Competitive decarbonisation can drive industrial future of Europe

Danfoss, in collaboration with the International Energy Agency (IEA), Business Europe, and Danish Industry, hosted a major conference bringing together industry leaders and policymakers to address Europe’s competitiveness challenges.

The event, held in Sønderborg, focused on providing concrete input to the incoming European Commission’s planned Clean Industrial Deal. More than 80 industry leaders and policy makers gathered in Sønderborg, Denmark for the Powering European Industry event.

The plenary session featured addresses from IEA Executive Director, Dr Fatih Birol, Danfoss President and CEO, Kim Fausing, and HM King Frederik X of Denmark, with each speech underscoring the critical need for competitiveness and the potential for Europe to lead in the age of electricity.

Danfoss President and CEO Kim Fausing argued that decarbonisation is not just the right thing to do – it also brings down energy costs and increases our competitiveness. He stated, “We need to get back to the entrepreneurial mindset in Europe where we believe in the future. We should be happy to invest in Europe because there is a reliable and long-term plan. And that’s not stop and go. We need what I’d call a masterplan, or a well-defined effective long-term regulation.”

Dr Birol emphasised competitiveness as the top priority for the new EU Commission, saying, “I am worried that Europe will miss the train of being an important player in tomorrow’s modern industries.” He added, “If we leave everything to our usual policies, usual tools, usual instruments, I can tell you honestly that Europe will not be a major player in tomorrow’s clean energy technology. It will be an important player but not a leading one.”

The conference also included a closed-door roundtable, chaired by Kim Fausing and moderated by former EU Commissioner Connie Hedegaard, which identified key challenges and solutions. Participants emphasized the need for a more streamlined European energy policy, increased electrification, reduced bureaucracy, and better utilization of incentives, particularly for energy efficiency. The importance of leveraging AI and digitalization, differentiating energy price from cost, and ensuring long-term regulatory consistency for investment were also highlighted.