The industrial strategy is an important initiative of the Austrian federal government.

Key points and important measures were developed in the CEOs FOR FUTURE Climate Business Circle.

"Decarbonization is not just a competitive opportunity, but a competitive necessity. The dynamics of international competition are intense. We must not constantly question fundamental issues (such as climate targets) that companies have already adapted to," emphasizes Christiane Brunner, board member of CEOs FOR FUTURE and initiator of the Climate Business Circle.

In a background discussion on the “Industrial Strategy,” CEOs of member companies explained what this means for their company:

Haimo Primas, CEO of Holcim Austria and Holcim Cement CE Holding: "Decarbonization is a matter of survival for the cement industry. Either the CO2 goes out, or the industry leaves Austria. Our Group will invest where we find favorable conditions for decarbonization."

Karl Sagmeister, Schneider Electric Country President Austria: "If subsidies are not designed reliably and switched on and off, market distortions will occur" (see PV, e-mobility). Our investments in Austria require clarity regarding objectives and framework conditions. Changes to public procedures are needed; the best-bid principle must be consistently applied instead of the lowest-bid principle."

The number one location factor for companies in all sectors is having sufficient renewable energy available at competitive prices.

Gerhard Christiner, CEO of APG – Austrian Power Grid AG: "There's no question that we will need even more renewables. However, this becomes questionable if we cannot supply renewable electricity to industrial customers. Because we have not succeeded in accelerating the expansion of the electricity grid accordingly, we all, including industry, are paying this 'Austrian surcharge' (costs incurred for balancing measures in the energy system due to grid bottlenecks).

“We support an industrial strategy with a clear vision up to 2050, embedded in the European Union’s objectives, which focus on CO2 reduction as a driver of growth,” Christiane Brunner concludes.

Guidelines for the industrial strategy

1. Overall vision for the 2050 location

Time horizon beyond 2035: Industry needs a vision and strategy through 2050. Many investment decisions that need to be made today have long-term implications. An exclusive focus on 2035 is therefore too short-sighted. Targets must be aligned with the objectives of the EU's Clean Industrial Deal and the 2040 climate neutrality target set out in the government's program.

Vision: The goal of the industrial strategy must be a strategy for the future. Those who insist on the status quo will lose in international competition. Therefore, we want to capitalize on the opportunities offered by transformation. Our vision is that Austria 2050 will be a climate-neutral, highly innovative industrial location characterized by technological leadership, sustainable value chains, a high quality of life, prosperity, and an attractive working environment. We are not only globally competitive but also positioned as a pioneer of decarbonization and resilient to geopolitical crises. Austria is a strong partner in positioning Europe as a location and a spotlight for international cooperation.

Commitment: Decisions regarding specific framework conditions and other measures must be made in line with the strategy and objectives. Debates can no longer be conducted based on buzzwords, but must focus on finding concrete solutions. A comprehensive, cross-party and cross-stakeholder commitment to transformation is needed.

2. Clear signals & framework conditions

Clear goals, signals, and framework conditions are the foundation for tomorrow's competitiveness, resilience, jobs, exports, and innovations. With this clarity, companies in Austria will invest in their (transformation) projects.

3. Strong location Austria only in strong location Europe

Alignment of the industrial strategy in line with the objectives and strategic decisions of the EU: Adherence to and further pursuit of EU objectives – such as the Clean Industrial Deal and the phase-out of CO2 – defined as a driver of growth.

4. Clear international positioning: Decarbonization as a competitive opportunity and necessity. "Use it or lose it": Positioning as a pioneer of decarbonization opens up export and innovation opportunities. Investment power – pioneering power – expanding technological leadership in environmental technologies, the energy transition, and the circular economy.
5. Energy as the number 1 location factor

Energy system vision: Security of supply, development of industry in Austria and achievement of existing climate targets are possible (measures below).

Necessary measures

1. Creating planning security: clear goals, signals and framework conditions
2. Comprehensive plan for the decarbonization of industry: rapid implementation of decarbonization projects to ensure international competition and the implementation of the CCUS strategy (for unavoidable emissions)
3. Massive investments in infrastructure: for energy (electricity and heat, renewable gases and hydrogen), CO2 and mobility (Infrastructure Target Vision 2040)
4. Strengthening security of supply and rapid implementation of the energy transition: reducing dependencies and holistic system planning
5. Sustainable energy market reform and tariff design: to benefit from the cost advantages of the energy transition
6. Create a financing framework for decarbonization projects: Clarity regarding price signals (such as a sufficiently high carbon price); targeted and stable use of subsidies for decarbonization technologies; earmarking ETS revenues for decarbonization projects;
7. Leverage potential and strengths: Establish lead markets // Support the circular economy, sustainable construction, and regional products and production // Strategic partnerships to stabilize supply chains // Build and leverage know-how and technology transfer -> Leverage first-mover advantages
8. Optimization of the regulatory environment: reducing high bureaucratic burdens, nationwide uniform standards, rapid approval procedures (EABG decision)
9. Digitalization: Promoting European cloud infrastructures, AI platforms and cybersecurity
10. Training and mobilization measures for skilled workers: in future-oriented technical professions, especially for women and mobilization of the Gen Z workforce