EU industrial competitiveness package shows gap between stated vision and action plan
Brussels, 26 February 2025 – European Commission emphasis on competitiveness and simplification shows it has heard industry calls but falls short of proposing the innovative, pragmatic and technology neutral regulatory framework needed in the current context.
“There is still a gap between the Commission’s ambitious stated intentions and the proposed approach. We can’t fix today’s problems with yesterday’s solutions. Without a real mindset shift to technology neutrality, simplification and pragmatism translated into coherent policy action across the board, Europe won’t attract enough investments or secure the energy it needs to compete on the global stage” said François-Régis Mouton, Managing Director, IOGP Europe.
The proposed Action Plan for Affordable Energy doubles down on renewable electrification backed by storage, grid expansion and demand-side measures, but falls short of incentivizing and rewarding supply-side flexibility and capacity additions from other reliable sources of generation. It is unclear how continuing this approach is expected to make energy competitive.
Oil and gas account for around 60% of EU energy mix, yet the Plan misses the opportunity to encourage the production of Europe’s domestic oil and gas resources and help reduce carbon intensity, increase strategic autonomy and generate government revenues in the process.
The Commission’s acknowledgement of the need for well-functioning gas markets and for long-term natural gas contracts must now be accompanied by coherent policy change across the board. Without stronger demand signals and the removal of import barriers in legislation such as the Methane Regulation (through future Omnibuses) or Corporate Sustainability Due Diligence Directive, European buyers and global suppliers will find concluding long-term supply agreements difficult.
In the Clean Industrial Deal, we commend the Commission for its effort to strengthen funding and de-risking of decarbonization projects by introducing new IPCEIs for industrial decarbonization and setting up an industrial decarbonization bank using carbon emission reduction as a technology neutral metric. These efforts must be complemented with additional funded and used to kickstart the CCS value chain and we hope this materializes in the future Competitiveness Fund.
We welcome the commitment to a clear, pragmatic and fast adoption of the low-carbon hydrogen Delegated Act, and the intention to promote low-carbon hydrogen. To attract the necessary investments, both renewable and low-carbon production technologies need equal treatment with regard to State Aid.
We support the Commission's plan to reduce reporting obligations through the Omnibus, including limiting due diligence reporting to direct business partners. Removing sector-specific standards will also ease reporting burdens and enhance Europe's investment appeal.
We look forward to working with EU institutions to swiftly turn this vision into impactful action.
About IOGP Europe
IOGP Europe is the European and advocacy arm of the International Association of Oil & Gas
Producers (IOGP), the leading voice of the global oil and gas industry and operational
excellence center in Safety, Environment and Engineering.
We represent around 30 energy companies accounting for 70% of EU oil & gas production.
We support policymakers in crafting impactful and inclusive policies that drive prosperity for
Europe's businesses and citizens.
Contact
Nareg Terzian
Head of Strategy and Communications
Email: gro.p1742553853goi@z1742553853tn1742553853
www.iogpeurope.org
