Brussels, 8 January 2025
EREF supports a renewed focus on demand creation as a critical strategy to
accelerate Europe’s industrial decarbonisation and sustain long-term competitiveness.
In alignment with a broad coalition of industry associations, NGOs, research
institutions, and companies, EREF urges the European Commission to place demand
creation at the forefront of its legislative agenda, particularly within the Clean Industrial
Deal, Circular Economy Act, and Industrial Decarbonisation Accelerator Act.
An important driving force behind this call for action is the Demand Creation initiative,
launched by EREF member NVDE, the Dutch Sustainable Energy Association. The
initiative (accessible at www.demandcreation.eu and supported by its coalition
partners) seeks to establish robust European markets for cleaner industrial products,
which is crucial for stimulating investment and innovation across the continent.
As Olof van der Gaag (Chairman of NVDE) highlights: “When a broad coalition like this
calls for policies that require sustainable products, you know that something
exceptional is happening. This is a clear call to secure the future of European industry
through sustainable production. Europe is already on the right track. Continuing with
more sustainable production offers many opportunities. Demand creation is a
necessary next step.”
Over recent decades, significant progress has been made in greening Europe
industry — renewable energy production has surged, energy efficiency has improv
and cleaner technologies have proliferated. Yet investment in sustainable industrial
transformation is now slowing. Companies face rising costs, shrinking markets for
cleaner products, and fierce competition from lower-cost non-EU producers. Th
downturn risks triggering an industrial exodus, undermining both climate targets and
economic stability.
The Case for Demand Creation
Although tools such as the Carbon Border Adjustment Mechanism (CBAM) help level
the playing field, they fall short of creating stable markets for cleaner industrial good
EREF supports establishing European markets closer to the end of value chains to
foster demand creation. By implementing off-take mandates and similar market-based requirements, this approach would guarantee consistent demand for cleaner-produced
plastics, synthetics, steel, building materials, and fuels.
Implementing these measures is anticipated to:
● Stimulate investments into sustainable production capacity and encourage
innovation.
● Foster the creation of new renewable product value chains.
● Strengthen Europe’s industrial autonomy and resilience by encouraging
production and innovation on European soil.
● Speed up the transition to sustainable energy and raw materials, vital for
achieving long-term decarbonisation goals.
EREF believes that creating predictable demand will send clear signals to investors,
which is essential for accelerating the green transformation process.
A Timely Intervention
With only 15 years remaining until emission allowances for industry expire, the window
for decisive action is narrowing. Demand creation provides a means to unlock stalled
investments and initiate the transformation needed to secure Europe’s economic and
environmental future. EREF strongly suggests that, alongside existing mechanisms like
the EU Emissions Trading System (ETS) and CBAM, demand creation should be
integrated into forthcoming legislative frameworks to stimulate a new wave of industry
investments.
For more information, please contact
Prof. Dr. Dörte Fouquet
Director
doerte.fouquet@eref-europe.org
Dirk Hendricks
Secretary General
dirk.hendricks@eref-europe.org