The way to green transition

Although EU politicians as well as many entrepreneurs and consumers recognise the need for green transition and its development potential, there are also questions about the manner and speed of its implementation. There is also plenty of concern about the cost of change to achieve climate neutrality for the EU economy by 2050. The related opportunities and fears were discussed in Karpacz by participants in the debate entitled ‘The green transition: A driving force or a threat to our industry?’.

Growth and fewer emissions

Viktor Elbling, German ambassador to Poland, talked about the driving force that the green transition can be for innovation and the EU economy. As he reminded, recent decades have shown that economic growth can be combined with reduced emissions; since the early 1990s, the European economy has grown by 60% while reducing emissions by 20%. The need for sustainable development based on renewable energy sources has also been confirmed by the Russian invasion of Ukraine, which has drawn attention to the risks associated with Russian gas supplies.

According to Viktor Elkbing, many companies are prepared for the transition, including German companies investing in Poland, which want to rely more and more on clean energy. Poland is likely to become a major energy producer of green hydrogen, which can play a key role in the development of the energy industry and which is increasingly important in Germany.

At the same time, the green transition means having to adapt to numerous regulations. This requires large investments, and also increases production costs in Europe.

Lars Gutheil, Director General of the German-Polish Chamber of Industry and Commerce, who chaired the debate, drew attention to the phenomenon of the relocation of parts of production from Europe to China. Participants in the debate repeatedly mentioned the example of China, which in a short space of time has grown into a global player in the electric car market.

According to Daniel Wussow, Senior Vice President, Mobile Emissions Catalysts, BASF, a more flexible approach is needed in the implementation of the green transition, as the rigid regulatory burden is a major hindrance for companies and entire industries. Including for the automotive sector, which is expected to switch 100% to electric cars by 2035.

'The European automotive industry is not ready for this,’ assessed Daniel Wussow, adding that the lack of readiness will probably be shown by the European Commission's planned 2026 assessment of progress in reducing CO2 emissions. Every step towards a sustainable transport of the future is a step in the right direction. But we should remain open to a variety of solutions and technologies – one of which is catalytic converters, which have been helping to protect the air we breathe for more than half a century. It is a proven solution that continues to play a key role in shaping sustainable transport of the future,' adds Wussow.

Thomas Kreuzinger-Janik, director of Volkswagen's plant in Września, acknowledged that the automotive sector is under enormous pressure these days – the challenge is not only the electrification and digitalisation of products, i.e. cars, but also the conversion of factories as well as their suppliers to renewable energy sources. While all Volkswagen Poznań plants are 100% powered by renewable energy, and the factory in Września has a photovoltaic farm, this is more difficult for their suppliers.

Rafał Rudziński, CEO of Robert Bosch, which manufactures heat pumps, pointed out the burden that green regulations place particularly on smaller companies. As he reminded, since 2019, when the Green Deal was adopted, the world has changed a lot, influenced by events such as a pandemic or the Russian invasion of Ukraine. Meanwhile, the targets and regulations adopted at that time have not changed and, what is more, they cover all countries to the same extent despite their different situations.

According to Robert Rudziński, it would be useful to have more flexibility in implementing the green transition. It is also necessary to convince the EU population of the importance of the green transition and to support small businesses.

Support for SMEs

'Companies are overloaded with regulations. Large companies can cope, but smaller ones need support,' stressed Robert Rudziński. This is why some large companies, including VW, have special support programmes for their suppliers, noted Thomas Kreuzinger-Janik.