, for example with regard to the _Carbon Border Adjustment Mechanism (CBAM) and the gradual abolition of free certificates under the Emissions Trading System (ETS). "This could create a _CO2 price that has a steering effect and encourages the transition to climate-friendly production," explained Viviane Raddatz, climate expert at WWF. Raddatz was also convinced that the establishment of a bank for the targeted financing of climate-friendly technologies was a step in the right direction. However, investments must flow into sustainable technologies promptly. This would require clear targets for the decarbonization of industry, which are currently lacking, as are concrete greenhouse gas limits and minimum recycling rates.

The European Trade Union Confederation (ETUC), however, is critical of the resolution. It criticizes the fact that no social standards are linked to the funding, such as respect for collective bargaining or the co-determination rights of employees and unions. "Public funds must not be a blank check for companies," emphasized ETUC General Secretary Esther Lynch. "Social conditionality is not a bureaucratic add-on, but the backbone of a fairer Europe. It is time for EU institutions and national governments to back up their words with binding action through social conditionality."

The EU Left expressed a similar view, believing the measures do not go far enough. "The Clean Industrial Deal increasingly waters down measures to prevent climate change," the group criticized in a statement. The Commission's package proposes the reduction of reporting requirements and an acceleration of project funding measures to ease the burden on small and medium-sized enterprises. This would create subsidies and publicly funded investment incentives for companies without linking them to social standards. This would endanger the social transformation, without which the ecological transformation would be unthinkable. "The resolution pushes the Commission's already weak proposal even further in the wrong direction," complained Danish Left MEP Per Clausen.