Advance Copy of Draft of Competitiveness Compass: Will It Replace the EU Green Deal?

3E has obtained an advanced draft of the Competitiveness Compass, an ambitious, five-year framework from the European Commission that targets the European Union’s global marketability shortfalls and supply chain vulnerabilities while continuing to drive sustainability success. The draft is scheduled for release on 29 January 2025.

The draft emphasizes the EU’s urgency in continuing to be a global leader in innovation and competitiveness should U.S. support and partnership be impacted by actions and stated desired outcomes from the Trump administration.

Indicators, such as the U.S.’s proposed withdrawal from the Paris Agreement, World Health Organization (WHO), and the OECD Global Tax Deal, appear to reinforce U.S. President Donald Trump’s “America First” policy, causing some to speculate the timing of the release of the draft appears to be in response to those changes.

The Competitiveness Compass focuses on three critical areas to rejuvenate the EU economy:

• Closing the Innovation Gap: A slew of initiatives, including an AI Continent Strategy, Quantum Act & Strategy, and European Research Area Act, aim to position Europe at the forefront of emerging technologies. The initiative introduces targeted measures to foster start-ups, scale-ups, and investments in high-impact sectors like clean tech, life sciences, and advanced materials.

• Accelerating Decarbonization: Through the Clean Industrial Deal and an Affordable Energy Action Plan, the EU hopes to lower energy costs and promote green manufacturing. A proposed Circular Economy Act will encourage recycling, reduce waste, and create a thriving market for reusable materials.

•  Reducing Dependencies and Strengthening Security:A new platform for joint purchasing of critical raw materials and revised public procurement rules is positioned to reduce Europe’s reliance on concentrated supply chains. The EU will also bolster economic security through strategic trade agreements and a proposed White Paper on the Future of European Defense.