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On 28 January, CLG Europe was delighted to welcome the group of Business Networks for a Climate Neutral Europe in Brussels.
These business networks from across Europe work together to achieve a climate neutral, nature-positive, and socially inclusive green transition. They met with Members of the European Parliament at a roundtable and dinner to discuss how the EU can achieve the transition towards a competitive and climate neutral EU and ensure that the transition benefits society and citizens. The discussion reflected on upcoming political developments including the Clean Industry Deal.
Speakers agreed that competitiveness and decarbonisation are two sides of the same coin. Making the business case clear, the discussion highlighted opportunities to achieve these objectives in a way that benefits climate and the EU’s economy. These include scaling up electrification, stimulating markets for carbon neutral materials like green steel, seizing the low hanging fruits of energy efficiency, and taping into the benefits of circular economy including in terms of resource efficiency and security. Speakers identified a series of enablers including public procurement, improving the single market for energy, climate neutral and circular materials, standards, unlocking private investments and stimulating business models for nature.
Participants list throughout the day:
Policymakers
- Dan Barna, MEP, Renew, European Parliament
- Pascal Canfin, MEP, Renew, European Parliament
- Aurel Ciobanu-Dordea, Director of Circular Economy, Directorate-General for Environment
- Pär Holmgren, MEP, Greens/EFA, European Parliament
- Sara Matthieu, MEP, Greens/EFA, European Parliament
- Victor Negrescu, Vice-President, S&D, European Parliament
- Marzena Rogalska, Principal Advisor – Industrial Decarbonisation, Directorate-General for Climate Action
- Bruno Tobback, MEP, S&D, European Parliament
- Ana Vasconcelos, MEP, Renew, European Parliament
- Vlad Voiculescu, MEP, Renew, European Parliament
National Business Networks (and partners) Representatives
- Žiga Čebulj, Advisor for Sustainable Business Models and Strategies, CER Sustainable Business Network (Slovenia)
- Jakop Dalunde, Secretary General, Haga Initiative (Sweden)
- Kirsti Elsfjordstrand, Member; VP and Head of Office, Skift; Statkraft Brussels (Norway; Belgium)
- Karen Galle, Communication & Advocacy Manager, The Shift (Belgium)
- Francesco Giannelli, Project Manager, Corporate Leaders Group Europe (Belgium)
- Dominic Gogol, Deputy Director, We Mean Business Coalition (United Kingdom)
- Oana Grosanu, Executive Director, Sustainability Embassy in Romania (Romania)
- Torjus Kleiven Kandal, Head of Membership and Public Affairs, Skift (Norway)
- Tuuli Kaskinen, CEO, Climate Leadership Coalition (Finland)
- Jeroen Langerock, Community Manager, The Shift (Belgium)
- Miguel Muñoz Rodriguez, Head of Climate Policies Area, Spanish Green Growth Group (Spain)
- Romain Pardo, Senior Programme Manager, Corporate Leaders Group Europe (Belgium)
- Emma Poelmann, Program Manager DSGC & Strategy and Consulting Analyst, Dutch Sustainable Growth Coalition; Accenture (Netherlands)
- Martin Porter, Executive Chair, CISL Europe (Belgium)
- Senni Raunio, Specialist in Member Experience and Project Development, Climate Leadership Coalition (Finland)
- Johannes Schroeten, Senior Referent Politik, Stiftung KlimaWirtschaft (Germany)
- Ana Struna Bregar, CEO, CER Sustainable Business Network (Slovenia)
- Sophie Tripier, Manager, EU Reporting, BSR (France)
- Tim Van den Bossche, Chairman; CEO EMEA, The Shift; Carmeuse (Belgium)
- Jeanine Weerts, ESG Consultant, Dutch Sustainable Growth Coalition; Accenture (Netherlands)
European Parliament roundtable, hosted by VP Victor Negrescu
1. Welcome and Introduction
Participants opened the event by setting out the main objectives:
- Linking Competitiveness and Climate Neutrality
Speakers stressed that discussions around the EU’s industrial competitiveness must keep sustainability at the forefront. - Ensuring a Just Transition
Emphasis was placed on making climate targets and policies tangible for citizens and businesses, particularly small and medium-sized enterprises (SMEs). Fair distribution of benefits and costs is seen as critical, to ensure no one is left behind. - Building Broader Coalitions
Collaboration with local authorities, consumer groups, SMEs, and other stakeholders was highlighted as essential to maintaining momentum. At the same time, participants noted the importance of bringing up arguments that would bring broad political support to keep sustainability up in the agenda. Finally, the cost of inaction was also raised as a point for stakeholders to keep on pushing forward.
2. Win-Win: Decarbonising and Strengthening Industry Competitiveness
- Cleantech and Competitiveness
Speakers explained how clean technologies present a significant growth opportunity for European industry. Businesses noted that combining decarbonisation with profitability depends on clear, consistent regulatory signals and stable frameworks that allow companies to plan investments. - Energy Prices and Infrastructure
High energy prices were identified as a core challenge. Participants felt that boosting renewable energy capacity and expanding infrastructure—especially grids—could reduce costs in the long term. Ensuring these costs are fairly distributed (rather than simply passed on to end-users) was considered a priority. Increase EU-level support and coordination for modernizing power grids, ensuring high penetration of renewables and reducing bottlenecks. - Market Creation and Regulation
It was also suggested to use public procurement and standards to create markets for low-carbon materials and products. While participants called for “smarter regulation” to remove contradictions and streamline processes, they also cautioned against any rollback or dilution of existing environmental standards and deregulation. - Carbon Pricing
Businesses acknowledged that the EU Emissions Trading System (ETS) remains a cornerstone of European climate policy and stressed the need to keep strengthening carbon pricing instruments. They also stressed international collaboration (e.g., through the WTO or the World Bank) to promote a level global playing field and extend carbon pricing beyond Europe.
3. The Role of Energy in Achieving Climate Goals
- Decarbonising Energy Systems
Many participants agreed that accelerating renewable deployment is central to both climate and energy security goals. Calls were made for enhanced infrastructure investments (e.g., interconnectors, distribution networks) and a supportive fiscal environment that phases out fossil fuels in favour of cleaner alternatives. - SME Challenges and Finance
There was specific concerns around SMEs, which often face barriers in accessing finance for energy-efficiency projects. Simplifying administrative procedures, improving skill sets, and providing clearer support mechanisms were suggested as ways to unlock significant potential in this sector.
Some of the solutions include: Creating dedicated funding lines and streamlined processes for SMEs to invest in energy efficiency and circular processes; but also launching targeted training programs, possibly through EU cohesion funds, to enhance SME capabilities in adopting green technologies. - The Importance of Narrative and Protection of the Vulnerables
Policymakers and business representatives underlined the influence of public perception and narratives. While data shows living standards are generally improving, dissatisfaction persists. Transparent, consistent communication about the benefits and costs of the energy transition—alongside realistic timelines—was flagged as pivotal.
It would be also crucial to develop mechanisms (e.g., social funds, targeted subsidies) that protect vulnerable populations from higher energy or resource costs.
4. The Role of the Circular Economy
- Shifting Beyond the Linear Model
Participants pointed out that current production and consumption systems, based on extracting virgin materials and generating waste, are incompatible with long-term sustainability. The transition towards circular economy was framed as both a necessity and an opportunity for European industrial leadership. - Policy and Market Tools
Harmonized circular standards across the EU, especially in construction and demolition, was viewed as central to creating scalable markets for recycled and reused materials. For example, standardizing definitions and practices to make it easier to trade secondary materials across the single market. Extended Producer Responsibility (EPR), changes to taxation (e.g., taxing virgin materials rather than labour), and stronger public procurement rules were repeatedly endorsed as possible solutions. - Targets and Metrics
Many suggested replicating the success of climate targets with clear objectives for material and resource productivity. Establishing reliable metrics and targets for circularity would send market signals to drive investment and innovation. For instance, embedding circularity targets in public procurement, focusing on high-impact sectors (construction, textiles, electronics, etc.). - Investment and Innovation
Encouraging private and public investment in circular solutions—backed by supportive EU legislation—was seen as a priority to maintain the region’s competitive edge. Participants warned that Europe should not miss the opportunity to lead in circular technologies.
5. Aligning Nature, Climate, and Competitiveness
- The role of nature to achieve climate objectives
Policymakers and business leaders highlighted that carbon neutrality by 2050 may not be sufficient, pointing to the growing need for negative emissions after mid-century. Several argued for frameworks that enable the creation of viable business models for carbon removal and nature-based solutions.
6. Conclusion
Throughout the event, participants consistently returned to the question of “how” to meet climate objectives without undermining industrial competitiveness and social fairness. Key takeaways included:
- Regulatory Predictability and Stability
Participants underscored that ambitious targets require consistent long-term policies. Providing clear, stable targets (such as 2040 interim goals) and policy pathways that allow industry to plan investments confidently. Uncertain or fragmented regulations risk slowing private-sector investment. - Creating Markets for Sustainable Products
Public procurement, standards, and fiscal incentives were all highlighted as ways to stimulate demand for low-carbon and circular goods. - Infrastructure and Skills Development
Modern, resilient infrastructure—both for energy and materials—plus a workforce equipped with updated green skills, are essential to realising a competitive, climate-neutral Europe. - Building a Compelling Narrative
Communicating the benefits of the transition to the public, especially around job creation and improved quality of life, can ensure broader buy-in.
Dinner debate with MEPs
1. Welcome and Overview
The dinner took place following a day of meetings focused on the transition toward a competitive, climate-neutral European Union. CISL Europe facilitated the conversation, bringing together Members of the European Parliament (MEPs) and representatives from various business networks across Europe.
2. Key Themes Discussed
Electrification and Energy Independence
- A policymaker suggested that Europe’s strategic response to global challenges in energy could be summarized by the motto “Electrify, Electrify, Electrify!”
- Participants pointed to the gap between Europe’s high fossil fuel import costs and the United States’ domestic production, noting that this highlights the need for a stronger push toward renewable energy and efficient electrification.
- Some business representatives shared that better infrastructure (e.g., more robust grids, charging networks) and sector-specific incentives are essential to accelerate electrification.
- Public–private partnerships were seen as vital for building and modernizing electricity grids, akin to investing in “public highways.”
Balancing Competitiveness and Sustainability
- One participant stressed the importance of honest conversations about which industrial sectors can successfully transition in a low-carbon future. The participant cautioned that not every industry might be competitive if it cannot adapt.
- Several contributors observed that businesses pushing to roll back environmental regulations have intensified political polarization. They urged “progressive-minded” companies to counter such narratives by showcasing how climate action can drive economic gains.
Corporate Climate Action and Reporting
- A business coalition representative reported that over 10,000 companies worldwide have set science-based targets, with over half headquartered in Europe, and with a recent surge also in Japan. This reflects growing corporate engagement in climate goals, though challenges remain in operationalizing them.
- Multiple participants debated how reporting requirements—especially under emerging EU directives—can become more streamlined. One noted that while large firms might handle extensive disclosures, mid-sized and smaller companies could face a disproportionate burden.
- An attendee proposed introducing sector-specific guidelines or phased implementation to ensure that mandatory reporting does not unintentionally stifle innovation or competitiveness.
Infrastructure, Innovation, and Governance
- Policymakers from certain Member States highlighted that state-owned energy companies often lack the agility to invest in renewables. They emphasized the need for coordinated EU-wide strategies, particularly in financing and building large-scale energy infrastructure.
- There was consensus among multiple participants that Europe’s higher energy costs, compared to other major economies, risk deterring industrial investment. The forthcoming Affordable Energy Plan was anticipated with interest.
- A business network representative from Eastern Europe underlined the need to strengthen public sector capacity and raise public awareness. Without proper law enforcement and supportive citizen engagement, sustainability measures may be perceived merely as top-down mandates.
Political Polarisation vs. Positive Narratives
- Several MEPs underscored the urgency of depolarizing the public discourse. They warned that extreme positions—either for aggressive deregulation or unyielding strictness—often deter practical solutions.
- Participants noted that higher energy costs have caused pushback even in historically green-leaning regions. They emphasized the importance of constructive messaging, which can reassure citizens that climate solutions also bring economic and social benefits.
- Calls were made for effective risk-sharing mechanisms, such as targeted public–private partnerships, to encourage first movers in clean technologies while reducing uncertainties for investors. There was strong support for expanding instruments that help finance emerging green technologies. Proposals included leveraging existing European financial institutions (e.g. EIB) to provide guarantees.
- Capacity-building for local authorities was also deemed essential, ensuring they can interpret sustainability reports and enforce regulations effectively.
3. Points of Consensus and Divergence
Areas of Broad Agreement
- Electrification is pivotal for achieving climate neutrality and energy security.
- Predictable, stable frameworks are key to driving private-sector investment in green technologies.
- Balanced, smart reporting should ensure transparency without imposing excessive costs on smaller businesses.
- Collaboration between policymakers, large corporations, SMEs, and civil society is crucial for sustained momentum in climate action.