MNI: EU Summit Draft Shows Pragmatism On Green Transition

European leaders will signal a more pragmatic approach on the green transition in order to mute its impact on industrial competitiveness when they meet in Brussels later this week, draft summit conclusions show.

Pressure from Eastern European states, with Poland acting as their most vocal ring leader, but also from France and Belgium, is driving this more pragmatic approach, EU sources say. 

"Poland has been especially vocal on ETS2," a source said, referring to the planned extension of the EU’s emissions-trading regime to household heating, road transport and small businesses, while Hungary has demanded delays to intermediate climate targets. But the leaders are likely to take their traditional role of issuing more general political guidance while being clear that industrial renewal is paramount.  (See MNI SOURCES: Doubts Over EU Carbon Pricing Key For ECB Rates)

In the draft conclusions of the Oct 23-24 summit seen by MNI, the leaders will state that the success of such a "fundamental transformation" will depend on it being "pragmatic and socially balanced". The draft also calls for "affordable solutions across the economy" in order to ensure Europe's continuing competitiveness.

The debate over the 2040 Green Transition target is set to be the most controversial issue on the summit agenda this Thursday and comes as many EU states have expressed concerns about the impact of the near-term deadline for the introduction of ETS2 in terms of higher energy prices and costs for consumers and businesses. The scheme will extend the EU emissions trading scheme to buildings, road transport and shipping by 2027.

The draft also calls on the EC to accelerate concrete proposals to lower energy prices and commends its recent proposal to "protect" the Union's steel industry from the "unfair impacts of global overcapacity". It calls for a similar focus on hard-pressed sectors like car manufacturing, shipping and aviation and chemicals "so that they remain resilient and competitive" despite global and geopolitical challenges and do not get in the way of Europe's industrial renewal as set out by the Draghi and Letta plans.