Resolution on energy-intensive industries

The European Parliament adopted a resolution on energy-intensive industries.

As a reminder, energy-intensive industries (EIIs) account for a significant share of the EU’s economy and play a key role in job creation. They are crucial for the EU’s strategic autonomy and competitiveness, as well as for decarbonisation, taking into account their energy footprint.

Clean energy projects

Member States are called on to accelerate permitting and licensing processes for clean energy projects, ensuring administrative capacity, and to facilitate grid connections to enable clean, on-site energy generation, especially in remote areas. Stressing that the growth of renewables and electrification will require massive investment in grids and in flexibility, storage and distribution networks, the Commission is called on to develop, beyond the concept of overriding public interest, solutions for speeding up decarbonisation projects.

Electricity market design (EMD) rules

Parliament believes that further action is needed to implement the electricity market design (EMD) rules, especially to promote power purchase agreements (PPAs) and two-way contracts for difference (CfDs) to reduce volatility and energy costs for EIIs. The Commission is called on to propose urgent measures to address current barriers to the signing of long-term agreements, especially for SMEs, using risk reduction instruments and guarantees, including public guarantee such as by the European Investment Bank (EIB). Additional ways to decouple fossil fuel prices from electricity prices should be explored including with the aim of boosting long-term contracts in line with the affordable energy action plan, and by advancing the analysis of short-term markets to 2025 with a view to considering alternative market design options.

The Commission is also called on to develop recommendations for reducing the exposure of consumers, and especially EIIs, to rising energy costs, such as by reducing taxes and levies and harmonising network charges, while ensuring public investment in grids.

Phasing out of natural gas

Members underlined the need to phase out natural gas as soon as possible. In the meantime, Member States are called on to develop measures to address gas price spikes. The Commission should also develop tools to ensure gas supply at a mitigated cost, by enabling demand aggregation, building on AggregateEU, and joint gas purchasing, while keeping decarbonisation objectives.

Funding

The resolution insisted that the upcoming MFF increase funding to support EIIs, building on the Innovation Fund and the Connecting Europe Facility – Energy or through the competitiveness fund. In addition, it stressed the need to simplify bureaucratic procedures to enhance the attractiveness of private investment and support EIIs’ transition.

Critical raw materials

Members stressed that the upcoming circular economy act should improve resource efficiency, including through better waste management of products containing critical raw materials, as well as fostering the demand and availability of secondary raw materials.

Unfair competition

The Commission is called on to find a permanent solution to address unfair competition and structural overcapacity, before the expiry of current steel safeguard measures in 2026. In this regard, it should engage with the US in relation to the announced tariffs on EU imports and avoid any harmful escalation.

Effective CBAM

Parliament stressed that an effective implementation of the carbon border adjustment mechanism (CBAM) is essential to ensure a level playing field for EU industries and prevent carbon leakage, taking into account the impact of the parallel phasing out of the ETS free allowances and the risk of increased production costs. It called on the Commission to address the risks of resource shuffling and circumvention of the CBAM.

Support for workers

Lastly, the resolution stressed the importance of a just transition to assist areas heavily reliant on EIIs, by keeping and creating quality jobs through upskilling and reskilling programmes for workers and through the effective use of regional support mechanisms, such as the Just Transition Fund and the Cohesion Fund.