In the government of Pedro Sánchez, Teresa Ribera was minister of Asturias, as many of the great challenges of the Principality’s economy, and especially of its industry, passed through her hands. Now, after being appointed European Commissioner, with the position of Executive Vice President for the Clean, Fair and Competitive Transition, Ribera is once again at the center of the region’s interests. You are the commissioner of Asturias.
Coordinator of the Clean Industry Pact
The President of the European Commission, Ursula von der Leyen, has announced that in the frist 100 days of her new mandate she will present a Clean Industry Pact whose aim will be to increase the competitiveness of the European manufacturing sector while promoting, its decarbonization. Teresa Ribera will be in charge of coordinating work on the “Clean Industrial Deal”, which should help unlock investment, promote clean technologies and create the conditions for companies to grow and compete. The multinational steel company ArcelorMittal, the industrial company with the greatest weight in Asturias and on which 5,000 direct jobs depend, considers the content of this pact to be crucial. “Decisions made in the next twelve months will determine the future size and shape of the European steel industry,” warned Lakshmi Mittal, president of ArcelorMittal. The steel giant announced nearly two weeks ago that it would suspend its major decarbonization investments in Belgium,France,Germany and Spain as was to be expected political,technological and market advances did not materialize. Among the projects affected is the replacement of one of Gijón’s two blast furnaces with a direct iron ore reduction (DRI) plant using green hydrogen, the main element of the €1 billion plan to decarbonise iron production steel in Asturias and guarantee the future of the industry. the integral steel industry in the region. In her first act as vice-president of the European Commission, Teresa Ribera visited the ArcelorMittal steelworks in Ghent (Belgium), a gesture that the multinational steel company described as a ”positive sign”. Lakshmi Mittal stressed that DRI plant projects like the one in Gijón will be ”activated quickly” if the European Union adopts the correct policies so that the sector can compete on equal terms with other territories,especially with China and the United States. Ribera is responsible for these policies.
Energy price controller
The new executive vice president of the clean,Fair and Competitive Transition is also tasked with leading work to reduce energy prices,another crucial issue for the Asturian manufacturing sector. Large electricity-intensive and gas-intensive industry has a strong weight in the Principality, with large factories such as ArcelorMittal, Asturiana de zinc, Saint-Gobain, Fertiberia, Ence, corporación Alimentaria Peñasanta (Capsa), Industrias Lácteas Asturianas (Ilas ), Cementos Tudela Veguín, Bayer, Química del Nalón, Aluastur, Asturiana de Laminati… Energy prices have a strong impact on the results of these companies and were the key to the last industrial lock in Asturias, that of Alcoa. “50% of our cost of producing a ton of zinc is the price of electricity,” emphasized Víctor alonso, head of energy Management of Asturiana de Zinc, the largest electricity consumer, recently in a technical conference held in Oviedo from Spain. The large Asturian industry is burdened by electricity prices compared to its European competitors. According to the latest barometer of the Association of Enterprises with large energy consumption (AEGE), the final price per megawatt hour for large electricity-intensive industry in Spain (62.19 euros) is almost double that of Germany (34, 95 euros) and almost triple the french one (21.58 euros). The European Union has been permissive with the “discounts” applied by other countries and has placed obstacles to the “aid” that existed in Spain as an old interruptibility mechanism. Moving towards a single electricity market will be one of Ribera’s tasks, but above all ensuring that the abandonment of fossil fuels and the spread of renewables translates into a reduction in energy prices and that the use of new energy vectors, such as green hydrogen – with several production and consumption projects in Asturias, worth more than 1,600 million euros, according to estimates by the Asturian Energy foundation (FAEN), are achievable in terms of price.
Climate goals strategist
Ribera will be tasked with leading the work on implementing EU legislation to help achieve the 2030 climate targets and prepare a new strategy beyond 2030. The setting of these targets will depend, for example, on the role fossil fuels will play such as natural gas – in Asturias two combined cycles are operational in Soto de Ribera and one of the Aboño coal groups will be converted to gas -, the need or not to intensify aid and streamlining the procedures for the diffusion of renewable energy - still with little weight in Asturias -, the strengthening of energy transport and storage infrastructures – vital in the case of the Principality – or the modulation of the market for CO2 emission rights – with meaningful effects on the regional industry.
Administrator of the Just transition Fund
Directing investments and financing for a fair and social transition,through specific funds and fiscal measures,is another of Teresa Ribera’s main tasks and has a strong impact in Asturias. As a region strongly affected by decarbonisation due to the closure of mining activities and coal-fired power plants, Asturias is the autonomous community of Spain that benefits most from the Just Transition Mechanism, a support program for the period 2021-2027 which aims the main element known as Just Transition Funds, but which also includes a window to access aid from the “InvestEU” program and a new loan facility for the public sector financed by the EU Budget and European Investment Bank (EIB). In the Just Transition Funds alone, Asturias has allocated 263 million euros awaiting execution.Despite this, the Principality Government has asked for these funds to be extended beyond 2027 as the effects of decarbonisation will continue to weaken the territory.
Architect of the new state aid framework
another of Teresa Ribera’s responsibilities with a strong impact in Asturias will be to develop a new state aid framework to accelerate the deployment of renewable energy, promote industrial decarbonisation and ensure sufficient production capacity for clean technologies. with a new framework, aid could be intensified for strategic industrial decarbonisation projects in Asturias that are still pending, as in the case of ArcelorMittal for the Gijón and Avilés factories, or those of Bayer, Capsa or Ilas. It could also be crucial for the realization of large green hydrogen production projects, such as those of EDP, or for the development of offshore wind energy on the Asturian coast.
What are the key challenges facing the European steel industry as discussed by Teresa Ribera in the interview?
Interview between Time.news Editor and Teresa Ribera, European Commissioner for the Clean, Fair and Competitive Transition
Time.news Editor (TNE): Good day, Commissioner Ribera! Thank you for joining us.Your new role as Executive Vice President for the Clean,Fair and Competitive Transition is pivotal for Europe. Can you share what motivates you in this responsibility, especially regarding your hometown of Asturias?
Teresa Ribera (TR): Thank you for having me. Growing up in Asturias,I have always felt deeply connected to its industries and the people that rely on them.Transitioning towards a clean,competitive economy isn’t just a European goal; it directly impacts the lives and livelihoods of many in my region.I see this as an opportunity to drive innovative policies that ensure our industries can thrive while also preserving our surroundings.
TNE: The upcoming Clean Industry Pact has the potential to shape the future of European manufacturing. What are the key elements you believe are vital for its success?
TR: The Clean Industry Pact is about unlocking investment and promoting clean technologies. A critical element will be collaboration between governments,industries,and research institutions to foster innovation.Additionally, we need to create a level playing field that allows European companies, like ArcelorMittal in Asturias, to compete globally, especially against major players like China and the United states.
TNE: Lakshmi Mittal has raised concerns regarding the need for decisive actions within the next twelve months to secure the future of the European steel industry. What strategies are in place to address these concerns and ensure investments in decarbonization proceed?
TR: Mr. Mittal’s concerns are valid, and they resonate across the industry. We are accelerating the advancement of the right policies that will incentivize companies to invest in projects like the DRI plant in Gijón. By streamlining regulations and providing financial support, we aim to make decarbonization within Europe not just necessary, but feasible and attractive for businesses.
TNE: Energy prices have been a hot topic,especially for energy-intensive industries in Asturias. What measures will you implement to help control these rising costs?
TR: Addressing energy prices is crucial for the competitiveness of our industry. We are actively working on strategies to reduce energy costs for large consumers. This includes advocating for reforms on the energy market and looking at diversifying our energy sources. by promoting renewable energy and efficient technologies, we can lower overall prices and ensure that industries like Asturiana de Zinc can continue to operate sustainably.
TNE: Could you elaborate on the relationship between energy prices and industrial sustainability, particularly in light of recent challenges faced by companies like alcoa?
TR: The impact of energy costs on industries cannot be overstated. for instance, Alcoa’s recent industrial lockout exemplifies how unsustainable prices can jeopardize operations and jobs. We need to strategize not only to lower these costs but also to incentivize industries to adopt more energy-efficient technologies. this dual approach will enhance sustainability while ensuring that these companies remain viable in a competitive european landscape.
TNE: Lastly, what message would you like to convey to the people of Asturias and other European regions that are looking for clarity and hope in these transformative times?
TR: My message is one of commitment and collaboration. I understand the uncertainties that come with transition, but I assure you that our focus is on creating robust frameworks that support industries, jobs, and a greener future. It’s crucial that we work together to embrace innovation while preserving what makes our regions unique. I am here to fight for the interests of Asturias and contribute to a viable and sustainable Europe.
TNE: Thank you, Commissioner Ribera. Your insights provide valuable clarity on the path ahead for Asturias and the broader European manufacturing landscape.
TR: Thank you! It’s been a pleasure discussing these important matters with you.