Danfoss Power Solutions Inc.
11/06/2024 | Press release | Distributed by Public on 11/06/2024 07:57
Danfoss demonstrates the growth opportunities in competitive decarbonization
Danfoss demonstrates the growth opportunities in competitive decarbonization
Wednesday, November 6, 2024
Powering European Industry: Competitive decarbonization can drive Europe's industrial future
Danfoss, in collaboration with the International Energy Agency (IEA), BusinessEurope, and Danish Industry, hosted a major conference last week bringing together industry leaders and policymakers to address Europe's competitiveness challenges.
- More than 80 industry leaders and policy makers gathered in Sønderborg, Denmark for the Powering European Industry event last week.
- European competitiveness under pressure was the focus of the event, with participants discussing what can be done together and what's needed from the new EU Commission.
- Danfoss President and CEO Kim Fausing argued that decarbonization isn't just the right thing to do - it also brings down energy costs and increases our competitiveness.
Danfoss, in collaboration with the International Energy Agency (IEA), BusinessEurope, and Danish Industry, hosted a major conference last week 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.
From left to right: Thomas Bustrup, Deputy Director General, Danish Industry, His Majesty King Frederik X of Denmark, Kim Fausing, President and CEO, Danfoss, Dr. Fatih Birol, Executive Director, International Energy Agency, Markus Beyrer, Director General, BusinessEurope.
Dr. Fatih Birol, Executive Director, International Energy Agency, speaking at the Powering European Industry event.
The opening 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.
Dr Birol emphasized 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."
High energy costs, worsened by geopolitical events, continue to threaten European industries' profitability and competitiveness. Dr Birol 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."
Kim Fausing underlined that competitive decarbonization is one of the solutions to the challenge of restoring European competitiveness, saying. "It could not only be the right thing to do, it could also be really driving Europe's competitiveness. It can also drive a great growth opportunity."
His comments support the findings of the latest Danfoss Impact paper which states that competitive decarbonization" holds the key to unlocking European competitiveness, enabling industries to simultaneously reduce their environmental footprint and enhance their competitive edge. The optimization of motor efficiency in the EU alone could save €9.5-10.7 billion in electricity costs annually while avoiding 12.5-14.1 million tons of CO2-emissions - equivalent to the annual footprint of up to two million European citizens.
Kim Fausing, who declared he is a stubborn optimist when it comes to Europe's future, explained that the solutions are already available to drive energy efficiency and electrification - but we need more speed. He also referenced Mario Draghi's report on the future of European Competitiveness, which states "decarbonization must become a source of growth".
Closed-door roundtable, chaired by Kim Fausing and moderated by former EU Commissioner Connie Hedegaard, identified key challenges and solutions.
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.
Kim Fausing, President and CEO, Danfoss
Site visits gave participants the opportunity to experience first-hand the solutions that can be implemented today.
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.
IEA Chief Economist Tim Gould presented findings from the World Energy Outlook, noting the impact of high energy prices on European competitiveness but also predicting a potential price decrease. This raised questions about whether policymakers would seize the opportunity to enact necessary reforms. Industry representatives from Vattenfall and Saint Gobain stressed the need for clear demand signals and improved access to affordable, clean energy.
Subsequent fireside chats and roundtable discussions explored innovation, financing, electrification, energy security, and the EU's 2040 climate targets.
Site visits also gave conference participants the opportunity to experience first-hand the solutions that can be implemented today. The highly engaged participants visited both Danfoss' carbon neutral headquarters in Nordborg and the Vesterled Brick Plant which is on track towards carbon neutrality.
Following the event, Danfoss will now be working with like-minded, progressive industry players to give the new EU Commission concrete input on what they can do to help put European industrial competitiveness back on track.