President of the European Commission Ursula von der Leyen Tuesday said the EU countries must go further and faster with electrification to end its vulnerability to external energy shocks and to do so using European-made technology.
Addressing attendees of the European Clean Tech Conference in a video address on Tuesday, she said Europe has reduced its exposure to energy shocks in recent years but said the bloc was not yet immune to them, as the energy crisis caused by the Iran war has demonstrated.
"As long as we rely on oil and gas, we remain vulnerable. If we want true independence, we must accelerate electrification," von der Leyen said, noting that there had been a 51% increase in sales of electric vehicles since the start of the Middle East conflict less than three months ago.
She said the Commission would present an Electrification Action Plan that sets out specific targets to end exposure to fossil fuel price shocks once and for all, noting that European manufacturing would be at the heart of this transition.
"We have strong foundations, from offshore wind to electrolysers. And two-thirds of Europe's heat pumps are made here. Yet we face increasingly tough, and often unfair, global competition," von der Leyen said.
She said that an Industrial Accelerator Act had been introduced to simplify rules and speed up permitting to ensure foreign investments can yield value for Europe.
A "Made in EU" designation and low-carbon criteria would also guide public authorities in their public procurement decisions, "making sure that taxpayers' money flows to our own European industry," she said.
Turning to finance, von der Leyen said that the EU's Emissions Trading System had been a major success, generating 260 billion euros ($302.17 billion) helping lower emissions by 39% since 2005 in industries within its scope in a period when the economy saw 71% cumulative growth.
While 100% of ETS revenues were re-invested into clean innovation at a European level, this was not true at national level, something that would be addressed during discussion of ETS reform in the coming months.
"ETS revenues must be channeled back into European businesses. This money comes from industry - and it must be used to build the clean industries of tomorrow," she said.
"Clean tech means security. It means growth. It means quality jobs here in Europe. Now is the moment for us to double down. Because Europe must not just use the clean technologies of the future, we must build them."