SGI Europe urges that the new EU climate architecture, together with the upcoming Clean Industrial Deal, must decisively reinforce the role of Services of General Interest (SGIs) as key enablers of Europe’s transition to climate neutrality by 2050. SGIs form the backbone of Europe’s economy and society, providing essential services that are fundamental in achieving a fair and sustainable transition.
For this demand to become a reality for Europe, SGI Europe advocates for:
- Empowering local and regional authorities in climate governance: Decentralisation must be a cornerstone of the new framework, with an energy and climate policy that allows Member States and their enterprises, municipalities and public authorities more flexibility to pursue emission reductions through approaches tailored to their local and regional contexts, enabling more effective and practical climate action.
- Maintaining a technology-neutral approach to decarbonisation: This requires an EU framework open to diverse low-carbon technological solutions on a level playing field with renewables. Maintaining a technology-neutral stance that supports all pathways to decarbonisation and renewable energy development, provided they contribute meaningfully to emissions reduction and climate mitigation goals. A flexible approach enables Member States to adopt the most efficient technologies for their energy mix while achieving climate goals.
- Supporting climate mitigation in hard-to-abate sectors: SGI Europe advocates for pragmatic climate tools such as CCS/CCU in industries where full decarbonisation remains challenging. These technologies should complement, rather than replace, broader efforts to reduce emissions at the source. Additionally, municipal services of general interest must be central to these policies to balance climate action with essential services, prioritising public drinking water security while pursuing robust, sustainable climate measures.
- Facilitating a modal shift towards sustainable transport: The transport sector remains one of the most challenging areas for emissions reduction. The EU must adopt a policy and financial framework that prioritises shifting from road to rail and public transport. Allowing an adequate budget for the Connecting Europe Facility (CEF) for all Transport modes is key to internalise external costs associated with high-carbon transport modes.
- Protecting Critical Infrastructure for Resilience and Security: To ensure long-term service continuity and economic stability the resilience of critical infrastructure must be protected. Investments should prioritise modernising and maintaining energy, water, transport, and waste management systems. Also, a coordinated approach to protecting infrastructure from both physical and cyber threats is essential to ensure the uninterrupted delivery of essential services.
- Ensuring a socially just transition: The EU Green Deal must be accompanied by a structured EU Climate Dialogue with EU Social Partners to facilitate workforce adaptation, skill development, and employment stability. A strong focus on green skills should be put in the upcoming “Union of Skills”, and should help equip workers for the climate transition, while ensuring that no sector or region is left behind.
SGI Europe calls on the European Commission to integrate these recommendations into the forthcoming legislative and policy initiatives under the new EU climate Architecture for 2040. We stand ready to collaborate and provide further input to ensure a climate framework that fully harnesses the potential of SGIs for a sustainable future.
