Changing the Goals of the Green Transition for Industry Does Not Mean More Water in the Rhine

European Union institutions should reconsider the Green Deal and its goals for the European industry and also adjust the KPIs of that plan to the capabilities and needs of the European industry. The Green Deal is well thought out, but a balance must be found between short-term and long-term goals, especially at a time when the European industry is exposed to various previously unimaginable global risks. This is one of the conclusions of the conference “Time for Industry” held today organized by the Croatian Chamber of Economy (HGK).

The competitiveness and resilience of the EU economy largely depend on the effective functioning of the single market. It is important to identify and remove long-standing barriers for entrepreneurs. Complex administrative procedures and diversity among national regulations on goods and services represent a significant burden for companies, affecting market entry and investment decisions. It is crucial for member states to remove barriers related to the lack of coordination and harmonization – noted at the conference Vladimír Dlouhý, president of Eurochambers, who spoke on the panel about the Role of EU Associations in Advocating for Industry Interests.

– When it comes to the environment, we must put obligations into some serious context. The EU is responsible for only 9 percent of CO2 emissions in the world, and if we reduce that and close all industries that do not meet the goals of the Green Deal, there will be no more water in the Rhine nor will it start snowing more in the Alps – emphasized Dlouhý.

Rada Rodriguez, president of the European technology industry association Orgalima, spoke about EU industrial policies and stated that Europe is indeed losing not only industry if fossil fuel-dependent plants close on the Old Continent, but also the research potential for that industry.

– China, for example, does not have such strict criteria when it comes to the green transition – Rodriguez mentioned, adding that the multilateral global trading system is highly regulated, that trading partners are becoming increasingly protectionist, and access to key raw materials and components is exposed to geopolitical risks.

– Caution is needed with the increasingly present approach of ‘Europe first’. Our companies are highly export-oriented, so such an approach could burden our industry more than others – Rodriguez pointed out.

On the other hand, other conference participants are aware that Croatia has no alternative without digitalization and a response to the Green Transition. Luka Burilović, president of HGK, believes that if Croatia wants a strong and competitive industry, it must be based on green and digital transformation. This, he added, is the key to competitiveness.

– The focus of the domestic industry in the next ten years must be on strengthening competitiveness through participation in regional and European supply chains, and implementing green and digital transitions. It is important to say that entrepreneurs face the challenge of insufficient funding during the transition. National and European funding programs are therefore the most important strategic point of the transition – emphasized Burilović.