EU must fix three historical mistakes to save its industry

Poland is set to assume the presidency of the European Union at a critical juncture where urgent reforms are needed for energy strategy and industrial competitiveness. The head of the International Energy Agency, Fatih Birol, emphasized that the EU faces significant challenges stemming from past decisions that have weakened its energy security and sustainability. He identified three major mistakes: dependency on Russian energy resources, the abandonment of nuclear energy, and the failure to maintain leadership in renewable energy technologies, particularly solar panels, where China has now taken a dominant role. Birol expressed concern that the EU’s heavy reliance on Russian energy has left it vulnerable to geopolitical tensions, which have become increasingly pronounced. He recalled warnings from as far back as 2004, highlighting that Germany's dependency on Russian energy, and by extension Europe’s, was known to present risks that were largely ignored. With the ongoing conflict in the Middle East impacting energy markets, the sustainability and security of Europe's energy supply have become even more pressing. Additionally, Birol noted a significant decline in the share of nuclear energy in Europe, which accounted for 30% of electricity generation two decades ago but is now projected to fall to only 15%. Many countries have either entirely forsaken nuclear energy or have not invested in it, leading to a potential energy gap that could have dire consequences for energy security in Europe. Consequently, there is an urgent need for the EU to reconsider its stance on nuclear energy as a crucial part of its energy mix. Lastly, the IEA head pointed out the loss of control over the renewable energy sector, especially in the production of solar panels, where Europe once dominated with a 60% market share, but now finds itself reliant on China, which produces 80% of solar panels. He urged that the upcoming strategy on clean industry from the European Commission should coincide with Poland's presidency to address these pressing challenges and reformulate EU energy policies to avoid further dependency and enhance sustainability. Birol implored Polish authorities to treat their presidency as an opportunity to lead essential change during these critical times.