Urgent action needed to save European industry

Creating market demand for cleaner industrial products is key to safeguard the future of European industry and enable clean growth. This will provide European companies with better prospects for investing in clean industrial products as well as allowing Europe to become more resilient. The need is urgent: clean investment flows are currently drying up in Europe, and some companies are already closing down. This Call for Demand Creation is supported by a broad coalition of more than 70 companies, trade and network associations and NGO’s representing thousands of businesses and citizens. It is presented to European Commissioner Wopke Hoekstra.

Ingrid Thijssen, President of the Confederation of Netherlands’ Industry and Employers (VNO-NCW) said: “The European industry is ready to produce cleaner, sustainable products but lacks sufficient market demand to invest in scaling up. Creating demand for products like cleaner-produced steel and plastics is essential to safeguard the industry, support clean growth, and secure jobs. Without urgent action, clean investments dry up and companies shut down, which is already happening. Therefore, this broad coalition calls on the European Commission to accelerate the development of a European market for sustainable products.’’

Necessary next step

“When a broad coalition like this, calls for policies that require cleaner products, you know something exceptional is happening. This is a clear call to secure the future of European industry through sustainable production. Europe is already on the right track. Continuing towards more sustainable manufacturing offers many opportunities. Demand creation is a necessary next step,” said Olof van der Gaag, Chairman of the Dutch Association for Sustainable Energy.

Nienke Homan, chairman Royal Association of the Dutch Chemical Industry  (VNCI): “The great thing is that market creation helps companies tremendously to make business cases for sustainable products and it also stimulates creativity to make those sustainable products. And that’s what we need!’’

Market demand needs to be created

Creating European market demand for cleaner industrial products is essential to keep European industry alive and thriving. At the same time, it will provide more secure supplies, jobs, as well as innovation towards sustainability. The industry is capable of producing cleaner products and is eager to do so, but the demand side requires a stimulus.

A proven formula

Demand creation has already proven itself, according to managing director Jan-Willem van den Beukel of the Dutch association for industrial energy providers and refiners VEMOBIN: “For example, gasoline suppliers are required to buy sustainable fuels for 10 percent of the volume they supply. And it works. By building on such examples and introducing lead markets across many more industrial products — such as cleaner-produced plastics, rubber, steel, building materials, and fuels — investments can resume. Demand creation through both public tenders and the private market is key.”

No time to lose

With only 15 years remaining until emission allowances for industry run out, there is no time to waste. This Coalition urges the European Commission to stimulate demand for clean production in the Clean Industrial Deal, the Circular Economy Act, and in the Industrial Decarbonization Accelerator Act. The Call for Demand Creation and its signatories can be found at  www.demandcreation.eu. The Call is open for additional signatories.