Europe's industrial transformation

Enhancing Europe’s long-term prosperity while strengthening security

Changes in global politics and economics are challenging assumptions about Europe’s economic model and sparking debate over the future of European industries. The global race for clean technologies is intensifying and Europe risks losing both economic leadership and strategic autonomy without a coherent industrial and trade policy for decarbonisation. A well-designed industrial strategy can cut emissions, build resilient supply chains, create good jobs, and reduce dependence on volatile fossil fuel markets.

The industrial transformation presents both an emissions challenge and a political economy challenge. Our work is designed to bring together cross-sector stakeholders to develop an adequate policy mix to phase out the most polluting production processes while keeping the transition politically and economically durable.

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Our national and regional teams work with partners to ensure national and European investment strategies are aligned with the Paris Agreement and consider the altered geopolitical landscape in Europe. To achieve this, Europe must actively support the development of innovative and resilient industrial structures, reducing dependence on costly fossil fuel imports. This means embedding direct electrification, energy efficiency, and circular economy principles into the investment cycles that will shape European industry for decades.

Beyond Europe, we work to build new trade and investment alliances that support cleaner, more resilient supply chains – with strong environmental and social standards built in. Our industrial transformation work is closely integrated with other priority areas – particularly climate finance and international engagement.

This includes mobilising investment for industrial transformation and supporting regions and communities most affected by the transition away from fossil fuels.

Impact stories

Fossil free energy
Land, food & nature
21.04.2026

A Strait Too Narrow: How Fertiliser Disruption Is Unravelling Global Food Security

As conflict unfolds in the Middle East, markets and consumers remain fixated on the Strait of Hormuz. Headlines focus on disrupted shipping lanes, supply chain uncertainty and rising petrol prices. But far less attention has been paid to how this crisis reaches beyond the…

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International engagement
24.02.2026

The Strategic Climate Risks Initiative joins the European Climate Foundation

We are pleased to announce that the Strategic Climate Risks Initiative (SCRI) has joined the European Climate Foundation as a hosted platform. SCRI is a think-and-do tank based in the UK and working at the forefront of the “new climate reality” — helping governments, institutions, and communities across the world understand…

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Clean transport
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28.08.2025

Rethinking travel: What’s changing about how Europe moves?

As the summer travel season winds down across the world, the emissions left in its wake remain. With millions having taken to the skies and roads—and transport still one of the continent’s biggest sources of pollution—Europe faces a pressing question:…

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