European managers support emission cuts. But call for a realistic industrial transition plan

European managers have signed a landmark Pledge backing the target of a 90% reduction in emissions by 2040. Yet, they are urging the EU to involve them in shaping a realistic and pragmatic industrial transition plan - one that moves beyond the rigidity and ideology that have often characterized the Green Deal.

Approved in October 2025 by CEC European Managers, the Pledge - “A Vision for European Climate Leadership” - represents the collective voice of one million managers across the continent.

Ambitious goals, fragile governance

Europe has set world-leading climate ambitions, but too often progress has been slowed by bureaucracy, rigidity, and an overly ideological rather than industrial mindset.

Many in the business world see the Green Deal as a constraint, a cost, and an administrative burden that risks undermining European competitiveness against the U.S. and China. Companies have often called for a revision of the EU Emissions Trading System (ETS) and for technological neutrality in achieving climate goals.

Meanwhile, China has emerged as the global leader in the green economy, dominating solar, battery, and electric vehicle markets. European companies have made major strides in improving efficiency in energy and raw materials, but the next phase - mass electrification - requires investments beyond the reach of many, especially small and medium-sized enterprises.

Frequent regulatory changes at the EU level compound the uncertainty, making it harder to plan long-term investments. As the Draghi Report highlighted, Europe’s competitiveness is held back not by a lack of vision but by regulatory instability, market fragmentation, and a shortage of managerial skills to steer the green transition. In short, the objectives are clear, but the governance tools remain weak.

Decarbonization as an opportunity, not a burden

Despite these challenges, European managers firmly support decarbonization - seeing it not only as an environmental and political imperative but as a business opportunity.

The first argument is economic: the green economy is booming. As business leaders know well, success comes from innovation, not hesitation.

Across Europe, 60% of CEOs now see sustainability as a core growth driver. Innovative sectors - from clean energy to agritech, circular manufacturing, and electric mobility - are attracting both capital and talent.

In 2023 alone, European climate-tech startups raised over USD 20 billion, according to Dealroom. Renewable energy has become cheaper than fossil fuels: the cost of solar power has fallen by 90% in a decade, and wind by over 70%. And let’s not forget: the cost of inaction on climate change far outweighs the cost of action.

The second factor is social: European citizens overwhelmingly demand change. 85% see climate change as a serious threat, and 88% call for more renewables and greater energy efficiency.

Finally, there is a strategic imperative. Moving away from fossil fuels strengthens Europe’s competitiveness, resilience, and prosperity. But as the U.S. slows down and China races ahead, Europe risks getting caught between lofty climate ambitions and industrial decline - ceding technological leadership to others.

A commitment, with conditions

This is why European managers are stepping up. At its October 2025 assembly in Brussels, CEC European Managers formally endorsed the EU’s 2040 decarbonization target, while committing to a proactive role in achieving it.

Through the Pledge, managers commit to:

• Integrate sustainability and climate considerations into corporate strategy
• Prioritize socially just, people-centered transition pathways
• Strengthen ethical leadership and long-term value creation
• Promote innovation and responsible economic transformation
• Build partnerships for sustainable development at every level

But, as CEC European Managers emphasize, this is not a blank check.

Managers must be recognized as drivers of change, not mere executors of top-down policies. They are the ones - across companies, boards, and public administrations - who turn climate goals into concrete action.

CEC calls for a European industrial transition plan that generates economic value and quality jobs, one that is pragmatic, realistic, and competitive.

Climate leadership must go hand in hand with economic and technological leadership. Without a strong industrial base, the transition will be neither green nor fair.

Hence the call for a more integrated approach that aligns sustainability, competitiveness, and social cohesion.

A pact for shared responsibility

European managers are asking institutions for a pact of shared responsibility, built on five key demands:

1. Listen to managers – Involve managers in policy design, not just execution. Those who must implement the rules can make them more effective and achievable.

2. Regulatory certainty – Stable, predictable frameworks are essential for long-term investment.

3. Invest in skills – The transition requires significant upskilling, including managerial capabilities that combine sustainability and competitiveness.

4. Smarter regulation – The Green Deal and Clean Industrial Deal must evolve from bureaucratic burdens into practical, value-creating management tools.

5. Political leadership – Europe’s leaders must demonstrate that climate action, industrial competitiveness, geopolitical security, and social equity can - and must - advance together.

The EU has defined the “what”, the goals, but the real challenge is the “how.” Managers are the engine turning political vision into operational reality. They:

• Drive implementation, aligning daily business decisions with low-carbon innovation
• Shape culture, uniting people around a shared purpose in an age of polarization
• Make sustainability practical, through products and services that make green choices easy and desirable
• Think systemically, managing the interconnections between climate, biodiversity, social impact, and geopolitics
• Advise policymakers, offering evidence-based insights from the field on what works and what doesn’t

Europe needs more pragmatism, more collaboration, more engagement with managers in the real economy.

The climate challenge is immense, but so is Europe’s potential.

The CEC European Managers Manifesto for European Climate Leadership was presented to the Council of the European Union in Brussels in October 2025 and at COP30 in Brazil in November 2025.

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