A European industrial development policy for prosperity and zero emissions
Research output: Chapter in Book/Report/Conference proceeding › Article in proceedings › Research › peer-review
The objective of this paper is to outline and discuss the key elements of an EU industrial development policy consistent with the Paris Agreement. We also assess the current EU Industrial Strategy proposal against these elements. The “well below 2 °C” target sets a clear limit for future global greenhouse gas emissions and thus strict boundaries for the development of future material demand, industrial processes and the sourcing of feedstock; industry must evolve to zero emissions or pay for expensive negative emissions elsewhere. An industrial policy for transformation to net-zero emissions must include attention to directed technological and economic structural change, the demand for emissions intensive products and services, energy and material efficiency, circular economy, electrification and other net-zero fuel switching, and carbon capture and use or storage (CCUS). It may also entail geographical relocation of key basic materials industries to regions endowed with renewable energy. In this paper we review recent trends in green industrial policy. We find that it has generally focused on promoting new green technologies (e.g., PVs, batteries, fuel cells and biorefineries) rather than on decarbonizing the emissions intensive basic materials industries, or strategies for handling the phase-out or repurposing of sunset industries (e.g., replacing fossil fuel feedstocks for chemicals). Based on knowledge about industry and potential mitigation options, and insights from economics, governance and innovation studies, we propose a framework for the purpose of developing and evaluating industrial policy for net-zero emissions. This framework recognizes the need for: directionality; innovation; creating lead markets for green materials and reshaping existing markets; building capacity for governance and change; coherence with the international climate policy regime; and finally the need for a just transition. We find the announced EU Industrial Strategy to be strong on most elements, but weak on transition governance approaches, the need for capacity building, and creating lead markets.
Original language | English |
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Title of host publication | eceee Industrial Summer Study : Decarbonise Industry! 2020 - Proceedings |
Number of pages | 10 |
Publisher | European Council for an Energy Efficient Economy |
Publication date | 2020 |
Pages | 457-466 |
ISBN (Electronic) | 9789198387865 |
Publication status | Published - 2020 |
Externally published | Yes |
Event | 2020 eceee Industrial Summer Study on Industrial Efficiency: Decarbonise Industry! - Virtual, Online, Sweden Duration: 14 Sep 2020 → 17 Sep 2020 |
Conference
Conference | 2020 eceee Industrial Summer Study on Industrial Efficiency: Decarbonise Industry! |
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Land | Sweden |
By | Virtual, Online |
Periode | 14/09/2020 → 17/09/2020 |
Series | Eceee Industrial Summer Study Proceedings |
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Volume | 2020-September |
ISSN | 2001-7979 |
Bibliographical note
Funding Information:
We thank the European Commission for support under contract No. 730053 for the H2020 REINVENT project and the Swedish Energy Agency for project Nr. 38271-1, Green transition and co-evolution of industry and the energy system (GIST).
Publisher Copyright:
© 2020 European Council for an Energy Efficient Economy. All rights reserved.
- decarbonisation, energy intensive industry, governance, industrial policy
Research areas
ID: 325371876