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A joint decarbonisation and competitiveness plan - Coggle Diagram
A joint decarbonisation and competitiveness plan
The root cause of high energy prices
Market design flaws
The benefits of cheap renewable energy are not reaching end-users because market rules.
Infrastructure and Taxes
Investment in grids is slow and suboptimal. Additionally, high energy taxation in Europe adds a significant cost wedge compared to other regions.
Structural disadvantage
Europe faces higher energy prices primarily due to a lack of natural resources and limited collective bargaining power.
Speculation
Financial and behavioral aspects of derivative markets have increased volatility.
The threat to Europe’s clean tech sector
Chinese dominance
China dominates global capacity due to massive subsidies and lower manufacturing costs.
Lack of strategy
The EU lacks a coordinated industrial strategy compared to the US or China.
Innovation vs. Manufacturing
Europe-> leader in clean tech innovation but fails to translate this into manufacturing leadership.
The challenges of asymmetric decarbonisation
Hard-to-abate sectors: Energy-intensive industries face massive investment needs but lack sufficient public support, putting them at a competitive disadvantage.
Transport: the sector lacks EU-level planning.
A joint plan for decarbonisation and competitiveness
Gas strategy
Reinforce joint procurement to leverage market power and limit speculative behavior in spot markets.
Accelerating deployment
Streamline permitting processes for new energy capacity and grids.
Lowering energy costs
Transfer the benefits of decarbonisation to end-users.
Industrial support
Focus support on technologies where the EU has a lead or strategic need.