European Energy Sector and Climate Change

As an anti-Green Deal wind blows over the European elections of 9 June, the EU must remain a key driver in the fight against climate change. The next mandate will be essential to ensure that the ambition of the Green Deal bears fruit, enabling the decarbonisation of the European economy while strengthening the EU’s international competitiveness. This also means paying particular attention to citizens’ acceptance by ensuring that each and every one of us benefits from the energy transition.

Challenges and Priorities

Climate change and geopolitical shifts demand a strong answer from Europe. The energy crisis in 2021-2022 reminded us that energy supply dependencies carry significant risks. Resilience and energy sovereignty must remain a priority as a resilient energy sector makes Europe stronger and more independent in its decision-making. This means reducing our dependence on fossil fuels, strengthening our renewable and low-carbon production capacities, further decarbonising and electrifying our economy, and preparing our grid infrastructure for this major shift.

Interconnectivity for Energy Sovereignty

The European internal energy market has proven to be the pillar of a reliable and increasingly decarbonised energy supply across the EU. With a growing share of renewable and low-carbon electricity in the system, coupled with the need to reduce the share of fossil fuels in final consumption, its role will only continue to grow, ensuring that electricity is always produced where it is the cheapest and most decarbonised and allowing us to maintain our European energy sovereignty, also thanks to new investments. This asset must be preserved and strengthened by further deepening cooperation at the EU level.

Franco-German Cooperation

Given the strong industrial clusters on both sides of the Rhine that need to be decarbonised, a stronger Franco-German cooperation on interconnectivity can be beneficial. Even with different national energy mixes, Germany and France exchange electricity to meet their specific needs. Such interconnections increase the security of supply and enable electricity suppliers to sell energy to customers in another EU country. Efficient European energy cooperation requires a high degree of interconnectivity.

Enhancing Competitiveness

A strong European energy sector also means a more competitive Europe. Industrial competitiveness is closely linked to Europe’s energy transition. The EU has the potential to be a technological leader in the energy transition, increasing its energy sovereignty. However, there are worrying dependencies in key industries for the energy transition. A stronger and more coordinated EU industrial policy is needed to reduce Europe’s dependence on imports of net-zero technologies and energies, strengthen value chain resilience, and build a stronger domestic market.

Let’s implement what has been decided in the current mandate, give more visibility to economic actors, strengthen Europe’s competitiveness, and ensure a fair transition for all citizens.

The German and French energy industries believe that capitalizing on the complementarities and synergies between the countries is crucial for prosperity. Close collaboration with European partners is essential to meet the challenges ahead.

Christine Goubet-Milhaud is President of the Union Française de l’Electricité (UFE), and Kerstin Andreae is Managing Director of the German Association of Energy and Water Industries (BDEW).

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