Yesterday, the European Commission unveiled the long-awaited Clean Industrial Deal (CID); a cornerstone initiative for the future competitiveness and sustainability of the European industry. However, one of its key shortcomings is the absence of a clear and ambitious vision for the role of digitalisation.
A competitive and clean industry cannot thrive without a profound digital transformation. Digitalisation is not a mere complement but a key enabler of decarbonisation, circularity, and production efficiency. The adoption of emerging technologies and digital solutions is crucial for enhancing productivity and driving growth, optimising resource use and reducing emissions across European industries.
The CID acknowledges that electrification and renewable energy integration require smart grids, advanced metering, and digital platforms to manage energy infrastructure. However, investment in these technologies remains insufficient. Furthermore, Europe continues to suffer from chronic underinvestment in digital infrastructure, which hampers the widespread adoption of advanced solutions in the energy and industrial sectors.
Without a robust digital strategy, the CID will struggle to meet its own competitiveness and decarbonisation objectives at the pace demanded by the global landscape. Digitalization must be established as a strategic pillar, reinforced by concrete measures to stimulate investment in networks, data, and automation. Otherwise, Europe risks not only losing competitive edge but also falling of its clean goals.
Digitalisation as a Driver for a Competitive and Clean Industry
Europe faces two major challenges: competitiveness and decarbonisation. Without a strong, innovative, and technologically advanced digital industry, it risks diminishing its economic influence while delaying its transition to climate neutrality.
The Impact of Digitalisation on Competitiveness and Economic Growth
The adoption of advanced technologies—such as artificial intelligence, edge computing, and digital twins—alongside digital solutions enabled by the Internet of Things and connected sensors, has the potential to transform the industry through enhanced innovation, agility, and efficiency.
Firstly, data analysis provides deeper market intelligence, enabling the development of new production models and services that better align with consumers needs and expectations.
Secondly, the digitisation of production processes offers real-time visibility into disruptions in the supply chain or equipment failures, enabling swift responses to minimise downtime and financial losses.
Finally, the optimisation of production processes ensures smarter resource use, reducing costs and enabling reinvestment in research and development, driving growth and strengthening market positioning.
Beyond theorical benefits, empirical evidence supports this industrial transformation. Studies show that investment in advanced technologies—whether individually or in combination—directly enhances business productivity. At a macroeconomic level, digitisation is even more crucial for advanced economies facing demographic challenges as it sustains, and even enhance, the overall productivity growth.
In short, industrial digitisation is a catalyst of increased productivity, economic growth, and long-term competitiveness.
The Enabling Effect of Digitalisation for Competitive Sustainability
The positive impact of digitalisation on industrial sustainability is often underestimated. Yet, digital transformation not only enhances competitiveness but also actively contributes to decarbonisation.
Firstly, digital innovations improve the performance of both products and services. For example, digital devices (product) are equipped with increasingly efficient batteries, while the use of drones in logistics (service) significantly reduces emissions compared to traditional transport methods.
Secondly, smart monitoring systems enable early fault detection, preventing irreversible damage to equipment. This extends their lifespan, reducing the demand for new machinery and promoting circularity, which in turn lowers emissions associated with raw material extraction and the manufacturing of new equipment.
Finally, efficiency gains in resource use help minimise environmental impact. This applies both to their consumption —such as water usage— and their extraction, —such as critical raw materials—, ultimately benefiting both local communities and ecosystems.
Europe cannot afford to pursue decarbonisation without unwavering commitment to digitalisation. Without it, the Clean Industrial Deal will fall short, and European industries will lose ground to global competitors who have already embedded digital transformation at the core of their industrial strategies.
Digitalisation is not an option—it is the foundation for a stronger, more competitive, efficient, and clean industry.
