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EU Competitiveness Compass Sets Strategic Roadmap to Balance Business Growth with Climate Ambitions

31st January 2025

As a first act of its new mandate, the European Commission, on January 29, unveiled its Competitiveness Compass for the EU, outlining a strategic framework and priorities for boosting the EU’s economic strength, resilience and long-term prosperity. 

This initiative puts competitiveness in focus for EU policymaking over the next five years. It aims to ensure Europe remains a global leader in innovation, investment, and manufacturing while meeting its ambitious climate targets. 

The Competitiveness Compass translates the key findings of the Draghi Report into concrete actions, identifying innovation, decarbonisation and security as three core priorities.  

In particular, the second pillar of the Competitiveness Compass focuses on developing a joint roadmap for decarbonisation and competitiveness based on a technology neutral approach, as well as the integration of decarbonisation, industrial, competition, economic and trade policies. 

As part of this agenda, the European Commission recognises the need for a broad set of actions to advance the deployment of carbon management solutions in the EU, including: 

  • Boosting the demand for low-carbon products; 
  • Putting forward a sustainable transport investment plan able to de-risk investment and accelerate the production and distribution of renewable and low-carbon transport fuels; 
  • Accelerating investment in electricity, hydrogen and carbon dioxide transport networks as well as storage systems; 
  • Developing incentives to build a business case for permanent carbon removals to compensate for residual emissions from hard-to-abate sectors. 

To support the Competitiveness Compass, the European Commission is currently preparing a Clean Industrial Deal, which aims to advance EU decarbonisation efforts and clean tech solutions via a competitiveness-driven approach. Among other measures under consideration is also an Industrial Decarbonisation Accelerator Act designed to extend accelerated permitting to sectors in transition, as well as tailor-made action plans for energy intensive sectors that are currently supporting the European manufacturing system. 

 

Read more here. 

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