4th Industrial Forum Plenary Session took place in Brussels on 29 June 2022 in a hybrid format.

In his opening remarks, Commissioner Breton stressed the importance of securing energy supply from all available sources, the need for energy savings, infrastructures (hydrogen), and stockpiling, the need to avoid creating new dependencies, and therefore to look into securing a well-diversified supply of raw materials. Commissioner Breton called on Industrial Forum Members’ to share their views and ideas so as to contribute to the work in all these areas.

Commissioner Breton underlined the importance of the Single Market as a geopolitical tool to ensure resilience and to deliver on the green and digital agenda. Commissioner Breton also briefly updated participants on on-going initiatives to boost the single market, including preparations on the Single Market Emergency Instrument (SMEI).

The industrial stakeholders indicated the need to diversify suppliers and markets, need to regionalise/localise businesses’ supplier base and the need for an in-house production (manufacturing in Europe) as ways to mitigate impact of strategic dependencies and supply chains disruptions.

As regards the raw materials, we need to address the supply chains concentration (one central supplier instead of diversification). To follow the new geopolitical paradigm, it is important to reduce the EU’s strategic dependencies on critical raw materials and REPowerEU is the Commission’s response to this challenge. We need to focus on our priorities (resources/projects, capture the value in our economy), invest in capabilities (need to redevelop the leadership role and knowledge) and support sustainability/circularity/substitution and standards. The Commission (GROW and ENER) is currently working on a Coordinated Demand Reduction Plan – analysis of likely demand of gas and guidance on critical sectors in demand of gas.

Upscale production of key technologies (solar PV, wind, heat pumps and hydrogen electrolysers) has several bottlenecks: in addition to supply chains disruptions the manufacturing of these technologies have limited investment capacities. To address them we need to accelerate permitting (Commission proposes to Member States to establish so called “go to zones” with fast-track approach to permitting), long-term vision with clear targets and indicators for industry and investors, give value to EU environmental excellence (EU made solar PV, eco-design and energy labelling, standardization strategy), financing (RRF, Innovation Fund, IPCEIs, collaboration with EIB), facilitate access to raw materials and key components.

Industrial Forum Members highlighted the need to speed up and simplify permitting, make the Single Market work, remove existing barriers and mitigate the risks of SM fragmentation. The need to address broad logistics sector bottlenecks related to supply chains disruptions as well as the need to further support the international diversification of supply chains have been articulated. Solidarity with Eastern Europe in energy supply disruptions, investment support to SMEs, re/upskilling of EU workforce and need to include social dimension to all actions and upcoming initiatives have been requested. Full support to circular economy (including in design of products and materials), recognition of the regional policies potential and importance of the uptake of new technologies have been confirmed by Industrial Forum members.

The next Industrial Forum plenary session will be organised in late September.