EU-CIP

The industry transformation plays a decisive role in achieving the ambitious German and European climate targets. For German industry to be able to transform itself and invest in climate-friendly technologies framework conditions need to be adapted.

In the first part of the EU-CIP project, the legislative proposals of the European Commission on climate protection of the "Fit for 55" package were analysed and further developed with a view to the primary industry.
In July 2021 the European Commission presented the first part of its Fit for 55 package. Among the policy proposals and adaptations most relevant for the industrial sector were the EU Emissions Trading Scheme, the Carbon Leakage Protection Scheme (including the introduction of a Carbon Border Adjustment Mechanism), as well as the Renewable Energies Directive and the Energy Efficiency Directive. In addition, the Environmental and Energy State Aid Guidelines and the Ecodesign Directive were revised.

The researchers analysed the legislative proposals with regard to their impact on basic industries. Subsequently, they developed a coherent approach for a policy package for climate-neutral and competitive industry. The research supported the Federal Ministry of Economic Affairs and Climate Protection in the EU negotiations on the reform proposals of the "Fit for 55" package. The work included stakeholder participation in the form of meetings with representatives of the steel, chemical and cement industries.

A second part of the project supported the Ministry of Economic Affairs in the drafting of the concept “Lead markets for climate-friendly basic materials” that was published by the Ministry in 2024 and an associated stakeholder process in 2023. Basic materials such as steel or cement from climate-friendly production processes based on new technologies are not yet competitive. Green lead markets can help to strengthen demand and make investments into new technologies more profitable. The concept and an accompanying document propose definitions for climate-friendly steel, cement, ethylene and ammonia that could serve as a basis for a labeling of products, and discuss policy options to create and support lead markets.

In the project the Wuppertal institute cooperated with Guidehouse (lead), Fraunhofer Institute for Systems and Innovation Research ISI, and the law office BBG und Partner.