New EU agenda unites climate action and competitiveness

Following last month’s Competitiveness Compass, February was spent in anticipation of a few big communications that came all on the same day, just this week. These communications included the Clean Industrial Deal, the Affordable Energy Action Plan, and the Omnibus packages.

I had the honour of being in Antwerp alongside SolarPower Europe’s President, Aristotelis Chantavas, at the European Industry Summit 2025. The event gathered 400+ business representatives to hear European Commission President Ursula von der Leyen deliver her address in the flesh.

President von der Leyen made clear the crucial role of renewables in her speech, stating, “Since the launch of the European Green Deal, we have saved EUR 60 billion of fossil fuel imports. How was this possible? Because of the low carbon approach; thanks to cheap, homegrown renewables.”

Here is an overview of what is included, and what’s not:

The Clean Industrial Deal brilliantly sets electrification as a key pillar for industrial competitiveness and decarbonisation, including a new 32% electrification target by 2030. At SolarPower Europe, we see that as a floor, not a ceiling. There are plenty of energy uses that are low-hanging fruit to electrify. 

However, dedicated financial support for electrification needs to materialise. Flexible, renewable-based, electrification can reduce day-ahead energy prices by 25% by 2030. Investment in electrification must be prioritised over short-term fossil-based solutions. 

Getting the upcoming Grids Package right is critical to the success of the competitiveness agenda. We are urging the Commission to make it a Grids and Storage Package. Battery storage is the absolute shortcut to lower, less-volatile energy prices. Where is Europe’s battery storage strategy?  

The publication provides a specific boost for European solar manufacturers – this is great to see. The intention to prefer EU-made products in public procurement should strengthen the Net-Zero Industry Act, but we urgently need to complement that with financing support for building and operating factories. We need to see EU products better rewarded in public procurement while staying clear of unnecessary barriers to solar deployment.

The Affordable Energy Action Plan has the right framing, focus and sequence of action points, starting with freeing electricity bills from unnecessary taxes and levies, and then making electricity structurally cheaper by boosting grids, flexibility and faster renewables permitting. The plan is right, time to action. However, we made sure to caution against plans to finance more LNG infrastructure, and any expectations that this would help reduce fossil fuel price volatility. 

Under the Omnibus packages, aligning the scope and obligations between the CSRD and CSDDD is sensible as long as it doesn’t water down regulatory objectives. Simplification should not mean deregulation. We are pleased to see Multi-Stakeholder Initiatives maintain their central role under the CSDDD, which should be aligned under the Forced Labour Regulation (and other relevant due diligence legislation). Such initiatives will only become more important as routes-to-compliance.

For members, we have a full analysis in our Weekly Policy Update which you can access via the members area on our website.

We looking forward to diving into these hot topics with policymakers, industry and more at the SolarPower Summit: #LetsFlex on 26-27 March 2025. Check out the programme and register for the event here.