How can Europe reach its climate targets while maintaining competitiveness in an increasingly complex global landscape? This was the key question we addressed during our Policy Forum with Dr. Barbara Botos, Hungary’s Ambassador-at-large for Climate, as we explored the latest developments brought about by the Clean Industrial Deal and the European Competitiveness Compass.
At our February 27 Policy Forum, Dr. Botos provided an overview of the main outcomes of COP29 and their impact on European and Hungarian climate policy. The discussions covered the path from the Lisbon Strategy to the Budapest Declaration, touching upon major milestones such as the Antwerp Declaration, as well as key aspects of the Clean Industrial Deal and the European Competitiveness Compass.
The Clean Industrial Deal aims to drive decarbonization while strengthening European industries, ensuring they remain globally competitive. Meanwhile, the European Competitiveness Compass outlines a strategic roadmap to foster innovation, reduce dependencies, and create a stable investment environment.
These efforts unfold in the midst of a global net-zero industrial race, where clean-tech leadership is evolving rapidly. China has emerged as a leading force, accounting for 39% of global net-zero investment, controlling key segments of the solar and wind value chains, and planning to quadruple battery manufacturing by 2030. At the same time, the U.S. is leveraging massive investments in clean energy start-ups to establish itself as a future technological leader.
Despite these trends, the EU remains the second most attractive location for net-zero investors, ahead of the U.S. (based on 2023 data). However, sustaining this position will require targeted support and regulatory simplification to ensure that European industries can thrive in a competitive global market.
The discussions highlighted that industries require a predictable legal and economic environment to make long-term decisions. The key takeaway was clear: the only viable path forward is to accelerate clean industrial investments that reinforce both sustainability and economic resilience.
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