Competitiveness and Independence through Sustainability: The Way of the Regions

The Regions and Energy Agencies of FEDARENE committed in their Manifesto for Climate Neutrality to support the European Institutions in making the energy transition a reality across territories. Therefore, we are committed to making the Clean Industrial Deal and Affordable Energy Action plan work for regions, municipalities, communities and businesses across Europe.

Both plans state that Europe’s dependence on imported fossil fuels is the main cause of the higher and more volatile energy prices. This dependency is an existential threat to Europe’s competitiveness and way of life. Ensuring Europe’s sustainable security of supply must therefore be an integral component of the new ReArm Europe plan as well.

Responding to this realisation, FEDARENE’s principle of Energy Transition First states that national governments who seek energy security should prioritise the use of sustainable energy alternatives before investing in non-renewable sources which are time-consuming, polluting and lead to stranded assets. Regions and Energy Agencies have already successfully implemented 100% renewable and energy-efficiency-based solutions, ready for immediate deployment without lengthy negotiations or costly infrastructure. Embedding this principle into European law must be the next step for a competitive and independent Europe.

Regions across Europe are already implementing clean industrial deals with their businesses and cleantech clusters. Regions and Energy Agencies across Europe are assisting SMEs and energy-intensive industries in increasing their competitiveness through fossil fuel phase-out and innovation. Clean technology clusters such as the ones run in Basque Country and Upper Austria are proof that Europe’s renewable energy industry can lead. We stand ready to support the EU Institutions and Member States in scaling up enabling frameworks  and replicate these initiatives across Europe.

With the increasing electrification, grid capacity must not be seen as a bottleneck but as a necessary evolution for European competitiveness and security of supply. FEDARENE’s islands and regional energy agencies are demonstrating innovative solutions, by mainstreaming flexibility through small and large-scale storage deployment among other approaches. We stand ready to support the development and implementation of the Electrification Action Plan and Grid Package.

The circular economy and energy sufficiency programmes implemented with municipalities and businesses should by scaled-up and replicated with the support of the Circular Economy Act.

Regarding the new Heating and Cooling Strategy expected in 2026, it is important to remember that heating and cooling are more than mere commodities, they are human rights. As such they must be protected. Fuel switch to renewable energy is their best protection. Campaigns across EU regions are placing renewable based heating and cooling solutions in the homes of Europeans, but not fast enough. EU’s heating & cooling policies must embrace a diversity of technologies and RES-based solutions adapted to a diversity of regional circumstances. Market facilitators such as Energy Agencies stand ready to design efficiently targeted programmes and activate the relevant value chains.

As the Governance Regulation of the Energy Union is announced to be revised, it is an opportunity to acknowledge as assets the leading expertise of regions, cities and their energy agencies in decarbonisation programmes and innovation. In the best interest of National Governments who are faced with unprecedented challenges, Multilevel Dialogue must become Multilevel Governance, recognising the sub-national governments as partners in policy making. The effective implementation of the Clean Industrial Deal requires this development.

FEDARENE President and Director of the North-West Croatia Regional Energy and Climate Agency (REGEA), Julije Domac, comments:

“A fair and effective energy transition is crucial for Europe’s resilience, and it is a fundamental pillar of Europe’s strategic autonomy and economic resilience. The expansion of renewable energy will not only lower costs for energy-intensive industries such as steel and cement but also strengthen the competitiveness of European businesses and ensure affordable energy for all citizens. FEDARENE welcomes the Clean Industrial Deal and Affordable Energy Action Plan as critical first steps, but we must go further.

To achieve true energy independence, we must invest in a future where Europe no longer relies on external suppliers for its energy needs. This requires a decisive shift towards renewable energy, electrification, and innovation-driven industrial policies. Our regions and energy agencies are already leading this transformation, but their role must be fully recognized within the European governance framework. We can only secure Europe’s energy future through bold and coordinated action, protect our economies from external shocks, and uphold the principles of sustainability, competitiveness, and social justice.

FEDARENE stands ready to work with EU institutions, national governments, and regional leaders to implement these objectives. Together, we will build a Europe that is not only energy independent but also secure, prosperous, and resilient in an era of geopolitical instability. Now is the time to act.“