The Road Towards a New Clean Industrial Deal

"The new Commission wants to establish green lead markets by regulating the demand side, for example by changing award criteria in public procurement. This is potentially effective, but only in the case of an unbiased regulatory design," says cep economist André Wolf. Green lead markets should not distort markets for downstream and related products and transfer unpredictable financial risks to the state. "They are also only effective if the demand effect generates marketable products. In short, they must path the way for private demand," emphasises the cep researcher.

In Wolf's opinion, the regulation of green lead markets should be limited to a few critical basic materials such as cement, plastics and steel. "When designing green lead markets, competitive risks for downstream European industries must also be avoided. Regulatory measures to stimulate demand should initially focus on public demand through adapted award criteria for public procurement and auctions to promote renewable energies," says the cep expert.