· 3 min read
Faced with economic pressures and global competition, the Dutch government—and by extension the EU—has turned to short-term industrial support measures. These include subsidising energy costs for heavy industry and delaying or softening climate regulations. While these efforts are meant to preserve domestic industrial capacity, they risk entrenching outdated and unsustainable business models.
Instead of buying time for the past, Europe should invest in building the clean, competitive industries of the future. That means creating conditions where next-generation sectors can thrive—powered by green electricity, sustainable infrastructure, and a highly skilled workforce.
The dangers of subsidising the unsustainable
Today’s industrial policy often assumes that if traditional industries—like steel, chemicals, or aluminum—leave, they’ll never return. But that assumption ignores history. The development of the Dutch gas fields in Groningen attracted entire ecosystems of energy-intensive manufacturing, precisely because it offered secure, affordable, and predictable energy.
Rather than clinging to industries that cannot—or will not—decarbonise at pace, we must recognise that some sectors are simply not viable in a zero-carbon economy unless radically transformed. Subsidising their survival only delays the inevitable and distorts the market for cleaner competitors.
Recent policy decisions—such as energy rebates or delays in climate compliance—send the wrong signal. They reinforce the idea that the polluting industry is too big to fail, when in reality it should be too dirty to save without a clear transition plan.
The assets Europe already has
Fortunately, Europe has the tools to build something better. Our continent still enjoys world-class infrastructure, top-tier research institutions, and a highly educated, multilingual workforce. Quality of life remains high, attracting international talent and innovation.
If we match these advantages with abundant clean energy—via renewables, hydrogen, and modernised grids—we create a compelling proposition for industries of the future. Europe can become a global hub for sustainable manufacturing, circular economy technologies, and advanced digital industries.
Examples are already emerging. Poland is positioning itself as a leader in electric vehicles and heat pumps. Spain is becoming a hotspot for green hydrogen. Denmark is setting global standards in wind power manufacturing and integration. These are scalable, future-ready strategies—not backward-looking subsidies.
Letting go of industrial nostalgia
There is no denying that sectors like steel and base chemicals will be harder to decarbonise. But that does not justify a blanket preservation of all legacy industry. Instead, we should be honest about which sectors are transition-compatible and which are not. For those that are vital, we must push innovation—like green steel from hydrogen or electrified chemical processes. For others, we must accept change and facilitate transformation.
New industries will emerge to take their place—often cleaner, more profitable, and better aligned with Europe’s values and climate goals. But they need room to grow. That means phasing out the privileges currently extended to energy-intensive incumbents.
Conclusion
Europe cannot afford to prolong the decline of legacy industries under the guise of saving jobs or protecting competitiveness. Doing so risks locking us into high emissions, economic stagnation, and declining relevance in global markets.
Instead, we must build the foundation for clean, competitive, and sovereign industrial capacity—powered by policy clarity, clean energy, and an innovation mindset. The transition will be difficult, but the reward is a more resilient and future-ready European economy.
illuminem Voices is a democratic space presenting the thoughts and opinions of leading Sustainability & Energy writers, their opinions do not necessarily represent those of illuminem.
