Thought experiment for a targeted European industrial policy based on electrification by 2050

Abstract

The rewable energy resources within EU27 are highly dominated by wind and solar energy delivering electricity as output. As electrification is the most efficient way to deliver the energy services demanded by society and industry, its direct use is the most effective way to decarbonisation. The present European industry policy is not compatible with electrification focus, as it tries to address a too wide palet. As electrification is the practical implementation of the “energy efficiency first” principle, the industrial policy must be compatible. As a thought exercise, the paper describes a potential industrial basis for Europe in 2050 usingexamples of the electricity sector, the industry intensive industry and the materials and circularity industry. A prosperous European net-zero industry requires ‘safeguards’ for existing incumbents to be removed, and those resources redirected towards much more ‘future proof’ sectors, spearheads where it wants to be first in class. Strategic security in its various aspects and time horizons must be part of the discussion. Industrial value chains within the EU, based on fossil fuel and material flows are substituted by circular material flows and electricity based on locally harvested renewables. Europe must build an industrial system based on its strengths,. electrification being key.