3 Questions on the EU's Clean Industrial Deal to MEP Michael Bloss

The European Commission published the long-waited Clean Industrial Deal. What's your first take? Why do we need a European industrial policy?

Our challenges are huge. Just consider China’s industrial policies and look at what the US is doing right now. I believe Mario Draghi is right. We urgently need an integrated European industrial strategy. But what we’re currently seeing is not enough to meet these challenges. It’s true that industrial policy is not an EU competency under European treaties, but that shouldn't stop us. Without a coherent European industrial strategy, we risk falling behind. Right now, there is no proposal on the table that guarantees coherence and cooperation between EU Member States. This is the biggest gap. That said, there are promising approaches. For instance, the focus on renewable energy, building grids, and flexibility. This will lower prices, as Draghi pointed out, and it will strengthen Europe’s resilience to external shocks, especially in this highly politicised global energy market that we currently see. Another key concept is “lead markets”.

We need to think about how we support the scaling up of European industrial production. However, there is a key issue. The current focus remains on traditional sectors like automotive, steel and chemicals. While these industries are important, they are surely not the industries of the future. What Europe needs is a clean tech strategy, one that fosters the development of new industries such as wind, solar and electrolysers. This will make Europe more innovative, because innovation is what drives industry. We can't compete with China in industries where they are already ahead. Instead, I think it’s wise to focus on innovating the next generation of technologies.

Do you think this industrial roadmap will be enough to address the competitiveness challenges that European industries face?

First and foremost, Europe needs well-defined industrial roadmaps. But these must go beyond general frameworks and consider the entire production chain. While we have fairly good battery regulations, access to raw materials remains a major bottleneck, largely because China dominates global supply chains. It’s crucial that policymakers fully address this issue rather than offering half-measures. The challenges, however, vary significantly across different industries. For example, European heat pumps can be supported through high efficiency standards. Steel production requires the development of European green steel lead markets, potentially through mechanisms like quotas. For wind energy, we must invest in grid infrastructure, transformers, and port facilities to support deployment. European electrolysers need local content requirements to ensure the production can scale effectively. 

Striking the right balance between over-regulation and insufficient support is difficult. To achieve this, industrial roadmaps must not be only symbolic exercises. They need to be taken seriously and integrate the expertise of businesses, policymakers, scientists and civil society. This inclusive, collaborative approach could serve as a viable alternative to China’s state-controlled model and the US’ more aggressive, market-driven strategy. Europe has the opportunity to shape an industrial policy that is both strategic and sustainable, but only if it acts decisively.      

How can the EU ensure that the Clean Industrial Deal not only focuses on decarbonisation and competitiveness, but also builds a truly just transition?

This is a crucial issue. From the start, the European Green Deal placed too little emphasis on the social dimension of the transition. A just transition can only succeed if all those affected - businesses, workers, local communities, and stakeholders - are actively involved and have a real influence in decision-making. As Greens, we call for a Just Transition Directive requiring companies to create plans that include social dialogue, collective bargaining, and the participation of workers in strategic decisions. Workers should also have the right to training and reskilling during paid working hours, financed by employers, to adapt to the changing job market. If public money supports industry, workers must have a seat at the table when determining the direction of the transition. Clear pathways must be established for workers in traditional industries to secure jobs in emerging sectors, such as green technology. All of this is a question of overall distributive justice at its core. Public funds are limited, and every euro spent on industry subsidies means fewer resources for schools, childcare, and social infrastructure. That is why subsidies must be targeted where they are truly needed, but they must also come with clear social and environmental conditions. 

A just transition means balancing economic support with the broader needs of society. Furthermore, a just transition is not only about industry, it directly affects people’s everyday lives. Nowhere is this more evident than in the energy sector. Rising energy costs and energy poverty are already major challenges, with around three million households in Germany struggling to afford their heating expenses. The transition must not leave these people behind. To make this work, local communities must be actively involved. Their knowledge and experience are key in shaping practical solutions. Supporting citizen-led energy projects is crucial to provide affordable, locally produced renewable energy, foster energy independence, and build resilience. A just transition must be built with the people whose lives it transforms.