Green Growth Summit 2024: A new cycle for climate and competitiveness – Putting the EU on the road to success

Policymakers and businesses discussed how to align the Clean Industrial Deal with the objectives of the EU Green Deal, to drive competitiveness and innovation while setting the course for a robust 2040 climate target.

On 16 December 2024, business leaders, Environment and Climate Ministers from EU Member States and representatives from the EU institutions  gathered in Brussels for the annual Green Growth Summit. This flagship event aims to foster dialogue on Europe’s climate, sustainability and economic issues and related policies while addressing the opportunities of the green transition. With the Clean Industrial Deal and the European Green Deal at the centre of discussions, the Summit emphasised the need for cohesive strategies that integrate sustainability with economic resilience and bring together business and political action. Participants explored pathways to accelerate the transition to a climate-neutral economy while strengthening Europe’s competitiveness on the global stage.

A core focus of the Summit was the EU’s 2040 greenhouse gas emissions reduction target. Achieving at least a 90% reduction by 2040 was identified by some speakers as both a necessity and an opportunity to align climate action with economic growth. They highlighted the importance of combining clear, science-based targets with industrial policies to ensure a just and effective transition.

The discussion also touched upon the role of circular economy and energy efficiency in driving sustainable growth, and the importance of public-private collaboration in achieving shared objectives. The Summit highlighted that while significant progress has been made, the window for impactful action is narrowing, making policy and investment predictability more crucial than ever, including to stimulate business action.

Main takeaways from the Summit:

• Europe needs a robust 2040 greenhouse gas emissions reduction target. A robust target, which according to the business leaders present should be a 90% emissions reduction, is both feasible and aligned with scientific advice. The sooner action is taken, the greater the benefits in preventing cumulative emissions impacts and unlocking economic and competitiveness opportunities. Such a target is critical for maintaining Europe’s leadership in climate action and ensuring fair contributions globally.
• Energy efficiency, energy security circular economy are key to competitiveness. A shift from linear economic models to circular ones is essential for boosting efficiency and reducing resource dependency. Energy efficiency measures offer dual benefits: reducing emissions and strengthening economic resilience. These measures create jobs, improve energy security, and support long-term competitiveness. There also need to be a clear link between energy security, cleantech and competitiveness.
• Policy stability is critical for accelerating investments. Predictable, long-term policies are necessary to foster innovation and provide businesses with the confidence to invest in transformative projects. Stability in regulatory frameworks is key to enabling industries to align with climate goals while maintaining their competitiveness.
• Phasing out fossil fuels remains a priority. Europe must accelerate its transition away from fossil fuels and scale up renewable energy projects. This shift will reduce dependencies on volatile energy markets, enhance energy security, and position the EU as a global leader in clean energy technologies.
• Public and private collaboration is key to success. The green transition requires strong partnerships between governments and businesses. This collaboration can drive innovation, de-risk investments, and ensure that climate policies align with broader economic and social goals.

Statements from business leaders and policymakers

1. The EU needs an ambitious 2040 greenhouse gas emissions reduction target

According to multiple speakers, including Jes Munk Hansen, Chief Executive Officer, ROCKWOOL, and Karen Pflug, Chief Sustainability Officer, IKEA Retail (Ingka Group), the transition to a climate-neutral Europe requires robust targets and predictable policies. Hansen stated, "I see a clear link between energy efficiency and competitiveness" while Pflug emphasized, "We signed the business and investor letter on the EU’s 2040 climate target (calling for a target of at least 90%) because we see that being climate smart is being business smart. It's also about being resource smart."

Jan Dusík, Deputy Director-General, DG CLIMA, European Commission, stated the need for leadership, urging Europe to maintain its momentum in climate reforms and set an example for other regions, “We as Europe want to be progressing with reforms and convince other players to close the gap for the 1.5˚C.”

Several speakers noted that an ambitious 2040 target aligns with scientific recommendations and is critical to avoiding severe economic and environmental costs. Alice K. Steenland, Chief of Strategy, Sustainability and Marketing, Signify, stated “We need stability and a 90% climate target to follow the science. Now is not the time to roll back.”

2. Phasing out fossil fuels and transitioning to clean energy

The Summit underlined the importance of reducing dependence on fossil fuels and scaling renewable energy projects. Eamon Ryan, Minister for the Environment and Climate, Ireland, noted, "We’re on a war against climate change, we win battles and we lose battles, but if every lost battle is a defeat then you lose the public support."

Carine de Boissezon, Chief Impact Officer, EDF, highlighted that electrification is a pivotal step in this transition, calling for bold policies to accelerate investment in renewable energy infrastructure. Speakers emphasized that phasing out fossil fuels would not only address the climate crisis but also enhance energy security and reduce geopolitical risks associated with energy imports.

3. Supporting businesses to scale action

Speakers called for predictable frameworks and long-term strategies to enable businesses to lead in decarbonisation. Līga Kurevska, State Secretary for Climate and Energy, Latvia, remarked, "We are accelerating the transition from a dependent, fossil-based economy towards an autonomous, renewable-based economy. When we try to accelerate this transition, the costs for some can increase. But the costs of not acting at all are even higher."

Predictability in policy and regulation emerged as a recurring theme, with participants stressing that businesses require stable frameworks to make transformative investments. Karen Pflug emphasised the role of private sector innovation in driving change and called for enhanced public-private collaboration to unlock investment in green technologies.

4. Circular economy, energy efficiency and energy security as pillars of competitiveness

The EU’s potential as a global leader in circularity and energy efficiency was repeatedly highlighted. "The best energy is the energy you don’t use," said Karen Pflug, while Lars Petersson, Chief Executive Officer, VELUX Group, emphasized, "Speaking as an engineer as well as a CEO, this is a problem we can solve, if we allow ourselves to solve it."

Energy efficiency was presented as a dual opportunity for reducing emissions and enhancing economic resilience. Participants pointed to successful case studies, such as the deployment of ultra-efficient LED lighting, which could significantly reduce energy demand across Europe. Alice K. Steenland noted that energy efficiency investments would generate local jobs, improve infrastructure, and position Europe as a leader in sustainable innovation.

Tore O. Sandvik, Norwegian Minister of Climate and Environment, underscored the necessity of shifting towards a circular economy, stating, "There’s the need to shift from a linear to a circular economy, which would not only be more efficient but also enhance competitiveness." He also emphasized the importance of transforming supply chains, adding, "We need to prioritize strategic autonomy while maintaining global competitiveness."

Krzysztof Bolesta, Polish Deputy Minister of Climate and Energy, emphasized that competitiveness will be a crucial factor in the transition. He stated, "We need to incorporate energy security into discussions of competitiveness." He also noted that cheap energy remains a key component of economic advantage but warned that much of the cleantech industry is reliant on China, posing a risk to Europe’s strategic autonomy. "Linking energy security, competitiveness, and cleantech is essential for ensuring long-term economic stability," he added.

5. Aligning industrial and climate policies

"COP made it clear that behind climate policies, there are industrial policies and a global race to develop clean technologies," said Gonzalo Sáenz de Miera, CLG Europe Chair & Director of Climate Change, Iberdrola. Industrial policy must align with climate goals to secure Europe’s competitive edge and strategic autonomy.

Agnes Pannier-Runacher, Minister for the Ecological Transition, Energy, Climate and Risk Prevention, France, emphasised the importance of creating clear targets and providing businesses with the flexibility to determine how best to achieve them. She affirmed,“the role of policy makers should be to make the targets clear and give predictability on the objectives, but to leave it to stakeholders to decide on the how to reach them.”

Several speakers called for harmonised regulations across Member States to facilitate cross-border cooperation and innovation.

The Path Forward

Uroš Vajgl, State Secretary for Environmental and Climate Policy, Slovenia concluded, "There is no contradiction between the green transition and competitiveness; we will be more competitive if we produce and consume more sustainably." Europe must now leverage its leadership position to accelerate the green transition, foster innovation, and build a resilient economy for future generations.

The Green Growth Summit 2024 reaffirmed the necessity of collaboration between policymakers and businesses to achieve ambitious climate and competitiveness goals, setting a decisive course for a prosperous and sustainable Europe. By prioritising stability, fostering innovation, and emphasising the economic benefits of climate action, Europe is poised to lead the global transition towards a greener, more competitive future. The urgency of these efforts cannot be overstated, and the time to act is now.