The transformation toward a climate-neutral economy can be a strong engine for economic growth. Thanks to discussions held during the Polish Presidency, emphasizing that the energy transition should not be treated separately from competitiveness issues, the European Commission has introduced the Competitiveness Compass and the Clean Industrial Deal initiative. Both documents propose concrete solutions on how to combine these two processes. Crucially, as highlighted particularly by business, lowering energy prices is key.
“I believe it is possible to combine efforts to tackle the climate crisis with safeguarding our competitiveness. Europe does not have its own fossil fuels; therefore, in the long run, it is in our interest not to spend money buying those fuels from third countries but to spend it internally within the EU. We are not discussing changing the 2050 target but rather how to achieve it,” said Ignacy Niemczycki, Secretary of State in the Chancellery of the Prime Minister, in an interview with Newseria.
According to the European Commission’s assessment of national energy and climate plans, EU member states have significantly closed the gap in meeting energy and climate goals and are currently on track to reduce net greenhouse gas emissions by about 54% by 2030 compared to 1990 levels, provided they fully implement existing and planned national and EU measures. The EU’s 2030 target also includes achieving at least a 42.5% share of renewable energy sources.
“As for the pace of energy transition in the European Union, I think the Union is not only doing enough but is moving very fast. Poland, during its Presidency of the Council of the European Union, advocates focusing on both competitiveness and security. This means that while implementing the transition, we must ensure not to harm the competitiveness of our economies and focus on applying what we already have — in Poland’s context, the EU rules and regulations adopted in recent years,” emphasized Krzysztof Bolesta, Secretary of State at the Ministry of Climate and Environment.
Data from the European Investment Bank show that in 2024, 61% of firms in the EU invested in fighting climate change, compared to 56% in 2023. One in four companies (27%) sees the shift to a low-emission economy as an opportunity within the next five years.
Supporting business is also crucial for the success of the energy transition.
“Business plays a key role in the energy transition at national, European, and global levels. On the one hand, companies supply products and technologies that enable and accelerate the transition. On the other hand, they contribute to reducing energy consumption and greenhouse gas emissions, whether by improving the energy efficiency of production processes, thermomodernizing buildings, gradually switching from fossil fuels to renewable energy, or signing contracts with suppliers for low-carbon-footprint goods and services,” explained Aleksandra Stępniak, Public Affairs Manager at VELUX Poland.
The Draghi report points to the risk of reduced competitiveness in Europe due to rising energy prices and negative impacts on investment and production. Regulatory efforts therefore focus on mitigating this risk.
“The scale of challenges for companies regarding the energy transition depends on their activity because energy-intensive sectors face different challenges than services. Manufacturing companies using large amounts of energy in production must find the right energy mix to reduce emissions while maintaining production processes. Other companies face a greater challenge in transforming the entire value chain,” added Aleksandra Stępniak.
“I feel that the Polish Presidency is putting pressure on European institutions to truly pay attention to the competitiveness of the European economy. Therefore, the Commission proposed the Competitiveness Compass and launched the Clean Industrial Deal. Today, we must primarily focus on lowering energy prices. This is absolutely critical for enabling the fight against the climate crisis,” assessed Ignacy Niemczycki.
The Competitiveness Compass, adopted in January, provides a coherent framework for member states so that all EU policies work together to enhance the EU’s economic position. It identifies key areas needing change and proposes concrete initiatives to improve Europe’s competitiveness. It responds to challenges such as slowing productivity growth. The Compass also includes actions to reduce Europe’s dependence on external suppliers of critical raw materials and technologies through supply chain diversification and lowering dependence on single suppliers in key strategic sectors. A platform for joint procurement of critical raw materials is also planned.
The Clean Industrial Deal initiative aims to make the EU an attractive location for manufacturing, including energy-intensive sectors, by providing affordable electricity and investing in energy infrastructure expansion. The Affordable Energy Action Plan aims to lower energy costs in Europe.
“I also want to highlight the planned strengthening of the CBAM mechanism, which can level the playing field between producers inside and outside Europe. This will ensure fair competition within the EU itself. I also note that the European Commission, again thanks to the Polish Presidency, proposed a total ban on fossil fuel imports from Russia. I believe this is absolutely key in our geopolitical situation,” stressed the Secretary of State in the Chancellery of the Prime Minister.
The EU’s REPowerEU action plan, presented by the European Commission, aims to ensure full energy independence from Russia. Despite sanctions following Russia’s invasion of Ukraine, EU gas imports from Russia rebounded in 2024. Hence the recently unveiled roadmap for completely phasing out fossil fuels from Russia.
“We, as Europe, must do everything to improve all aspects of security and become as energy independent as possible. We still import many energy carriers. Poland no longer imports any from Russia, but Europe still imports coal, gas, and oil. Energy independence — transitioning to green technologies and green energy produced in the EU — is not only an economic issue but primarily a security improvement matter,” emphasized Krzysztof Bolesta.
Experts discussed the EU energy transition and initiatives to accelerate the process while linking it to competitiveness at the “EU Economic Security” conference organized by the Union of Employers – Manufacturers of Construction Materials and partners, under the patronage of the Polish Presidency of the Council of the EU.
