PRESS RELEASE
2 October 2014, Sopot
Low-emission economy and Europe’s competitiveness
Energy prices for the industry in Europe are now considered one of the main reasons for
the declining competitiveness of the continent’s economy. The conflict between the
objectives in terms of reducing CO2 emissions on the one hand, and the economic growth
of Europe on the other, requires bold and consistent action on the part of the Union’s
decision-makers. The question of how to combine low-emission economy with Europe’s
competitiveness strategy was debated at a discussion panel at EFNI.
The International Energy Agency (IEA) predicts that over the next two decades, Europe’s share in
the global market for high-energy products will drop by a third due to high prices of energy. One of
the underlying reasons is the EU’s climate policy, which requires the Member States to reduce their
emissions of greenhouse gases and increase the proportion of renewable energy sources in their
energy mix.
‘Energy is the driving force behind economic growth. The prices of energy are particularly important
in sectors such as the chemical industry. Politicians and decision-makers must be aware of this
connection, and must take action to control energy prices and subsidize its production,’ said MarieJose Nadeau, Chair of the World Energy Council. She recommended that the prices of allowances for
emissions should be stabilized. The principles on which the European energy market operates should
also be transparent and predictable.
In the opinion of Markus Rauramo, Executive Vice President of Fortum, there should be no conflict
between reducing emissions and boosting competitiveness. ‘In both of these areas I would
recommend cooperation. Both the producers and the consumers need the energy prices to be
predictable,’ he said. ‘In order for the climate policy to be effective, the European Union must set an
ambitious shared objective as soon as possible. At the same time, the Member States should be
allowed to determine on their own how best to proceed to accomplish this objective,’ he explained.
He also argued that it is necessary to create a stable and predictable legal framework that would
encourage both the Member States and businesses to invest in the energy industry. ‘This will translate
into increased security of energy supply, and will ensure that the European economy maintains a
level of competitiveness that is necessary for the continent to progress,’ added Markus Rauramo.
Maciej Grabowski, Polish Minister of Environment, also argued that there is no conflict between the
objectives of the climate policy and economic growth. Poland, he said, offers a good example of
reconciling these two objectives. ‘In the last 25 years, we have doubled our GDP, while at the same
time reducing CO2 emissions by 30 percent’, he noted. In the opinion of Maciej Grabowski, the recipe
for success is to apply the best and cleanest technologies available in the process of industrial
production. ‘In Sopot, which we now have the pleasure of visiting, coal burning furnaces were
replaced with modern low-emission solutions generating the energy necessary for heating. This is of
particular importance in a region where tourism plays such a major role,’ he said.
Robin Barnett, British Ambassador to Poland, noted that innovation is the key to economic
development. He pointed out that the climate policy promoted by the European Union has generated
many advantageous solutions in this regard.
The EU’s climate policy has also influenced the position of the United States, India, and China,
responsible for the largest proportion of CO2 emissions. ‘Over the last decade, the United States,
India, and China have made a very clear shift in their policies,’ he said. This view was shared by
Monica Frassoni, Co-Chair of the European Green Party. She pointed out that the United States was
far behind Europe in terms of research on renewable energy sources and energy efficiency. ‘The
European Union is not at all a lonely island in the area of reduction of emissions,’ she added.
The experts involved in the debate noted also that some solutions that were intended to curb the
emissions of greenhouses gases failed to have the desired effect. For instance, there had been too
much optimism with regard to CCS technologies, and as for the ETS system, the predictions as to
how the system would develop proved untrue. The panellists argued that it is now necessary to
implement new solutions to be able to better predict the changes in the energy market and the
factors that impact the energy prices in Europe. The European Union should also provide a strong
stimulus to propel forward the Green Europe project.
FORTUM was the partner of the debate How to combine low-emission economy with Europe’s
competitiveness strategy?
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