Towards Green Industrial Partnerships
- The EU can boost its competitiveness by partnering with countries rich in renewables and key resources
- Value-adding cooperation on clean energy and raw materials can strengthen the EU’s strategic role and support the Clean Industrial Deal
- Though the Carbon Border Adjustment Mechanism may frustrate partners, it also incentivizes the EU to support clean manufacturing abroad through co-investments
- European firms could benefit from targeted support abroad to help boost their competitiveness and create value for partners
- Strong links with energy diplomacy and foreign policy are key to integrating the EU's industrial objectives into foreign investment, trade and development policy
Reducing Europe’s Energy and Resource Strain
The European Commission’s Clean Industrial Deal (CID) seeks to accelerate industrial decarbonization, reduce reliance on fossil fuel imports and reinforce economic resilience through stronger technological innovation. This Clingendael Policy Brief explores how partnerships with other countries can support the CID’s objectives. Cooperation for added value around energy and critical raw materials can help to position the EU as a strategic and reliable partner, fostering economic resilience both at home and abroad. Operationalizing this requires clear communication about the EU’s geostrategic interests and a more explicit focus on partner countries’ key concerns, particularly regarding the EU’s Carbon Border Adjustment Mechanism (CBAM). Risk-mitigating instruments such as public financial guarantees and CBAM revenues can be more strategically deployed to ramp up private investments under the Global Gateway. This can help to incentivize technology exchange and capacity development in partner countries while bolstering European companies’ competitiveness abroad. Finally, coordination between the EU level and Member States is essential to mainstream green industrial objectives across EU foreign policy, trade and finance.
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