State of the Union 2025: Industry and Energy Efficiency in Focus
President von der Leyen’s most recent State of the Union stressed that Europe’s independence depends on strong, resilient industries. For energy-intensive sectors, improving efficiency and accelerating decarbonisation are central to that goal.
In her 2025 State of the Union address, European Commission President Ursula von der Leyen delivered a clear message: Europe’s independence will depend not only on its diplomacy and defence, but also on the transformation of its industry.
“This must be Europe’s Independence Moment,” she said, warning that global dependencies on energy, raw materials, and technology are increasingly being used as geopolitical tools. For Europe, this means reducing reliance on imports, building resilience in strategic sectors, and ensuring that energy-intensive industries can remain competitive while moving towards decarbonisation.
Energy-intensive industries at the core
Von der Leyen stressed the importance of key industries such as steel and chemicals: sectors that are essential to many value chains across Europe but that also face rising costs, competition, and pressure to decarbonise. She announced targeted initiatives designed to address these challenges, such as a new long-term trade instrument to replace the expiring steel safeguards, to ensure that European steelmakers investing in low-carbon technologies are not undermined by global overcapacity and imports produced under less stringent conditions; and a “made in Europe” criterion in public procurement, incentivising demand for European products, supporting the European market (particularly in clean tech), and ensuring materials are available in Europe, leading to a circular economy.
These measures complement broader policies such as the Clean Industrial Deal, the Industrial Accelerator Act, and the continued roll-out of the Net Zero Industry Act. Together, they aim to secure the conditions for Europe’s industries to decarbonise while protecting jobs and competitiveness.
The role of energy efficiency
Energy efficiency featured prominently in von der Leyen’s vision of Europe’s industrial independence. Reducing energy demand in process industries not only cuts emissions but also lowers costs and strengthens resilience against volatile fossil fuel markets.
This is at the heart of SET-IndEU, which supports the SET Plan Implementation Working Group on Sustainable and Efficient Energy Use in Industry (IWG-Industry). By fostering dialogue between Member States, industry stakeholders, and researchers, SET-IndEU helps align national and European R&I priorities to accelerate progress on industrial energy efficiency.
Linking Policy to Practice
Von der Leyen’s speech also underlined the importance of implementation. Announcing new instruments is only one part of the equation; success will depend on coordinated action between policymakers, industry, and research. SET-IndEU plays a crucial role in this by monitoring progress on the activities outlined in the IWG-Industry Implementation Plan; facilitating synergies with other SET Plan Working Groups and European Technology and Innovation Platforms (ETIPs); and engaging stakeholders from across the energy-intensive industry community to identify bottlenecks and co-design solutions.
Independence Through Industrial Transformation
For Europe, industrial policy is no longer just about competitiveness, it is about resilience and independence in a rapidly changing global context. Von der Leyen’s address made it clear that Europe cannot afford to rely on imports of critical materials, steel, or batteries to fuel its economy. Instead, it must invest in clean technologies, strengthen its circular economy, and ensure that energy efficiency is central to industrial transformation.
SET-IndEU will continue to support this shift by advancing sustainable and efficient energy use in industry, ensuring that process industries remain a strong and secure foundation for Europe’s economy.
