How Ursula von der Leyen’s 2024–2029 Political Guidelines Impact the EPS Industry

Ursu­la von der Leyen, Pres­i­dent of the Euro­pean Com­mis­sion, has unveiled her polit­i­cal guide­lines for 2024–2029, set­ting out an ambi­tious agen­da for a stronger, green­er, and more com­pet­i­tive Europe. Her vision includes key pri­or­i­ties such as indus­tri­al sus­tain­abil­i­ty, ener­gy secu­ri­ty, afford­able hous­ing, and dig­i­tal inno­va­tion. These guide­lines will direct­ly impact the expand­ed poly­styrene (EPS) Indus­try, as they shape the pol­i­cy envi­ron­ment in the con­struc­tion and pack­ag­ing sec­tors, where EPS is crit­i­cal. This arti­cle explores how von der Leyen’s strat­e­gy, par­tic­u­lar­ly the Clean Indus­tri­al Deal, afford­able hous­ing ini­tia­tives, and cir­cu­lar econ­o­my poli­cies, offers both chal­lenges and oppor­tu­ni­ties for the EPS industry.

 

A Clean Indus­tri­al Deal for Europe’s Future

A cor­ner­stone of von der Leyen’s agen­da is the Clean Indus­tri­al Deal, aimed at posi­tion­ing Europe as a leader in clean tech­nolo­gies while reduc­ing emis­sions and ener­gy con­sump­tion across indus­tries. This ini­tia­tive presents sig­nif­i­cant oppor­tu­ni­ties for the EPS indus­try, par­tic­u­lar­ly in enhanc­ing pro­duc­tion sus­tain­abil­i­ty and con­tribut­ing to ener­gy-effi­cient construction.

Sup­port­ing Indus­try Transition

The Clean Indus­tri­al Deal is designed to help ener­gy-inten­sive sec­tors, such as EPS man­u­fac­tur­ing, tran­si­tion to clean­er tech­nolo­gies. EPS pro­duc­tion, which relies heav­i­ly on ener­gy, stands to ben­e­fit from the Decar­bon­i­sa­tion Accel­er­a­tor Act, which von der Leyen has pro­posed to dri­ve invest­ment into green­er infra­struc­ture and clean­er indus­tri­al process­es. This leg­is­la­tion will chan­nel fund­ing to mod­ernise fac­to­ries, improve ener­gy effi­cien­cy, and reduce emissions—key pri­or­i­ties for EPS man­u­fac­tur­ers look­ing to align with Europe’s green goals.

Fur­ther­more, von der Leyen is com­mit­ted to ensur­ing that Euro­pean indus­tries have access to afford­able, sus­tain­able ener­gy sources, sta­bil­is­ing prices and reduc­ing depen­dence on import­ed fos­sil fuels. The Clean Indus­tri­al Deal will be cru­cial for main­tain­ing ener­gy secu­ri­ty while advanc­ing cli­mate tar­gets. EPS man­u­fac­tur­ers will ben­e­fit from a more pre­dictable ener­gy land­scape, enabling long-term plan­ning and low­er oper­a­tional costs as renew­able ener­gy sources like wind and solar become more wide­spread and cost-effective.

A par­tic­u­lar­ly rel­e­vant aspect of the guide­lines for the EPS indus­try is the empha­sis on water secu­ri­ty and a cir­cu­lar approach to man­ag­ing water resources. As ener­gy and resource con­sump­tion remain crit­i­cal issues, EPS pro­duc­ers will also need to con­sid­er ways to reduce water use in pro­duc­tion and imple­ment more sus­tain­able water man­age­ment practices.

Afford­able Hous­ing and the Social Cli­mate Fund

One of the most sig­nif­i­cant new ini­tia­tives is the Euro­pean Afford­able Hous­ing Plan, which aims to tack­le hous­ing inequal­i­ty by increas­ing invest­ments in afford­able, ener­gy-effi­cient homes. This ini­tia­tive is of par­tic­u­lar impor­tance to the EPS indus­try, which plays a cru­cial role in insu­lat­ing build­ings and improv­ing their ener­gy effi­cien­cy. As part of this plan, von der Leyen has pro­posed col­lab­o­rat­ing with the Euro­pean Invest­ment Bank to cre­ate a pan-Euro­pean invest­ment plat­form that will attract pri­vate and pub­lic funds for afford­able and sus­tain­able hous­ing. This will undoubt­ed­ly dri­ve-up demand for EPS insu­la­tion mate­ri­als, as ener­gy-effi­cient con­struc­tion is a core com­po­nent of the plan.

In addi­tion, von der Leyen announced that the Social Cli­mate Fund will sup­port home ren­o­va­tions, par­tic­u­lar­ly for vul­ner­a­ble groups, by pro­vid­ing finan­cial assis­tance to improve access to ener­gy-effi­cient hous­ing. This rep­re­sents anoth­er avenue for EPS man­u­fac­tur­ers to grow their mar­ket share, as Mem­ber States invest in hous­ing upgrades that reduce ener­gy con­sump­tion and pre­vent ener­gy pover­ty. EPS prod­ucts, known for their excel­lent insu­la­tion prop­er­ties, will be inte­gral to the suc­cess of these ini­tia­tives, ensur­ing homes remain warm in win­ter and cool in sum­mer while reduc­ing heat­ing and cool­ing costs.

Impor­tant­ly, von der Leyen has also pro­posed a revi­sion of EU State aid rules to sup­port hous­ing invest­ments. This revi­sion will make it eas­i­er for gov­ern­ments to pro­vide finan­cial assis­tance for hous­ing projects that incor­po­rate ener­gy-effi­cient mate­ri­als like EPS. By align­ing with these pol­i­cy changes, the EPS indus­try can rein­force its posi­tion as a leader in sus­tain­able build­ing solutions.

 

Strength­en­ing Europe’s Com­pet­i­tive­ness and Innovation

Von der Leyen’s agen­da places a strong empha­sis on com­pet­i­tive­ness, espe­cial­ly through inno­va­tion and dig­i­tal­i­sa­tion, which are cru­cial for main­tain­ing Europe’s lead­er­ship in glob­al mar­kets. For the EPS sec­tor, these pri­or­i­ties offer path­ways to strength­en pro­duc­tion process­es, reduce waste, and expand into new markets.

Dri­ving Inno­va­tion in EPS Manufacturing

The Euro­pean Com­mis­sion is com­mit­ted to increas­ing research and devel­op­ment (R&D) fund­ing, par­tic­u­lar­ly through the expan­sion of the Euro­pean Research and Inno­va­tion Coun­cil. This will pro­vide EPS man­u­fac­tur­ers with more oppor­tu­ni­ties to invest in inno­v­a­tive tech­nolo­gies that reduce ener­gy con­sump­tion, improve mate­r­i­al recy­cling, and cre­ate new appli­ca­tions for EPS. For exam­ple, research into low-car­bon pro­duc­tion meth­ods could enhance the industry’s sus­tain­abil­i­ty cre­den­tials and ensure it remains com­pet­i­tive in the face of stricter envi­ron­men­tal regulations.

Von der Leyen also high­light­ed the need for dig­i­tal trans­for­ma­tion in Euro­pean indus­tries. For the EPS sec­tor, dig­i­tal­i­sa­tion offers oppor­tu­ni­ties to opti­mise pro­duc­tion through smart fac­to­ries, where automa­tion and real-time data ana­lyt­ics can improve effi­cien­cy, reduce waste, and low­er costs. By embrac­ing Indus­try 4.0 tech­nolo­gies, EPS man­u­fac­tur­ers can future-proof their oper­a­tions and reduce their envi­ron­men­tal foot­print, align­ing with Europe’s broad­er sus­tain­abil­i­ty goals.

Sin­gle Mar­ket and Sim­pli­fied Regulations

A key part of von der Leyen’s vision is to deep­en the Sin­gle Mar­ket and sim­pli­fy reg­u­la­tions, cre­at­ing a more stream­lined busi­ness envi­ron­ment across the EU. This will be achieved through a new Euro­pean Pros­per­i­ty Plan, which will cut red tape and har­monise reg­u­la­tions, reduc­ing bureau­cra­cy and extra rules that our mem­bers would wel­come. This will make it eas­i­er for busi­ness­es to oper­ate across bor­ders. For EPS man­u­fac­tur­ers, this will mean eas­i­er access to new mar­kets, par­tic­u­lar­ly as demand for ener­gy-effi­cient con­struc­tion mate­ri­als is like­ly to grow in the next few years, in response to the EU’s cli­mate and hous­ing policies.

The Pres­i­dent also announced efforts to sim­pli­fy envi­ron­men­tal reg­u­la­tions under the Cir­cu­lar Econ­o­my Act. This leg­is­la­tion will cre­ate a sin­gle mar­ket for sec­ondary mate­ri­als, encour­ag­ing the use of recy­cled mate­ri­als in con­struc­tion and pack­ag­ing prod­ucts. This is espe­cial­ly rel­e­vant for the EPS indus­try, which has already made sig­nif­i­cant strides in recy­cling poly­styrene mate­ri­als. By fos­ter­ing demand for recy­cled EPS and ensur­ing that waste man­age­ment reg­u­la­tions are har­monised across the EU, the Cir­cu­lar Econ­o­my Act will help man­u­fac­tur­ers cap­i­talise on the grow­ing demand for sus­tain­able pack­ag­ing and con­struc­tion solutions.

The pro­pos­al also includes a new Chem­i­cals Indus­try Pack­age, which aims to sim­pli­fy REACH reg­u­la­tions and pro­vide clear­er guide­lines on chem­i­cal use and waste man­age­ment. For EPS man­u­fac­tur­ers, this pack­age could help reduce admin­is­tra­tive bur­dens while ensur­ing com­pli­ance with envi­ron­men­tal stan­dards, par­tic­u­lar­ly in areas rel­e­vant to the indus­try. By stream­lin­ing these reg­u­la­tions, the pack­age will sup­port man­u­fac­tur­ers in main­tain­ing safe and sus­tain­able prac­tices with­out the com­plex­i­ty of addi­tion­al bureau­crat­ic hurdles.


Dan Jør­gensen Appoint­ed as Com­mis­sion­er for Ener­gy and Housing

Dan Jørgensen at the European Commission Berlaymont. September 2024As part of the new Euro­pean Com­mis­sion, Dan Jør­gensen from Den­mark has been appoint­ed as the Com­mis­sion­er for Ener­gy and Hous­ing. In this piv­otal role, Jør­gensen will be respon­si­ble for tack­ling crit­i­cal chal­lenges such as reduc­ing ener­gy prices, invest­ing in clean ener­gy, and decreas­ing the EU’s ener­gy depen­den­cies. Impor­tant­ly, he will also be the first-ever Hous­ing Com­mis­sion­er, tasked with over­see­ing the sec­tor’s ener­gy effi­cien­cy, invest­ments, and con­struc­tion activities.

Jør­gensen’s mis­sion let­ter out­lines sev­er­al key pri­or­i­ties for hous­ing, including:

  • Propos­ing the first-ever Euro­pean Afford­able Hous­ing Plan.
  • Devel­op­ing a Euro­pean strat­e­gy for hous­ing con­struc­tion, with a focus on reduc­ing build­ing costs, improv­ing work­force skills, and enhanc­ing envi­ron­men­tal per­for­mance in construction.
  • Launch­ing a pan-Euro­pean invest­ment plat­form for afford­able and sus­tain­able hous­ing in col­lab­o­ra­tion with the Euro­pean Invest­ment Bank.
  • Dou­bling the planned cohe­sion pol­i­cy funds to chan­nel more invest­ments into afford­able housing.
  • Revis­ing state aid rules to enable hous­ing sup­port measures.

To achieve these objec­tives, Jør­gensen will work close­ly with the Exec­u­tive Vice-Pres­i­dent for a Clean, Just, and Com­pet­i­tive Tran­si­tion, with the sup­port of the Direc­torate-Gen­er­al for Ener­gy and a new­ly estab­lished task­force on housing.

Jør­gensen’s appoint­ment brings his exten­sive expe­ri­ence in cli­mate and ener­gy pol­i­cy to the fore­front. Hav­ing served as Denmark’s Min­is­ter of Cli­mate and Ener­gy from 2019 to 2022, he played a cru­cial role in set­ting ambi­tious cli­mate tar­gets and advanc­ing the tran­si­tion from fos­sil fuels to wind ener­gy. His lead­er­ship in found­ing the Beyond Oil and Gas Alliance under­scores his com­mit­ment to sus­tain­able energy.


Tere­sa Rib­era Rodriguez, Jes­si­ka Roswall, Wop­ke Hoek­stra, and Vald­is Dom­brovskis: Key Fig­ures in Europe’s Green Transition

 Teresa Ribera RodríguezTere­sa Rib­era from Spain has been appoint­ed as the Exec­u­tive Vice Pres­i­dent (EVP) of a Clean, Just, and Com­pet­i­tive Tran­si­tion. In this influ­en­tial role, Rib­era will play a piv­otal part in shap­ing Europe’s envi­ron­men­tal and cli­mate poli­cies. She will be respon­si­ble for tak­ing final deci­sions on polit­i­cal­ly sen­si­tive issues and over­see­ing the over­all coor­di­na­tion of envi­ron­men­tal and cli­mate actions. Her lead­er­ship will be cru­cial in align­ing cli­mate tar­gets with eco­nom­ic com­pet­i­tive­ness, ensur­ing Europe main­tains its lead­er­ship in the green transition.

Jessika Roswall ecJes­si­ka Roswall, from Swe­den, will serve as the Com­mis­sion­er for Envi­ron­ment, Water Resilience, and a Com­pet­i­tive Cir­cu­lar Econ­o­my. Roswall will lead the Direc­torate-Gen­er­al for Envi­ron­ment (DG Envi­ron­ment), focus­ing on key envi­ron­men­tal issues, includ­ing pack­ag­ing, waste man­age­ment, and water resilience. Her role is cen­tral to advanc­ing the Euro­pean Union’s goals on cir­cu­lar econ­o­my ini­tia­tives, ensur­ing that Europe remains at the fore­front of sus­tain­abil­i­ty in key sec­tors like con­struc­tion and manufacturing.

Wopke Hoekstra ecWop­ke Hoek­stra, from the Nether­lands, has been appoint­ed as the Com­mis­sion­er for Cli­mate, Net-Zero, and Clean Growth. Hoek­stra will focus on lead­ing Europe’s cli­mate poli­cies, par­tic­u­lar­ly regard­ing emis­sions reduc­tion and clean growth ini­tia­tives. His lead­er­ship will direct­ly influ­ence cli­mate reg­u­la­tions that impact busi­ness deci­sions, ensur­ing that Europe con­tin­ues to move toward its ambi­tious net-zero emis­sions tar­gets while fos­ter­ing growth in clean ener­gy sectors.

Valdis Dombrovskis ecVald­is Dom­brovskis, from Latvia, will serve as the Com­mis­sion­er for Econ­o­my and Pro­duc­tiv­i­ty, Imple­men­ta­tion, and Sim­pli­fi­ca­tion. Known for his expe­ri­ence and senior­i­ty with­in the Euro­pean Com­mis­sion, Dom­brovskis will play a crit­i­cal role in ensur­ing that key envi­ron­men­tal and eco­nom­ic poli­cies are imple­ment­ed effec­tive­ly. His focus on sim­pli­fy­ing reg­u­la­tions will help busi­ness­es nav­i­gate the com­plex envi­ron­men­tal leg­is­la­tion, while his role in pro­duc­tiv­i­ty and eco­nom­ic per­for­mance will ensure that Europe remains com­pet­i­tive through­out its green transition.

These key appoint­ments sig­nal the Euro­pean Commission’s com­mit­ment to dri­ving for­ward its cli­mate and sus­tain­abil­i­ty agen­da, with each Com­mis­sion­er play­ing a vital role in ensur­ing a green­er, more com­pet­i­tive Europe.



In Sum­ma­ry: Ursu­la Von der Leyen’s Strat­e­gy for a Green­er, Stronger Europe

Ursu­la von der Leyen’s 2024–2029 Polit­i­cal Guide­lines present a bold vision for Europe’s future, offer­ing both chal­lenges and oppor­tu­ni­ties for the EPS indus­try. From the Clean Indus­tri­al Deal to the Euro­pean Afford­able Hous­ing Plan, these ini­tia­tives pro­vide a frame­work for EPS man­u­fac­tur­ers to con­tribute to Europe’s green tran­si­tion while main­tain­ing their com­pet­i­tive edge.

The Clean Indus­tri­al Deal will dri­ve invest­ment in clean­er tech­nolo­gies, allow­ing EPS pro­duc­ers to mod­ernise their oper­a­tions and reduce their envi­ron­men­tal impact. The afford­able hous­ing agen­da, sup­port­ed by the Social Cli­mate Fund, will increase demand for EPS insu­la­tion mate­ri­als as Mem­ber States invest in ener­gy-effi­cient hous­ing to reduce ener­gy poverty.

Addi­tion­al­ly, the Cir­cu­lar Econ­o­my Act and sim­pli­fied reg­u­la­tions will cre­ate new oppor­tu­ni­ties for the reuse of EPS mate­ri­als and stream­line cross-bor­der oper­a­tions with­in the Sin­gle Mar­ket. For EUMEPS mem­bers, align­ing with these pri­or­i­ties will be essen­tial in ensur­ing the EPS indus­try remains a leader in sus­tain­abil­i­ty and innovation.

New­ly intro­duced in this term, the Euro­pean Afford­able Hous­ing Plan sig­nals a sig­nif­i­cant pol­i­cy shift, plac­ing hous­ing secu­ri­ty at the fore­front of EU objec­tives. Though the spe­cif­ic Com­mis­sion­er respon­si­ble for over­see­ing this plan is yet to be announced, the plan high­lights the EU’s com­mit­ment to address­ing hous­ing inequal­i­ty. Cou­pled with the Social Cli­mate Fund and part­ner­ships with the Euro­pean Invest­ment Bank, the EPS indus­try can expect a surge in demand for ener­gy-effi­cient build­ing materials.

 

By stay­ing ahead of reg­u­la­to­ry changes, invest­ing in inno­va­tion, and embrac­ing sus­tain­abil­i­ty, EUMEPS mem­bers can help lead Europe’s tran­si­tion to a green­er, more resilient, and com­pet­i­tive future. Togeth­er, we can ensure that EPS remains a cor­ner­stone of Europe’s efforts to achieve its sus­tain­abil­i­ty and cli­mate goals.

AuthorIngrid Morin
Date12/09/2024