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1 mei 2023
Dutch presidency agenda on ensuring industrial competitiveness
Erik Janssen,Ministry of Economic AffairsThe Netherlands
Industrial competitiveness during NL PresidencyCompetitiveness Council:
-Single market (also for services)-Energy-intensive industry/steel-Circular economy-Support to SMEs-Digitalisation of industry-Better regulation-Research and Innovation-Space
1 mei 2023Ministerie van Economische Zaken2
Competitiveness mainstreaming
• Communication For a European Industrial Renaissance, calling for main-streaming of industrial competitiveness in all other policy areas and reinforcing the course to re-industrialization
• Objective of mainstreaming is to ensure that the competitiveness of the European economy is better taken into account when new European rules are being developed
• Necessity of mainstreaming competitiveness across all other configurations of the Council and discussing genuine economic challenges
• Energy, the environment, transport and the labour market are all areas influencing European competitiveness to the extent that they must be discussed by Ministers for Competitiveness
1 mei 2023Ministerie van Economische Zaken3
1 mei 2023Ministerie van Economische Zaken4
Industrial competitiveness issues• Financing gaps may limit the investments and growth of many EU
enterprises. • Better access to European investment programmes for energy-
intensive industries (Investment Plan for Europe)• Build on innovation initiatives, to create a sustainable industry
through resource and energy efficiency (Conference on Industrial Technologies, Amsterdam, June 2016).
• Comparably high electricity and gas prices vis-à-vis international competitors
• Energy efficiency improvements have not fully offset the impact of increasing prices.
• Systematic competitiveness proofing by better monitoring of the effects of policy proposals for the competitiveness of industry.
Energy and Climate during NL presidencyEnergy (Union):- Directive energy labelling- Regulation security of gas supply- Intergovernmental agreements- Market design electricity- Heating and cooling strategy- LNG and storage strategy- Regional cooperation
Climate:-Outcome of COP21 -Implementation of climate and energy package 2030
1 mei 2023Ministerie van Economische Zaken5
Paris Climate Conference COP21- In December 2015, 195 countries agreed a global action plan to
put the world on track to avoid dangerous climate change by limiting global warming to well below 2°C.
- The EU target to reduce emissions is at least 40% by 2030.- The global climate change agreement concluded in Paris laid the
basis for a more level playing field for businesses, as other parts of the world will now have to do more on climate policy.
- During our Presidency, the Netherlands will take steps towards ETS reform on the basis of the Commission’s impact analysis on the Paris Agreement. In line with the 2014 European Council Conclusions, we will work towards a well-functioning ETS that helps achieve our reduction targets while providing guarantees for business competitiveness.
1 mei 2023Ministerie van Economische Zaken6
ETS• The design of the fourth trading period for emissions trading must
strike the right balance between competitiveness and the setting of important incentives for innovations in new technologies.
• The reform of the EU’s emissions trading system must attach equal weight to aspects of climate, industrial and employment policy.
• The most carbon-efficient facilities should not have to cope with unilateral ETS-related burden. Effective protection against carbon, investment and job leakage will remain absolutely necessary after 2020 until competitors in third countries are subject to similar burdens to the industrial sector in Europe.
• An important element is the compensation for the risk of carbon leakage that should be better aligned with recent production levels and thereby better reflect the real needs of industry.
1 mei 2023Ministerie van Economische Zaken7
Refining sector developments
1 mei 2023Ministerie van Economische Zaken8
Refining sector importance for EU economy• There are refineries in 22 EU Member States• 119 thousand direct jobs• total annual turnover 686 billion euros • total refining capacity 14.7 mb/d (15.5% world), combined
throughput 11.6 mb/d in 2013 (BP, 2014)• Refined petroleum products are an important element of extra-EU
trade • Responsible for 6.6% of total CO2 emissions of EU in 2012
1 mei 2023Ministerie van Economische Zaken9
Low oil price • Due to the current low oil price the European refining sector is
currently enjoying higher margins.• Questions remain about the medium-term sustainability of low oil
prices. • World refining capacity is expected to grow by more than 1 million
barrels per day in Asia and the Middle East adding to global product supply that could potentially negatively impact European refining margins.
• Structural problems (overcapacity, high energy costs) remain.
1 mei 2023Ministerie van Economische Zaken10
EU Refining Fitness Check
1 mei 2023Ministerie van Economische Zaken11
Possible next steps- The Refining Forum should be continued- In order to safeguard a global level playing field with other global
actors, it is important to address regulatory costs that hamper competitiveness
- Ensure that the competitiveness of the European economy is better taken into account when new European rules are being developed. Refining Fitness Check is important reference study.
- It is important to implement the COP21 agreement in such a way as to allow the EU to meet its targets without this negatively impacting on competitiveness and the level playing field for European industry
- To prevent carbon leakage, the most efficient industrial installations should not be subject to undue carbon costs
1 mei 2023Ministerie van Economische Zaken12
