In the pursuit of long-term growth and global leadership, Europe is focusing on sustainable competitiveness, economic security, and strategic autonomy. A new report, The Future of European Competitiveness, led by Mario Draghi, provides a detailed roadmap for how European industries can thrive while addressing critical challenges such as decarbonisation, innovation, and reducing dependencies. For the Expanded Polystyrene (EPS) industry, the report’s insights offer an essential framework for navigating the evolving market, enhancing our contributions to sustainability, and securing our competitive position in the global economy. This article explores the report’s key findings and their direct relevance to the EPS sector.
A Vision for Europe's Sustainable Competitiveness
Mario Draghi’s report takes a comprehensive look at Europe’s future and highlights three critical pillars for ensuring Europe’s competitiveness in the global market: innovation, decarbonisation, and resilience. These pillars form the backbone of Europe’s strategic vision to maintain economic leadership while adapting to global challenges.
The first pillar focuses on closing the innovation gap. Europe is behind the US and China in critical areas like digitalisation and advanced technology. Draghi highlights the need to bridge this gap by accelerating research and development, fostering a culture of commercialisation, and creating a business environment that nurtures high-tech sectors. The goal is to ensure that European businesses, both large and small, have the infrastructure, capital, and support needed to innovate and grow.
The second pillar is aligning decarbonisation with industrial competitiveness. Europe’s ambitious climate neutrality target by 2050 requires industries to rapidly transition to more sustainable and energy-efficient practices. However, Draghi’s report emphasises that decarbonisation must be done without sacrificing competitiveness. It calls for stronger investment in renewable energy, innovative low-carbon technologies, and a regulatory framework that allows businesses to decarbonise efficiently while remaining cost-competitive in the global market.
The third pillar centres on reducing Europe’s dependencies—particularly in critical supply chains like energy, raw materials, and technology. The report advocates for strategic autonomy, encouraging European industries to reduce reliance on external suppliers while building resilient local supply chains. This not only ensures security but also strengthens Europe’s ability to lead in sectors such as clean technology and digital infrastructure.
The report’s findings are particularly relevant as the European Commission develops its Clean Industrial Deal, a plan designed to ensure that European industries maintain their global leadership while achieving climate and sustainability goals. This vision of a competitive, self-sufficient, and sustainable Europe sets the tone for the future, and for industries like EPS, it provides a clear framework for aligning business strategy with broader European objectives.
The EPS Industry: Key to Europe’s Sustainable and Innovation Goals
The EPS industry is uniquely positioned to contribute to many of the strategic goals outlined in Mario Draghi’s report. EPS, with its wide application in energy-efficient building materials and sustainable packaging solutions, plays a vital role in both the decarbonisation agenda and Europe’s circular economy.
Sustainability at the Core: One of the report’s key focuses is the alignment between decarbonisation and competitiveness, a theme that strongly resonates with the EPS industry. As Europe moves toward climate neutrality, the role of EPS in energy-efficient construction is more crucial than ever. EPS products, such as insulation, reduce energy consumption in buildings, significantly contributing to the EU’s carbon reduction goals. This is particularly relevant under the European Performance of Buildings Directive (EPBD), which aims to enhance the energy performance of buildings across the EU.
Furthermore, EPS is 100% recyclable, aligning with Europe’s circular economy objectives. Our industry has already made significant strides in closed-loop recycling processes, reducing both waste and the need for virgin raw materials. As Europe prioritises circularity in manufacturing, the EPS sector’s ability to innovate in recycling and reuse will be essential. Whether through advances in chemical recycling technologies or the promotion of extended producer responsibility (EPR) schemes, the EPS industry is well-placed to continue reducing its environmental footprint.
Competitive Innovation: The report underscores the critical need for Europe to close its innovation gap, particularly in advanced technologies. For the EPS industry, this call to action is clear: innovation must be at the heart of our efforts to maintain competitiveness. By investing in R&D, we can develop new, more sustainable EPS solutions that align with market demand for low-carbon, eco-friendly materials.
For instance, EPS manufacturers are constantly trying to improve the production processes to lower emissions. Additionally, digitalisation offers new opportunities to streamline production and logistics, optimise supply chains, and improve energy efficiency. By embracing smart manufacturing technologies, EPS producers can enhance productivity while reducing waste and energy consumption. This approach aligns with the report’s call for digital transformation across industries to drive both innovation and competitiveness.
As Europe advances towards a more digital, automated future, the EPS industry must continue to invest in technologies that not only improve efficiency but also ensure long-term sustainability. By doing so, we can meet the growing demand for sustainable construction materials and innovative packaging solutions, while contributing to the broader European objectives of clean growth and innovation.
Resilience and Strategic Autonomy: Securing the Future for EPS
Another central theme of the report is Europe’s need for open strategic autonomy—the ability to remain competitive and connected globally while reducing dependencies on external suppliers. For the EPS industry, this is particularly relevant in terms of securing the raw materials necessary for production.
Raw Material Supply Chains: EPS manufacturing relies on key raw materials, particularly styrene, which is derived from petrochemical processes. The report stresses the importance of reducing Europe’s reliance on external suppliers for critical materials. This is an opportunity for the EPS industry to strengthen its European supply chains, and reduce vulnerabilities in sourcing. By developing localised supply chains and investing in raw material recycling processes, the industry can improve resilience and contribute to Europe’s goal of strategic autonomy.
Collaboration for a Stronger Future: The report calls for enhanced collaboration across industries, governments, and research institutions to tackle common challenges. For the EPS industry, active collaboration with policymakers is essential to ensure that future regulations are conducive to both sustainability and competitiveness. By working closely with regulators, EPS can remain a key player in Europe’s efforts to lead on the global stage, contributing to a resilient, low-carbon, and circular economy.
Conclusion: The Future of EPS in Europe’s Competitive Landscape
As Europe embarks on its journey towards sustainable prosperity, the EPS industry stands at the crossroads of opportunity and innovation. The insights from Mario Draghi’s The Future of European Competitiveness report provide a valuable framework for how our industry can align itself with Europe’s broader goals of decarbonisation, innovation, and resilience.
By embracing sustainability, investing in innovation, and building more resilient supply chains, the EPS industry is not only securing its future but also playing a critical role in Europe’s path to global competitiveness. At EUMEPS, we are committed to supporting our members in navigating these changes and ensuring that EPS continues to be a cornerstone of Europe’s industrial transformation. Together, we can build a future where the EPS industry thrives in a sustainable, competitive, and resilient Europe.