ESMC welcomes the commitments of the Commissioners-designate to reshore industrial capacities to the EU, concrete and quick actions for solar industry expected

After the hearings in the European Parliament completed of the Commissioners-designate, the European Solar Manufacturing Council (ESMC) considers the expressed statements of the Commissioners-designate as a clear shift towards reshoring EU manufacturing capacities, including solar PV.

ESMC appreciates emphasis of the members of the European Parliament on solar PV manufacturing issues including requests for actions. Solar PV manufacturing stands as the strategic essential for reclaiming and sustaining a significant share of production within the EU. ESMC supports the horizontal measures potentially to be applicable for all the EU cleantech industries and expects that the general policy commitments will translate into tangible, rapidly implementable proposals within the upcoming Clean Industrial Deal, new State aid framework and other industrial policies during the first months of the European Commission new mandate.

“It is clear that the Commissioners-designate are unified in their commitment to reshore cleantech manufacturing capacities to the EU. The emphasized alignment and synergies of competition, trade and industrial policies with clear direction to Level Playing Field, enhancing industrial competitiveness, and repositioning, restarting the EU´s relationship with China, is a promising development. European industries, currently operating in survival mode, are eagerly awaiting for concrete actions that will turn these initial policy commitments into impactful changes on the ground“ – states Žygimantas Vaičiūnas, Policy Director of ESMC.

ESMC expects that the general policy objectives of the European Commissions to reshore industrial manufacturing to the EU will be supported by targeted, quick and impactful legislative and non-legislative measures for the solar PV manufacturing. 100 days after the Commission will start its new mandate will be critical in shaping Clean Industrial Deal to support solar PV manufacturing in the EU in ensuring certain off-take of European produced PV equipment and enabling necessary support for the operational costs in the context of the solar PV manufacturing oversupply in China.

ESMC summarises several take-aways of the hearings paving the way for the European competitive cleantech industries, including solar PV manufacturing.

Teresa RIBERA RODRÍGUEZ:

• Alignment and synergies between the clean transition and competitive European economy is a must.
• The Clean Industrial Deal should be key objective, focusing on maximizing public finance and repositioning the EU in the global market.
• The new State Aid framework must accelerate and ensure sufficient cleantech manufacturing capacities in the EU, complementing the goals of the Clean Industrial Deal.
• Fair competition depends on robust enforcement of competition policy, which drives innovation and competitiveness within the EU.
• A Level Playing Field requires fully utilizing all available tools of competition policy.

Stéphane SÉJOURNÉ:

• This Commission is geostrategic one, hence we must secure our strategic autonomy and plan our economic catch-up. Decarbonisation and industrialisation should be mutually reinforcing objectives.
• We must prioritize most of the EU strategic sectors as overcapacities in China are killing our industries. EU Competitiveness Fund should secure equity and guarantees in the global investments battle.
• Public procurements should include quality, sustainability and resilience criteria.
• Traditional trade policies are not working, accordingly we have to balance offensive and defensive approaches (Foreign Subsidies Regulation and Trade Defence policy instruments).
• In solar we are 80% dependent on China – we still must win this battle. We should concentrate our efforts from downstream to upstream to win the innovation battle.

Wopke Bastiaan HOEKSTRA:

• Climate action, competitiveness, just transition and international dimension are the essential tracks to achieve our targets.
• Clean Industrial Deal, to be prepared by 100 days, will foster the competitiveness and should enable the conditions for affordable energies and clean investments by supporting industrial decarbonization, enabling industries access to sufficient and affordable energies and incentivizing investments.
• Level Playing Field is a must for our industrial competitiveness.

Maroš ŠEFČOVIČ:

• China´s overcapacity highlights the need for us to have Level Playing Field ― rebalancing and resetting the relationship with China would ensure more fairness and Level Playing Field for mutually advantageous relationship.
• Better coordination between industrial and trade policies is essential – industrial and trade policies should be mutually reinforcing.
• Solar PV industry is a big warning to us as originally it was our industry and now we are approaching the issue with our political weight as this is connected with our energy security. The key question is how we could be united to trigger the instruments like safeguards, which proved 80-90% efficiency in the steel sector.
• We are now much more prepared and more agile in defending fair trade and protecting our interests.
• While the EU is not interested in trade wars, it is committed to securing a Level Playing Field and addressing China´s overcapacity issues. To ensure the Level Playing Field necessary measures, including trade defence instruments, may be required to achieve this.