EU's Clean Industrial Deal: Good News for HVDC

The European Commission has announced its Clean Industrial Deal (CID), a comprehensive policy package aimed at decarbonizing Europe's industrial sector while maintaining competitiveness. This new initiative sets ambitious targets for emissions reduction and outlines strategies to support the EU's transition to a greener economy.

The Clean Industrial Deal includes ambitious goals such as reducing greenhouse gas emissions by 90% by 2040 compared to 1990 levels. It also emphasizes the accelerated deployment of renewable energy sources, which will require robust infrastructure to integrate these new power sources efficiently into the grid. Additionally, the deal proposes new financing mechanisms to scale up clean technologies, create markets for clean products, and strengthen emissions reporting. Furthermore, it prioritizes circularity and fosters international partnerships to ensure a collaborative approach to decarbonization.

The deal also unveils 40 different measures to speed up the green transition, including faster permits for windfarms and other infrastructure, and changing public procurement rules to favour clean tech made in Europe.

“We think that the clean industrial deal is Europe’s business plan to tackle the climate crisis,” said Teresa Ribera, the European Commission executive vice-president in charge of the green transition. Ribera, the most senior socialist in a centre-right-leaning commission, rejected criticism that the EU was reversing course. “We are not deregulating,” she said. “On the contrary: we are coming to the implementing phase.”

The commission said it would create a new industrial decarbonisation bank with €100bn (£83bn) in new and repurposed public funds, which it said could indirectly leverage €400bn from the private sector.

It outlined a bigger role for the European Investment Bank, including in the provision of guarantees to grid component manufacturers, allowing them to increase production. Experts say hundreds of billions in global investment is needed to build vast networks of electricity grids to hit climate goals.

The European Network of Transmission System Operators for Electricity (ENTSO-E) has welcomed the Clean Industrial Deal, emphasizing its potential to drive decarbonization in Europe's industrial sector. Technologies like HVDC are expected to play a key role in achieving the CID's objectives.

Some environmental groups have expressed concerns about certain aspects of the deal, such as potential simplifications to environmental regulations and delays in implementation. These issues will need to be addressed as the EU moves forward with its ambitious plans for industrial decarbonization.

As the Clean Industrial Deal unfolds over the coming months and years, the HVDC industry stands to benefit from increased investment in clean energy infrastructure and the EU's commitment to building a more sustainable and competitive industrial sector.