Ursula von der Leyen, President of the European Commission, has unveiled her political guidelines for 2024-2029, setting out an ambitious agenda for a stronger, greener, and more competitive Europe. Her vision includes key priorities such as industrial sustainability, energy security, affordable housing, and digital innovation. These guidelines will directly impact the expanded polystyrene (EPS) Industry, as they shape the policy environment in the construction and packaging sectors, where EPS is critical. This article explores how von der Leyen’s strategy, particularly the Clean Industrial Deal, affordable housing initiatives, and circular economy policies, offers both challenges and opportunities for the EPS industry.
A Clean Industrial Deal for Europe's Future
A cornerstone of von der Leyen’s agenda is the Clean Industrial Deal, aimed at positioning Europe as a leader in clean technologies while reducing emissions and energy consumption across industries. This initiative presents significant opportunities for the EPS industry, particularly in enhancing production sustainability and contributing to energy-efficient construction.
Supporting Industry Transition
The Clean Industrial Deal is designed to help energy-intensive sectors, such as EPS manufacturing, transition to cleaner technologies. EPS production, which relies heavily on energy, stands to benefit from the Decarbonisation Accelerator Act, which von der Leyen has proposed to drive investment into greener infrastructure and cleaner industrial processes. This legislation will channel funding to modernise factories, improve energy efficiency, and reduce emissions—key priorities for EPS manufacturers looking to align with Europe’s green goals.
Furthermore, von der Leyen is committed to ensuring that European industries have access to affordable, sustainable energy sources, stabilising prices and reducing dependence on imported fossil fuels. The Clean Industrial Deal will be crucial for maintaining energy security while advancing climate targets. EPS manufacturers will benefit from a more predictable energy landscape, enabling long-term planning and lower operational costs as renewable energy sources like wind and solar become more widespread and cost-effective.
A particularly relevant aspect of the guidelines for the EPS industry is the emphasis on water security and a circular approach to managing water resources. As energy and resource consumption remain critical issues, EPS producers will also need to consider ways to reduce water use in production and implement more sustainable water management practices.
Affordable Housing and the Social Climate Fund
One of the most significant new initiatives is the European Affordable Housing Plan, which aims to tackle housing inequality by increasing investments in affordable, energy-efficient homes. This initiative is of particular importance to the EPS industry, which plays a crucial role in insulating buildings and improving their energy efficiency. As part of this plan, von der Leyen has proposed collaborating with the European Investment Bank to create a pan-European investment platform that will attract private and public funds for affordable and sustainable housing. This will undoubtedly drive-up demand for EPS insulation materials, as energy-efficient construction is a core component of the plan.
In addition, von der Leyen announced that the Social Climate Fund will support home renovations, particularly for vulnerable groups, by providing financial assistance to improve access to energy-efficient housing. This represents another avenue for EPS manufacturers to grow their market share, as Member States invest in housing upgrades that reduce energy consumption and prevent energy poverty. EPS products, known for their excellent insulation properties, will be integral to the success of these initiatives, ensuring homes remain warm in winter and cool in summer while reducing heating and cooling costs.
Importantly, von der Leyen has also proposed a revision of EU State aid rules to support housing investments. This revision will make it easier for governments to provide financial assistance for housing projects that incorporate energy-efficient materials like EPS. By aligning with these policy changes, the EPS industry can reinforce its position as a leader in sustainable building solutions.
Strengthening Europe’s Competitiveness and Innovation
Von der Leyen’s agenda places a strong emphasis on competitiveness, especially through innovation and digitalisation, which are crucial for maintaining Europe’s leadership in global markets. For the EPS sector, these priorities offer pathways to strengthen production processes, reduce waste, and expand into new markets.
Driving Innovation in EPS Manufacturing
The European Commission is committed to increasing research and development (R&D) funding, particularly through the expansion of the European Research and Innovation Council. This will provide EPS manufacturers with more opportunities to invest in innovative technologies that reduce energy consumption, improve material recycling, and create new applications for EPS. For example, research into low-carbon production methods could enhance the industry’s sustainability credentials and ensure it remains competitive in the face of stricter environmental regulations.
Von der Leyen also highlighted the need for digital transformation in European industries. For the EPS sector, digitalisation offers opportunities to optimise production through smart factories, where automation and real-time data analytics can improve efficiency, reduce waste, and lower costs. By embracing Industry 4.0 technologies, EPS manufacturers can future-proof their operations and reduce their environmental footprint, aligning with Europe’s broader sustainability goals.
Single Market and Simplified Regulations
A key part of von der Leyen’s vision is to deepen the Single Market and simplify regulations, creating a more streamlined business environment across the EU. This will be achieved through a new European Prosperity Plan, which will cut red tape and harmonise regulations, reducing bureaucracy and extra rules that our members would welcome. This will make it easier for businesses to operate across borders. For EPS manufacturers, this will mean easier access to new markets, particularly as demand for energy-efficient construction materials is likely to grow in the next few years, in response to the EU’s climate and housing policies.
The President also announced efforts to simplify environmental regulations under the Circular Economy Act. This legislation will create a single market for secondary materials, encouraging the use of recycled materials in construction and packaging products. This is especially relevant for the EPS industry, which has already made significant strides in recycling polystyrene materials. By fostering demand for recycled EPS and ensuring that waste management regulations are harmonised across the EU, the Circular Economy Act will help manufacturers capitalise on the growing demand for sustainable packaging and construction solutions.
The proposal also includes a new Chemicals Industry Package, which aims to simplify REACH regulations and provide clearer guidelines on chemical use and waste management. For EPS manufacturers, this package could help reduce administrative burdens while ensuring compliance with environmental standards, particularly in areas relevant to the industry. By streamlining these regulations, the package will support manufacturers in maintaining safe and sustainable practices without the complexity of additional bureaucratic hurdles.
Dan Jørgensen Appointed as Commissioner for Energy and Housing
As part of the new European Commission, Dan Jørgensen from Denmark has been appointed as the Commissioner for Energy and Housing. In this pivotal role, Jørgensen will be responsible for tackling critical challenges such as reducing energy prices, investing in clean energy, and decreasing the EU’s energy dependencies. Importantly, he will also be the first-ever Housing Commissioner, tasked with overseeing the sector's energy efficiency, investments, and construction activities.
Jørgensen's mission letter outlines several key priorities for housing, including:
- Proposing the first-ever European Affordable Housing Plan.
- Developing a European strategy for housing construction, with a focus on reducing building costs, improving workforce skills, and enhancing environmental performance in construction.
- Launching a pan-European investment platform for affordable and sustainable housing in collaboration with the European Investment Bank.
- Doubling the planned cohesion policy funds to channel more investments into affordable housing.
- Revising state aid rules to enable housing support measures.
To achieve these objectives, Jørgensen will work closely with the Executive Vice-President for a Clean, Just, and Competitive Transition, with the support of the Directorate-General for Energy and a newly established taskforce on housing.
Jørgensen's appointment brings his extensive experience in climate and energy policy to the forefront. Having served as Denmark’s Minister of Climate and Energy from 2019 to 2022, he played a crucial role in setting ambitious climate targets and advancing the transition from fossil fuels to wind energy. His leadership in founding the Beyond Oil and Gas Alliance underscores his commitment to sustainable energy.
Teresa Ribera Rodriguez, Jessika Roswall, Wopke Hoekstra, and Valdis Dombrovskis: Key Figures in Europe’s Green Transition
Teresa Ribera from Spain has been appointed as the Executive Vice President (EVP) of a Clean, Just, and Competitive Transition. In this influential role, Ribera will play a pivotal part in shaping Europe’s environmental and climate policies. She will be responsible for taking final decisions on politically sensitive issues and overseeing the overall coordination of environmental and climate actions. Her leadership will be crucial in aligning climate targets with economic competitiveness, ensuring Europe maintains its leadership in the green transition.
Jessika Roswall, from Sweden, will serve as the Commissioner for Environment, Water Resilience, and a Competitive Circular Economy. Roswall will lead the Directorate-General for Environment (DG Environment), focusing on key environmental issues, including packaging, waste management, and water resilience. Her role is central to advancing the European Union’s goals on circular economy initiatives, ensuring that Europe remains at the forefront of sustainability in key sectors like construction and manufacturing.
Wopke Hoekstra, from the Netherlands, has been appointed as the Commissioner for Climate, Net-Zero, and Clean Growth. Hoekstra will focus on leading Europe’s climate policies, particularly regarding emissions reduction and clean growth initiatives. His leadership will directly influence climate regulations that impact business decisions, ensuring that Europe continues to move toward its ambitious net-zero emissions targets while fostering growth in clean energy sectors.
Valdis Dombrovskis, from Latvia, will serve as the Commissioner for Economy and Productivity, Implementation, and Simplification. Known for his experience and seniority within the European Commission, Dombrovskis will play a critical role in ensuring that key environmental and economic policies are implemented effectively. His focus on simplifying regulations will help businesses navigate the complex environmental legislation, while his role in productivity and economic performance will ensure that Europe remains competitive throughout its green transition.
These key appointments signal the European Commission’s commitment to driving forward its climate and sustainability agenda, with each Commissioner playing a vital role in ensuring a greener, more competitive Europe.
In Summary: Ursula Von der Leyen’s Strategy for a Greener, Stronger Europe
Ursula von der Leyen’s 2024-2029 Political Guidelines present a bold vision for Europe’s future, offering both challenges and opportunities for the EPS industry. From the Clean Industrial Deal to the European Affordable Housing Plan, these initiatives provide a framework for EPS manufacturers to contribute to Europe’s green transition while maintaining their competitive edge.
The Clean Industrial Deal will drive investment in cleaner technologies, allowing EPS producers to modernise their operations and reduce their environmental impact. The affordable housing agenda, supported by the Social Climate Fund, will increase demand for EPS insulation materials as Member States invest in energy-efficient housing to reduce energy poverty.
Additionally, the Circular Economy Act and simplified regulations will create new opportunities for the reuse of EPS materials and streamline cross-border operations within the Single Market. For EUMEPS members, aligning with these priorities will be essential in ensuring the EPS industry remains a leader in sustainability and innovation.
Newly introduced in this term, the European Affordable Housing Plan signals a significant policy shift, placing housing security at the forefront of EU objectives. Though the specific Commissioner responsible for overseeing this plan is yet to be announced, the plan highlights the EU's commitment to addressing housing inequality. Coupled with the Social Climate Fund and partnerships with the European Investment Bank, the EPS industry can expect a surge in demand for energy-efficient building materials.
By staying ahead of regulatory changes, investing in innovation, and embracing sustainability, EUMEPS members can help lead Europe’s transition to a greener, more resilient, and competitive future. Together, we can ensure that EPS remains a cornerstone of Europe’s efforts to achieve its sustainability and climate goals.