“EU Announces Clean Industrial Deal to Transition Steel and Cement Industries to Net-Zero Emissions”
The European Commission has recently announced a new Clean Industrial Deal aimed at helping industries like steel and cement transition to net-zero emissions. The legislative package includes measures to boost clean technology companies, such as those producing electric vehicle charging stations.
While the commission has reaffirmed its goal of slashing emissions by 90 percent by 2040, some environmental groups have criticized the deal for weakening environmental reporting requirements for small- and medium-sized businesses. NGOs have expressed concerns that the deal focuses too narrowly on decarbonization and overlooks broader pollution and environmental responsibilities.
The Clean Industrial Deal includes 40 measures designed to accelerate the transition to clean energy, such as faster permits for infrastructure like wind farms and changes to public procurement rules to favor European-made clean technology. The European Commission plans to establish an industrial decarbonization bank with approximately $104 billion in public funds, which could leverage an additional $416 billion from the private sector.
However, critics have pointed out that a global investment of hundreds of billions will be needed to build the necessary electric grids to meet climate goals. Some experts have also raised concerns about the lack of concrete plans to mobilize additional finance and ensure companies contribute to a fair, competitive, and climate-proof economy.
Business groups have generally supported the plan, while environmental organizations have highlighted areas where they believe the deal falls short. Green MEP Anna Cavazzini has criticized the watering down of due diligence directives, warning that environmental crimes and human rights violations may not be prevented.
Overall, the Clean Industrial Deal represents a significant step towards decarbonizing industries like steel and cement. However, it also highlights the challenges and complexities of transitioning to a net-zero economy while balancing environmental, economic, and social considerations.