A new European Industrial Strategy

WWF and Carbon Market Watch argue that the EU Industrial Strategy must prioritise the decarbonisation of Energy Intensive Industries (EIIs), which account for approximately 16% of the EU's annual CO2 emissions. The authors propose ten 'asks', including the creation of an Independent Observatory to monitor progress, the implementation of emission performance standards, and the phase-out of free emission allowances in the EU Emission Trading System. They emphasize that investment should be directed toward zero-carbon technologies, specifically in the chemicals, steel, and cement sectors, while limiting Carbon Capture and Storage (CCS) to unavoidable process emissions.

• Energy Intensive Industries (EIIs) are responsible for about 16% of the EU's total annual CO2 emissions, with the chemicals, steel, and cement sectors alone representing 60% of all industrial greenhouse gas emissions.
• To achieve decarbonisation, the EU should establish an Independent Observatory with civil society representatives to set targets and monitor the progress of EIIs toward climate neutrality for 2030 and 2040.
• The authors recommend a strong public innovation policy that uses an innovation fund and Carbon Contracts for Differences (CCfDs) to support zero-carbon technologies, while explicitly excluding fossil lock-in technologies.
• The document proposes enhancing the carbon pricing framework by reforming the EU Emission Trading System (ETS), specifically by increasing the Linear Reduction Factor, strengthening the market stability reserve, and phasing out free allocation of emission allowances.
• The use of Carbon Capture and Storage (CCS) should be restricted to process emissions where no other mitigation options exist, due to high costs and environmental risks.
• A Just Transition Mechanism is requested to ensure a socially just transition, provided it excludes all fossil fuel investments, including natural gas.

APA

Carbon Market Watch (2020). A new European Industrial Strategy. https://carbonmarketwatch.org/wp-content/uploads/2020/03/a_new_european_industrial_strategy___cmw_and_wwf_10_asks.pdf

Chicago

Carbon Market Watch. A new European Industrial Strategy. 2020. https://carbonmarketwatch.org/wp-content/uploads/2020/03/a_new_european_industrial_strategy___cmw_and_wwf_10_asks.pdf.

Wikipedia

{{cite press release |author=Carbon Market Watch |title=A new European Industrial Strategy |date=March 2020 |url=https://carbonmarketwatch.org/wp-content/uploads/2020/03/a_new_european_industrial_strategy___cmw_and_wwf_10_asks.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{carbonmarketwatch2020new, author = {{Carbon Market Watch}}, title = {{A new European Industrial Strategy}}, publisher = {Carbon Market Watch}, year = {2020}, month = mar, url = {https://carbonmarketwatch.org/wp-content/uploads/2020/03/a_new_european_industrial_strategy___cmw_and_wwf_10_asks.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }