The umbrella organization of European industry and business associations has called for an urgently needed expansion of renewable energy sources to maintain Europe's industrial competitiveness.
EU legislators need to act quickly to achieve a competitive energy and climate transformation, said BusinessEurope, the leading advocate for business growth and competitiveness at European level.
BusinessEurope Director-General Markus J. Beyrer said high energy prices continue to seriously affect the global competitiveness of European companies and industrial production.
He added that securing energy at competitive prices will be crucial for maintaining Europe's industrial base.
A study conducted by the association and economic consulting firm Compass Lexecon concluded that even under favourable EU energy policies, energy prices in Europe are projected to be at least 50% higher than in the US, China and India until 2050.
According to the study, this would lead to a serious competitive disadvantage for European companies compared to its global rivals.
Among other things, BusinessEurope is calling for a strong expansion of all necessary energy sources and infrastructure. This, they said, will enhance the security of European energy systems and help reduce the overall costs of the green transition.
According to the study, wholesale electricity costs could drop by nearly 40% by expanding renewable energy in the most cost-effective locations and eliminating barriers to its growth.
To achieve this, more private investment needs to be mobilized, and approval procedures need to be accelerated and streamlined, BusinessEurope said.