Since its presentation in 2019, the European Green Deal has become one of the European Union’s key political projects. The goal: to make Europe climate-neutral by 2050. But the initiative also aims to strengthen the competitive muscle of Europe’s industry in the global market and to establish a sustainable economy. All this is framed by ambitious targets such as decarbonizing the economy, promoting renewables and developing hydrogen technologies.
Contacts mentioned in the article:
Yusuf Avci, Sustainability Manager at KLINGER Holding
Fact box
What does “climate neutral” actually mean?
But how can these goals be achieved in practice? And what challenges do industrial enterprises face along the road to a low-carbon future? This blog post highlights the most important aspects of the European Green Deal, outlines key challenges for companies and shows how products and solutions from the KLINGER Group can help meet those challenges.
The European Green Deal in brief
The European Green Deal is the EU’s comprehensive roadmap for achieving climate-neutrality by 2050. It comprises the following key strategies:
- Climate target: Reducing greenhouse gas emissions by at least 55 percent by 2030 (compared to 1990) and achieving climate neutrality by 2050.
- Sustainable economy: Strengthening competitiveness while raising environmental and social standards.
- Industrial transformation: Decarbonizing Europe’s industry through new technologies and funding programs, combined with a modernization of production processes.
- Energy transition: Expanding the share of renewables, creating a common EU energy market and increasing research into hydrogen technology as a clean energy source for the future.
In addition to the overarching European Green Deal, there are approaches such as the Clean Industrial Deal, which aim to harmonize industrial value creation with the goals of EU climate policy. Legal measures (such as the Renewable Energy Directive – RED III), funding tools (ETS Innovation Fund, Hydrogen Bank) and an expansion of the infrastructure for clean energy sources form the foundation for achieving these goals. A tight integration of research, innovation and practical application plays an important role here.
Challenges for industrial enterprises
Even if the general public is largely in favor of goals like decarbonization and a circular economy, industrial enterprises must often make far-reaching changes to put these goals into practice. The greatest of these challenges include:
- High energy costs
Rising energy prices are a burden on companies’ competitiveness. Investments in energy efficiency and in-house energy generation can help, but require considerable investments. - Global competition
European companies are in intense competition with regions with less stringent environmental regulations. To stay competitive, Europe must pioneer clean technologies. - Complex legislation
Numerous EU regulations and directives, such as REPowerEU and RED III, as well as initiatives like the Net-Zero Industry Act (NZIA) set ambitious targets that some companies can only meet with concerted organizational effort. - Conversion to hydrogen
The EU is increasingly looking to hydrogen as a clean energy source to reduce emissions in areas that are difficult to electrify. But hydrogen requires an extensive infrastructure as well as novel technologies and expertise – not least special gaskets and valves that meet the high pressure and safety requirements. - Regulatory uncertainty
Investors and customers need and demand predictability, so that fluctuating funding conditions and changing legal requirements make long-term planning difficult. - Infrastructure development
The grid is not yet sufficiently developed for the widespread use of green hydrogen. This puts a break on its large-scale adoption and raises the cost of projects as companies must develop their own transportation and storage solutions. - Cost pressure and availability of raw materials
International supply chains are under strain, and the expansion of renewables often suffers from shortages of critical raw materials. This can hinder production and drive up costs.
Net-Zero Industry Act
The Net-Zero Industry Act (NZIA), which builds on the Green Deal Industrial Plan, aims to greatly expand the production of clean technologies in the EU. Specifically, it aims is to promote technologies that support the transition to renewables and the use of which results in extremely low, zero or even negative greenhouse gas emissions. The plan is to cover at least 40 percent of Europe’s annual demand for technology within the EU by 2030.
This project aims to attract investment, boost the competitiveness of European industry, create high-quality jobs and support the EU in its drive for energy independence.
Solutions for a successful transition
The KLINGER Group offers a wide range of products and services that support industrial enterprises in achieving their climate goals, with a particular focus on valves and gaskets:
Gaskets for energy efficiency and reduced emissions
Leaks are commonplace in industrial processes. As well as incurring costs, they release emissions into the atmosphere. Helping to reduce these losses, high-quality sealing systems from KLINGER pay a direct contribution to decarbonizing industry. They also meet strict safety and environmental protection standards. Find out more on this topic at How to Select the Correct Gasket for Hydrogen Applications.
KLINGER is once again setting new standards. This time with KLINGER Gaja, an exceptionally durable and resource-efficient gasket – further proof of our consistent approach to sustainability. With its excellent ecological balance, this gasket helps companies to meet their own climate targets. Further information: A New Level of Sustainability with KLINGER Gaja
Valves for hydrogen applications
In replacing fossil fuels, hydrogen can become a key element of a climate-neutral industry. But its transportation and storage places high demands on pipework, pressure tanks and, above all, valves. KLINGER has developed special products that work safely and efficiently under these conditions, such as the KLINGER Ballostar KHSVI – the Hydrogen Ball Valve and other valves that are suitable for various pressure and temperature ranges:
- The role of KLINGER ball valves in hydrogen refueling stations
- Circular economy thanks to durable products
Further information: How to select valves for hydrogen applications
Stringent safety standards and compliance
Especially in high-pressure systems and when handling flammable gases such as hydrogen, safety is paramount. As KLINGER products meet all applicable standards (EN, ASME, ISO), they guarantee exceptional reliability.
- Tested gaskets enhance the safety in hydrogen applications
- KLINGER ball valves for Tyrolean hydrogen pioneers
Sustainability and longevity
The KLINGER Group sets great store by ensuring that its products not only meet expectations from a technical perspective but also contribute to an enduring solution. Durable valves and gaskets reduce the consumption of resources and contribute to transitioning to a circular economy. Our focus is on:
- reducing operating costs over systems’ entire life cycle
- reducing downtimes through reliable components
- simplifying maintenance and retrofitting
Read more: Navigating fluid dynamics
ESG as a solution?
ESG (Environmental Social Governance) on its own cannot be the sole driver for putting the European Green Deal into practice, but it can make a vital contribution. Adopting ESG practices such as these contribute in a number of ways:
- Reducing environmental impact and promoting sustainability
- Assuming social responsibility, which is a key aspect of a just transition
- Promoting transparency and responsible corporate governance.
The KLINGER Group, which is also subject to ESG criteria, has always been committed to sustainability. To underscore this commitment, KLINGER has appointed an ESG manager, whose role it is to get all departments and locations on board. You can find out more about our strategic realignment here: The new Sustainability Manager at KLINGER gets everyone on board.
The focus here is on ESG reporting, in the form of a sustainability report that forms part of the Group’s management report. “It’s like a speedometer. How sustainable are our operations, where do we want to be, how far can and must we go?” explains YusufAvci, ESG Manager at KLINGER Holding.
Outlook: Heading for climate-neutrality in industry
The European Green Deal has the potential to guide Europe’s industrial enterprises towards a sustainable future. Its success ultimately depends on a close cooperation between politics, business, research and society. The KLINGER Group is supporting this transition with its products and solutions all around gaskets and valves. As well as helping our customers to achieve the ambitious targets of the European Green Deal, it helps companies cement their own competitive edge in the long term.
Conclusion
The decarbonization of industry, the integration of hydrogen into the energy mix and the modernization of production processes are key components of the European Green Deal. But they present companies with technical, financial and organizational challenges. Offering tailor-made solutions that meet the increasingly stringent safety, efficiency and environmental compatibility demands, the KLINGER Group is making an important contribution to the implementation of the European Green Deal. We do this, not least, by demonstrating ways in which industrial enterprises can successfully leverage the opportunities offered by the Green Deal.
Fact box
Did you know…
… that the Renewable Energy Directive sets an overall target for the share of renewables in the energy mix of at least 42.5 percent by 2030? While this figure is binding at EU level, the aim is 45 percent.
… that, for the first time in 2022, more electricity was produced from renewables than from gas in the EU?
… that 15 percent of the gasket materials used at KLINGER Dichtungstechnik are recycled? This is done by collecting the offcuts of punched-out material sheets, grinding them and blending the grounds into new gasket materials.
