Source: Energy & Management Powernews, February 17, 2022
The transformation to climate neutrality in industry is currently only considered in individual value chains. Necessary is an overarching strategy, demands a study.
The discussion paper was published by the German Energy Agency (dena) together with the Foundation Work and Environment of the IGBCE and the Institute for Advanced Sustainability Studies (IASS). According to the paper, decarbonization of the economy would have complex implications for climate protection and therefore requires overarching strategy and design. The goal must be a new culture of cooperation between politics, business and civil society to achieve climate neutrality by 2045.
"Although individual topics and fields of action of the restructuring of industrial value chains are already discussed separately from each other, a holistic view of the drivers, effects and challenges is urgently needed," says Andreas Kuhlmann, Chairman of Dena's Management Board. The publication with the title "On the way to the climatic neutrality - restructuring of industrial creation of value chains" gives an overview of the effect connections of the lining up changes and impulses for a whole-social discussion tying up to it.
Central fields of action designated
As central fields of action it designates the changes on the job market, a stronger consideration of geopolitical aspects and the advancement of the cycle economy. According to the report, the potential in these areas has not yet been exhausted and active and planned action is necessary to keep industrial companies and value-added stages in the country, to trigger innovations and thus to open up new value chains.
Among other things, the report deals with the consequences of change on the labor market. For example, a strong regional anchoring of certain industries in the course of restructuring value chains could lead to structural breaks with consequences for existing employment relationships. To rule this out, a regionally focused industrial policy should provide support. Existing infrastructures of existing value-added centers should be expanded and developed in a targeted manner to make them attractive for new companies.
Include employees
The industrial employees are the first to be affected by the effects of restructuring, some of which are negative. "The aim of an overarching strategy must therefore always be to make industrial employees, especially in SMEs, fundamentally and with foresight fit for the transformation and the future challenges as skilled workers and to further qualify them, also in order to avoid structural breaks and loss of prosperity," emphasized Kajsa Borgnäs, managing director of the Foundation Work and Environment of the ITUC.
Together transform European value chains
As imports of fossil fuels must continue to decline, changed industrial value chains across Europe are imminent, she said. In addition, there would be new dependencies and competitive relationships that will accompany the growing importance of green hydrogen. This also affects critical raw materials needed in the production of hydrogen and related technologies and components, such as platinum or iridium.
According to the report, this is not just about new partnerships for the procurement of critical resources. It is equally important to promote European values and standards, as well as socioeconomic development and political stability in the European neighborhood. Rainer Quitzow, research group leader at the IASS and co-author of the paper said, "It requires building broad-based, international transformation partnerships, especially with countries in the European neighborhood." In this way, he said, the EU can become an anchor point for building climate-friendly supply chains."
The discussion paper "Towards climate neutrality - restructuring industrial value chains"is available for download on the Dena website.
Author: Susanne Harmsen
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