How to Build and Fund a Better EU Green Industrial Policy

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Publication Date February 2025
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The second von der Leyen Commission made European competitiveness its priority, with the aim of preserving the EU’s industrial base in key legacy sectors, and building and strengthening clean tech sectors that are critical for the energy transition. With China and the US deploying significant public subsidies to support their nascent clean tech industries, the author argues that the EU should no longer shy away from co-ordinating its industrial policy. As recommended by the Draghi report, EU clean tech support should be sector-specific while remaining firm-neutral. Shaping a clean industrial policy fit for the era of urgent decarbonisation and increased trade protectionism would require a mix of pragmatic trade measures, public procurement rules encouraging the purchase of European products, and public subsidies with clear environmental, labour, and national security conditions.

Source Link Link to Main Source https://www.cer.eu/publications/archive/policy-brief/2025/how-build-and-fund-better-eu-green-industrial-policy
Alternative sources
  • https://www.cer.eu/sites/default/files/pbrief_ST_EC_green_indust_19.2.25.pdf
Related Links
ESO Records
EPRS Briefings: 2023: Industrial policy, State aid and clean tech https://www.europeansources.info/record/industrial-policy-state-aid-and-clean-tech-what-think-tanks-are-thinking/
OJ (L) 2024/1735: Regulation (EU) 2024/1735 on establishing a framework of measures for strengthening Europe’s net-zero technology manufacturing ecosystem and amending Regulation (EU) 2018/1724 https://www.europeansources.info/record/proposal-for-a-regulation-on-establishing-a-framework-of-measures-for-strengthening-europes-net-zero-technology-products-manufacturing-ecosystem-net-zero-industry-act/

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