Pollution: EU Environment Agency urges deep industrial transformation to drive further emission cuts

Brussels – Over the last two decades, emissions from energy-intensive industries in Europe have fallen dramatically, but progress has stalled, and the health costs of pollution remain high. Further reductions will require a more profound industrial transformation, together with the full implementation of existing EU environmental legislation, with some additions, according to a report released by the European Environment Agency (EEA) entitled Zero pollution, decarbonisation, and the circular economy in energy-intensive industries.

The report explains that energy-intensive industries have made great strides over the past two decades, cutting greenhouse gas emissions by 42 per cent. Crucial sectors such as steel, chemicals, and cement production have seen a sharp decline in air pollutants, particularly dioxins (63 per cent), nickel (64 per cent), and NOx (55 per cent), demonstrating that the combination of technology and regulation can yield concrete results. However, behind these figures lies a more complex reality: progress seems to have stalled, and the price society continues to pay for pollution remains very high, with health costs estimated at around 73 billion euros per year. 

The report highlights that the decline in emissions observed after 2020 is not solely due to greater energy efficiency, but also reflects the continent’s economic difficulties. The reduction in environmental impact has, in fact, coincided with a decline in the gross value added (GVA) of the sectors concerned, suggesting that the slowdown in production and structural changes in the economy are playing a decisive role. These industries, which account for over 60 per cent of total energy consumption in European manufacturing, currently face a negative impact on “their competitiveness during the EU energy crisis, compounding existing challenges related to weak demand and global overcapacity in sectors such as steel.” Furthermore, “electricity in the EU still costs two to four times as much as it does for the EU’s main trading partners.”

To break this deadlock and drastically reduce health-related social costs, the European Environment Agency argues that simply enforcing existing laws is no longer enough. “Further progress will depend on full implementation of existing EU environmental and climate legislation, combined with more fundamental changes in emission-intensive industrial processes. The analysis is set in the context of the EU’s Clean Industrial Deal, which seeks to accelerate industrial transformation while supporting sustainable competitiveness,” according to the report. For the EEA, therefore, a more profound industrial metamorphosis is needed, going beyond incremental improvements and embracing radical changes in production processes.  The future of these sectors depends on integrating electrification, the use of secondary raw materials, and the transition to circular economy models.

Ultimately, the challenge for Europe is to “coordinate investments and policy choices…ensuring that efforts to cut emissions and pollution also deliver health, competitiveness, and resilience benefits.” Only through this integrated vision, according to the EEA, can industry cease to be seen exclusively as a source of emissions and become the cornerstone of a new sustainable competitiveness for the entire continent.