Strengthening Europe’s industrial edge: A business roadmap for resilience and competitiveness

Dear Members of the European Council, European Commission and European Parliament

In an era of geopolitical tensions, economic uncertainty and intensifying global competition, we – business leaders dedicated to Europe’s industrial future – see the green and digital transitions as a vital opportunity to boost Europe’s competitiveness.

Globally clean technology deployment is growing exponentially and a technological revolution in energy is underway. Costs continue to fall and technologies to improve.i Europe’s clean industrial transformation is ensuring the European economy participates in these technological trends, while strengthening its competitiveness and resilience, bringing tangible benefits to citizens and businesses alike. But Europe’s pace must accelerate, on investment and on action.

Scaling markets to bring down prices and ensuring global technological leadership are two sides of the same coin. As Mario Draghi’s report makes clear, success depends on clear political direction, regulatory stability and enabling conditions for industrial reinvestment and innovation.ii

The EU can cement a role as a global leader in clean industries, energy efficiency and climate innovation.iii To stay ahead Europe must underpin this position with stable policies, targeted support, lead markets and strategic supply chain partnerships.iv Europe cannot afford to lose any frontrunner advantage or repeat past mistakes.

A strategic opportunity for Europe to lead

We see the Clean Industrial Deal (CID) not only as a policy framework but as a strategic chance to lead global races for clean innovation and technology, fostering new global partnerships while building on the EU’s strong industrial base and leveraging the potential of its single market.v

Yet short-term competitive pressures on energy- and resource-intensive industries are real. Many are already investing heavily in decarbonisation, as recognised by Ursula von der Leyen in her State of the Union address. These efforts must be assisted and rewarded. The CID should provide the right incentives and frameworks to support industries facing critical reinvestment decisions before 2030.

Regulatory stability: a cornerstone of competitiveness

Europe’s predictable climate and energy framework is one of its greatest competitive assets. Regulatory stability does not mean inertia; it means simplifying where possible, while preserving a clear, credible long-term direction. Abrupt reversals or fragmented approaches risks undermining investor confidence, companies’ progress and delaying industrial renewal – impacting sustainable industrial competitiveness right now. The CID should therefore prioritise targeted reforms that make transformation easier and clean investment more attractive – with a practical, forward-looking set of immediate priorities.

Turning priorities into action: a business roadmap

Direction of travel: a 90 per cent climate target for 2040

A robust 2040 climate target would send a vital signal of Europe’s continued commitment to climate neutrality and industrial leadership. Businesses and investors see decarbonisation and competitiveness as mutually reinforcing, and support framing the CID as the vehicle to achieve at least a 90 per cent reduction by 2040. Alongside effective enabling policies – including reaffirming the Emission Trading System timeline – this would boost confidence and accelerate investment.

Clean energy, energy efficiency and electrification

Affordable, reliable clean energy is essential for competitiveness and for communities across Europe.vi High energy prices remain a barrier for industry and households alike. Scaling up electrification, building renovation and low carbon transport will lower costs, enhance security, and reduce geopolitical risks. This requires coordinated infrastructure investment and a supportive legal framework on permitting and financial incentives.

Lead markets for innovative, low carbon products

Strong demand is key to scaling clean industries. Clear standards, strategic public procurement and market development for low carbon goods will drive down prices and foster innovation – helping to build competitive and sustainable industries. Low carbon energy, particularly electricity, should be prioritised and awarded a premium in public procurement due to its beneficial impact throughout value chains. The Industrial Accelerator Act must keep decarbonisation and electrification at its core.

Cleantech deployment

Europe needs to accelerate the deployment of clean technologies to maintain its global edge. Costs fall by around 20 percent when production volumes double: low carbon technologies become cheaper, better and more efficient when demand and production volumes grow.vii In addition, European companies stand to benefit from leadership in green patents, energy efficiency, and the development of circular economy

solutions.viii However, policy clarity and targeted support are needed to de-risk early investment and make it faster for companies to bring innovations to market. The proposed European Competitiveness Fund is crucial for scaling up strategic public investment, attracting private capital, and securing leadership in tomorrow’s industries.

Mobilising investment

Public finance must be used strategically to crowd in private capital and bridge the investment gap. This requires a coherent framework that ensures fair access across Member States, while prioritising credible transition pathways. Simplified state aid rules scaling up blended finance through de-risking instruments and a swift launch of the proposed European Competitiveness Fund and Industrial Decarbonisation Bank will be essential.

Circular economy as a strategic asset

Circularity is not only about sustainability: it also strengthens resilience and productivity. Scaling up circular practices can reduce resource dependency, import dependency, spur innovation, create up to 2.5 million domestic jobs by 2030, and ensure fair access to raw materials at a competitive price. Swift implementation of the Circular Economy Act, with clear resource use reduction pathways and standards for secondary materials, will give frontrunners the certainty to expand.

Accelerating the twin digital and green transitions

The EU is a leader in values-based digital governance but must accelerate digital innovation and investment to compete globally. Digital technologies and innovation can drive energy efficiency, optimise resource use, reduce waste and accelerate renewables deployment. This means ensuring high-quality data and its efficient use, increasing investment in infrastructure, and cultivating appropriately skilled talent.

Cohesion and fairness

The transition must be inclusive. The transition is also a major opportunity for Europe’s workforce. From electricians and plumbers to installers and maintenance staff, demand for skilled workers is growing fast. With the right investment in cohesion, training, reskilling, and SME participation, this can translate into quality jobs in every region. Ensuring fair access to these opportunities is key to making the industrial transformation deliver benefits for all Europeans.

A moment for leadership

This is the EU’s opportunity to strengthen its policies and reinforce its global leadership in clean industry. With consistent action, the Clean Industrial Deal can deliver what businesses and citizens need: a competitive, resilient, and future-proof European economy.

Yours sincerely,

Signatory businesses and investors: 1. A1 Croatia 2. ACCIONA 3. Adapteo Group 4. Altum Technologies Oy 5. Aster 6. AVEVA 7. Banka BioLoo Limited 8. Battolyser Systems 9. BOSQAR INVEST (BOSQAR d.d.) 10. Bus Eireann 11. Capricorn Partners 12. CCLA Investment Management 13. Coca Cola Europacific Partners Ltd 14. cylib GmbH 15. D&D Isoltechnics 16. DPAM 17. DVOKUT-ECRO d.o.o. 18. Dynoteq Ltd. 19. Ecocem Materials Limited 20. Ecofi Investissements 21. Ecosia 22. Eco Services BV // BASF SE Antwerp 23. Electricité de France 24. Energy Dome 25. Ethos Foundation 26. Firma Electrochaea 27. Fortum Corporation 28. GET Fund 29. Goebel GmbH 30. Henkel AG 31. House of Lawyers B.V. 32. Iberdrola 33. IMBEO 34. Ingka Group 35. Ingrid Capacity 36. INSPRO 37. Inyova Impact Investing 38. IPCOM 39. Just Print d.o.o.o 40. Kingspan Group 41. KONČAR – Distribution and Special Transformers Inc. 42. Law Office Josip Konjevod 43. Leroy Merlin Polska 44. Lumar IG d.o.o. 45. Magaldi 46. Martello Partners 47. Matterwave Ventures 48. MI ECO CONSULTING LTD 49. Mirova 50. MITO Technology 51. NEW COMPONIT SRL 52. Nexi 53. Oikon Ltd. – Institute of Applied Ecology 54. Owens Corning 55. Planet A 56. Ragn-Sells Group 57. Rathbones Group Plc 58. Rega Energy Group, SA 59. Remake Society 60. Resortecs 61. Riva E Mariani Group S.r.l. 62. ROBUST d.o.o. 63. ROCKWOOL 64. Schwartmanns Maschinenbau GmbH 65. SICO d.o.o. 66. Signify 67. Span, d.d. 68. SSAB 69. TECHNO-Gewebe Vajen GmbH 70. Thermondo 71. TOMRA 72. Triglav Investments 73. Triodos Bank 74. Unilever PLC 75. Union Foam S.p.A. 76. Vatfree.com 77. Vattenfall 78. VELUX A/S 79. Vireo Ventures 80. VITA PROJEKT d.o.o. 81. Volvo Cars 82. WELYA 83. Windkraft Simonsfeld AG 84. World Fund 85. Zagrebački holding d.o.o.

Business and investor networks and associations: 86. ACT-SI 87. Airborne Wind Europe 88. BCSD Portugal 89. B Lab Global 90. Business in the Community Ireland 91. CDP 92. CEOs FOR FUTURE 93. CER Sustainable Business Network 94. CirEko 95. Cleantech for Europe 96. CLG Europe 97. Climate Group 98. Climate Leadership Coalition (CLC) 99. Climate Strategy & Partners 100. Croatian Business Council for Sustainable Development 101. Czech BCSD 102. Danish Chamber of Commerce 103. Ecopreneur.eu – The European Sustainable Business Federation 104. Efficient Buildings Europe 105. EUREC – The Association of Renewable Energy Research Centres 106. Euroheat & Power 107. European Alliance to Save Energy (EU-ASE) 108. European Industrial Hemp Association 109. European Industrial Insulation Foundation 110. FEAD – European Waste Management Association 111. Forética 112. Grüne Wirtschaft 113. Impact France 114. Haga Initiative 115. MVO Nederland 116. New European Reuse Alliance 117. Principles for Responsible Investment (UNPRI) 118. REScoop.eu 119. Skift 120. SolarPower Europe 121. Spanish Green Growth Group (Grupo Español para el Crecimiento Verde) 122. Sustainability Embassy in Romania 123. Sustainable Banking Coalition 124. The B team 125. The European Association for Storage of Energy (EASE) 126. UFE 127. We Mean Business coalition 128. WindEurope 129. Women on Wings 130. World Business Council for Sustainable Development 131. Změna k lepšímu (Change for the Better)