Christiane Brunner, CEOs for Future Climate Business Circle, and Haimo Primas, Holcim Austria: Show strength – stay the course.
European industry is undoubtedly in a difficult situation – for various reasons: the geopolitical situation, the tariff dispute with the US, and the loss of (supposedly) cheap energy imports. At the same time, industry is under pressure to transform. "That's precisely why we need a comprehensive industrial strategy and measures that contribute to this strategy and don't simply postpone problems," says Christiane Brunner, board member of CEOs FOR FUTURE and initiator of the Climate Business Circle. The time for decarbonization by 2050 is already very short, especially for industries that are hard to beat. "This is evident in the urgent investment decisions companies are making and their call for clarity regarding these investments in order to remain competitive in the international race for technological leadership and location decisions. We need a strategy and framework for the future – not a back-and-forth," Brunner continues.
Delays in decarbonization measures – especially in non-ETS sectors – have cost industry significant time and CO2 budget. Against this backdrop, the phasing out of free allowances, from 2026 to 2034, presents a challenging situation. Haimo Primas, CEO of Hoclim Austria, commented: “For the period after 2034, industry definitely needs solutions. We therefore advocate for an industrial strategy that extends beyond the 2035 horizon. What industry needs are clear goals, signals, and frameworks – no stop-and-go or even going backwards.” He emphasized the importance of staying the course, particularly with regard to international competition. “Those who cling to the status quo will lose out in international competition. Under no circumstances should the signal be sent that we can postpone the transformation – that would harm both our competitiveness and the climate. We cannot sit back, but must boldly move forward – in industry and in politics,” Primas concluded.
With regard to emission certificates, the most important measure in Austria would be to use the funds that industry already pays for certificates for industrial transformation. Currently, these funds end up in the general budget. "Industry already pays for emission certificates. Enabling these funds for industrial transformation projects would be a major lever for decarbonization and the greatest support for industry," says Primas.
Key points of the Climate Business Circle for the Austrian industrial strategy:
- Establishing planning certainty: Clear goals, signals and framework conditions
- Overall plan for the decarbonization of industry: rapid implementation of decarbonization projects to remain competitive internationally and implementation of the CCUS strategy (for unavoidable emissions)
- Massive investments in infrastructure: for energy (electricity and heat, renewable gases and hydrogen), CO2 and mobility (infrastructure target image 2040)
- Strengthening security of supply and rapid implementation of the energy transition: systemic planning and reduction of dependencies
- Sustainable energy market reform and tariff design: to benefit from the cost advantages of the energy transition
- Create a financing framework for decarbonization projects: Clarity regarding price signals (such as a sufficiently high CO2 price); targeted and stable use of funding for decarbonization technologies; earmarking of ETS revenues for decarbonization projects;
- Leveraging potential and strengths: Establishing lead markets // Supporting the circular economy, sustainable construction, and regional products and production // Strategic partnerships to stabilize supply chains // Building and utilizing know-how and technology transfer -> Leveraging first-mover advantages
- Optimizing the regulatory environment: Reducing high levels of bureaucracy, establishing uniform standards nationwide, and implementing rapid approval procedures (EABG resolution)
- Digitalization: Promoting European cloud infrastructures, AI platforms and cybersecurity
- Training and mobilization measures for skilled workers in future-oriented technical professions, especially for women, and mobilization of the workforce of Gen Z.