30 January 2025:
The European Commission’s awaited Competitiveness Compass was published on 29 January and delivers on its ambition to be a key document guiding the actions of the Commission for the mandate ahead. The Compass lays down upcoming milestones and develops a more strategic approach to policymaking focusing on three main areas: innovation, decarbonisation, and reducing dependencies.
FBE welcomes the Commission’s focus on these key areas, vital for achieving climate targets and building a resilient and competitive industry. As Europe is falling behind in innovation technologies such as AI, cleantech, or energy storage, the Compass suggests new initiatives, supporting start-ups, and boosting R&D investment.
Another priority will be to establish a joint roadmap for decarbonisation and competitiveness. Crucially, the Compass identifies high and volatile energy prices as a core challenge and sets out areas for intervention to facilitate access to clean, affordable energy. The Clean Industrial Deal, to be published in February, will set out a competitiveness-driven approach to decarbonisation.
Supply chain security and dependency reduction are the third thematic pillar. To diversify and strengthen supply chains, the Compass introduces plans to secure raw materials, clean energy, sustainable fuels, and clean tech globally. Within the internal market, revising Public Procurement rules may enable a European preference for critical sectors and technologies.
“Flow batteries, with their long-duration storage capabilities, are key to ensuring a stable and resilient clean energy system. We welcome the Commission’s recognition of the need for greater investment in energy storage, essential for integrating renewables and enhancing energy security. By tackling high energy costs and boosting cleantech investment, the Compass creates opportunities to scale up European energy storage manufacturing and reduce import dependence. We look forward to more concrete measures supporting flow battery deployment and strengthening Europe’s energy independence.” – Anthony Price, FBE Secretary General.
However, FBE regrets the delay of the Electrification Action Plan and European Grids Package to 2026, emphasising that strengthening Europe’s electricity system is crucial. Grid congestion is delaying renewable projects, and better use of energy storage helps preventing rising redispatch costs, inefficiencies, and higher emissions.
Overall, the Compass provides a path forward and introduces new initiatives aimed at simplifying EU legislation, boosting innovation, supporting specific sectors, reskilling the workforce, increasing the Union’s assertiveness, and harnessing the potential of the Single Market.
While not highly detailed, it sets a clear shift from past targets and objectives toward supporting the European economy, focusing on strategic sectors like digital, clean industries, and defence. A more targeted approach would be a notable change in European governance.