We have very little time to stop the climate crisis from turning into a climate catastrophe, which would have severe consequences for the economy and for society.
For instance, the European Commission estimates that climate-related extreme events increased between 1980 and 2022, causing 220,000 deaths and €650 billion in economic losses over that period in the EU, of which about €179 billion were in the last five years. Without timely intervention, such impacts are set to intensify.
Embracing rapid and effective decarbonisation represents an opportunity for EU industry to remain competitive globally and futureproof itself against climate risks, while ensuring that the EU reaches its climate targets. This means that inaction or hitting ‘pause’ is no longer an option, both for the sake of the climate and the economy.
The European Commission’s strategy for a new industrial policy focuses on how to financially support both the decarbonisation of energy-intensive industries and how to scale up green technologies (such as electrolysers for renewable hydrogen production and heat pumps) in Europe. With the EU debating its 2040 climate target and an upcoming Clean Industrial Deal, now is the right time to look closely at the highly polluting sectors under the EU Emissions Trading System (ETS), such as steel, cement and chemicals. To facilitate informed decision-making, it is important to assess the climate performance of companies in these sectors and how much state support they have received in recent years through both EU ETS free allowances and the Innovation Fund. This report sets out to provide this analysis.
