The European Commission’s competitiveness agenda is underway, with several new initiatives published on 26th February. Social Platform is concerned that these initiatives look to prioritise the interests of big business over people – an approach also reflected in the consultation process with civil society largely excluded in favour of industry representatives.
With these concerns in mind, Social Platform has outlined our analysis below of: The Clean Industrial Deal, the European Commission’s new strategy aiming to combine competitiveness with decarbonisation; the accompanying Affordable Energy Action Plan, to help industry and consumers with energy prices in a bid for further competitiveness; and the Omnibus proposal, intended to boost competitiveness through “simplification” and “cutting red tape” for businesses.
Our bottom line, people, not business, must be at the heart of the EU’s decarbonisation and industrial strategy.
The Clean Industrial Deal
The Clean Industrial Deal is making the same mistakes as the European Green Deal originally did in the previous mandate. The European Green Deal, whilst bringing about important climate measures and establishing the EU as a leader in climate ambition, did not adequately consider the social impacts of green initiatives from the outset. In order to achieve a just transition, the socio-economic effects of climate and industrial policies must be considered adequately. Social Platform has advocated for a European Green and Social Deal, now we call for a Clean and Social Industrial Deal to ensure that no one is left behind in the green industrial transition.
The Clean Industrial Deal’s approach to just transition is far too narrow, focusing primarily on jobs and skills while failing to address the broader social and economic inequalities that industrial transitions can exacerbate. The just transition section appears detached from the rest of the communication, treated as an add-on rather than being fully integrated across all initiatives. There are no legally binding measures to ensure fairness. Despite stating that ways to improve the delivery of the Just Transition Fund will be explored, the Clean Industrial Deal makes no commitment to increasing its funding or even ensuring its continuation in the next MFF (Multiannual Financial Framework). Moreover, there is no commitment to any additional funding for the just transition, even though this was announced in the Political Guidelines for the Next European Commission 2024-2029 published last year.
The Clean Industrial Deal does take some positive steps by acknowledging the need for fair workforce transitions, quality jobs, and skills development. The Union of Skills and the forthcoming Quality Jobs Roadmap showcase that the European Commission is putting effort into the needs of workers in the industrial transition. The European Fair Transition Observatory, which will be established next year to carry out research on fairness aspects of the green transition, is also a welcome measure. The recognition of the importance of social conditionalities in public funding, especially in the context of the upcoming evaluation on the Public Procurement Directive, is another positive aspect. The communication states that the European Affordable Housing Plan will be adopted by the Commission, although it is not clear when this will happen or what it will entail. Additionally, the Clean Industrial Deal states that the EC will provide Guidance to Member States on social leasing of clean products, which is a step towards ensuring low-income groups can benefit from the green transition without being disproportionately burdened financially. Whilst these are positive initiatives, they are not enough.
Social Platform agrees with the Clean Industrial Deal document’s claim that “competitiveness must build upon existing social achievements and the EU’s social model to achieve an inclusive and fair green transition.” However, the Clean Industrial Deal portrays just transition primarily in the frame of jobs and skills, ignoring the wider social and economic inequalities that the industrial transition can intensify. A comprehensive EU Just Transition Policy Framework is urgently needed, drawing on the 2022 Council recommendation on ensuring a fair transition towards climate neutrality, going beyond employment and encompassing social protection, strong public services, civil society participation, adequate financing, support for the social economy, and inclusive policies. The EU must ensure that the costs and benefits of the green industrial transition are fairly distributed across society, protecting not just workers going through reskilling, but also low-income and marginalised groups.
The emphasis on skills development and workforce transitions assumes that all displaced workers will be able to retrain and re-enter the labour market. However, this does not reflect the reality of many workers, particularly older workers, those in precarious employment, and those in sectors where alternative opportunities are limited. Reskilling alone is not enough, the EU must advocate for social protection, sufficient social safety nets, and access to essential services for those who struggle to find new employment. There is no clear commitment to addressing structural inequalities, such as the disproportionate impact of transitions on for example low-income groups, women, and marginalised communities. Without concrete measures to support those most affected, there is a real risk that many will be left behind, deepening social inequalities and undermining public support for climate and industrial policies. A strong welfare state is crucial to ensuring no one is left behind when communities go through industrial transitions.
The Clean Industrial Deal lacks a mention of meaningful civil society participation in shaping and monitoring the transition. While it references social partners, it does not clearly define a role for civil society organisations, which represent marginalised groups and communities most affected by transition policies. The social economy is also absent from the document, missing an opportunity to align industrial transition with inclusive economic models that prioritise social and environmental objectives alongside competitiveness. Social economy actors can offer training and employment to marginalised groups and support workers in industries most affected by the transition.
There is a complete absence of the role of the European Pillar of Social Rights (EPSR) in implementing the Clean Industrial Deal, which is particularly notable given the revision of its Action Plan coming up this year. The EPSR is the EU’s key framework for social rights and fairness, setting out principles to ensure equal opportunities, fair working conditions, social protection, and inclusion. Any serious commitment to a just transition should be firmly anchored in the implementation of the EPSR, yet the Clean Industrial Deal fails to even mention it. As the Commission prepares to revise the EPSR Action Plan, this was a critical opportunity to reinforce the connection between green, industrial, and social policy, yet that opportunity has been missed. The Clean Industrial Deal is making the same mistakes as the European Green Deal did by not adequately considering the social dimension from the outset.
Mention of the European Semester process is also absent, missing an opportunity to ensure that industrial policy is aligned with the EU’s broader social and economic objectives and coordination. The Clean Industrial Deal also follows a business-as-usual approach by emphasising economic growth and productivity. Instead, beyond-GDP measures and well-being economy models should be considered to address the current polycrisis at the intersection of climate, environment, social, and economic concerns.
The Clean Industrial Deal has some positives, but it remains too narrowly focused on jobs and skills. Without a more ambitious and people-centred approach, the green industrial transition risks deepening social inequalities rather than ensuring a truly fair and inclusive transition. The EU must take this opportunity to achieve a just transition that benefits everyone, not just those who can adapt to new jobs, but all people and communities impacted by industrial change. Social Platform calls for a Clean and Social Industrial Deal to ensure that social rights are not sidelined in industrial policy. The Clean and Social Industrial Deal must explicitly align with the EPSR and contribute to achieving its targets, ensuring that Europe’s green industrial transition does not come at the expense of social justice.
The Affordable Energy Action Plan
The Affordable Energy Action Plan was published with the Clean Industrial Deal aiming to support competitiveness and decarbonisation in the EU by lowering energy prices. The Plan takes some welcome steps by committing to reducing energy taxes, promoting flexible billing options for households and for accelerating renewable energy. As energy poverty affects over 46 million people in Europe, the need for targeted support to ensure affordable energy for groups in vulnerable situations is urgent. The announcement of the Citizens’ Energy Package for Q3 2025 holds promise, as it could strengthen the social dimension of the Energy Union and help consumers switch to more affordable energy suppliers. However, these measures remain limited in scope.
A shortcoming of the Action Plan is its strong focus on energy-intensive industries, which risks overshadowing the urgent need for direct public investment in protecting the most vulnerable households. Lowering taxation is an important measure to provide temporary relief, however it does not address the root causes of high energy costs for low-income groups, such as inefficient housing and lack of access to affordable renewable energy. Structural reforms should be prioritised such as investment in social housing renovation, ensuring that the least efficient homes are upgraded to meet energy efficiency standards. Without such action, millions of Europeans will remain trapped in energy poverty, struggling to afford basic heating and electricity.
For the Affordable Energy Action Plan to truly deliver on the promise of a just transition, it must be embedded within a broader EU Just Transition Policy Framework. A comprehensive approach would ensure that social protection, housing renovations, and community-led energy initiatives receive the same level of attention and investment as industrial competitiveness. Furthermore, the EU should commit to phasing out fossil fuels completely, without which we will never achieve the just transition we need. Energy poverty is a social justice issue, and tackling it requires a commitment to long-term, structural solutions that put people at the centre of the clean energy transition.
Omnibus proposal
Finally, the Omnibus proposal, presented as a means to cut red tape and enhance competitiveness, is extremely contradictory to the section on just transition in the Clean Industrial Deal. The Omnibus packages raise significant concerns regarding their impact on social and environmental safeguards. If the Clean Industrial Deal claims it will protect the rights of workers, the blatant deregulation attempts of the Omnibus will only weaken these rights. While there is need to ensure that regulatory requirements do not disproportionately burden small businesses, the proposed measures risk significantly weakening corporate accountability and transparency. These changes undermine key legislation designed to protect human rights and environmental standards and demonstrate that the European Commission wishes to shift away from corporate social responsibility.
One of the most alarming aspects of the proposal is the scaling back of the Corporate Sustainability Due Diligence Directive (CSDDD). By limiting the due diligence requirements to direct business partners rather than the entire supply chain, the Commission is reducing corporate responsibility for human rights and environmental violations. Various violations often happen throughout the supply chain and this deregulation would allow businesses to close their eyes from potential abuses. Civil liability has been scrapped in the proposal, along with penalties for non-compliant companies which were set at a minimum of 5% of their global turnover. Currently the CSDDD requires Member States to ensure that companies can be held liable under civil law, but the Omnibus would remove this requirement. Additionally, the decision to extend compliance deadlines and reassess risks only every five years instead of every year significantly weakens the directive’s effectiveness in preventing harm.
Similarly, the revisions to the Corporate Sustainability Reporting Directive (CSRD) present a major setback for transparency. By exempting 80% of companies from reporting obligations, limiting these requirements to companies with over 1000 employees, the EU is effectively allowing vast portions of the corporate sector to operate without accountability. This rollback will make it harder for investors, civil society organisations, and policymakers to assess corporate sustainability efforts. The removal of sector-specific reporting standards also reduces the ability to track and compare sustainability performance across industries. The narrowing of the EU taxonomy’s scope and the significant reduction in required reporting risk weakening the classification system meant to guide sustainable finance. Furthermore, backpedalling on sustainability regulations ultimately penalises the responsible businesses that have already invested resources to comply with the various regulations.
Competitiveness should not come at the expense of environmental and social protections. A truly sustainable European economy must integrate social and environmental responsibility into its core rather than treating them as obstacles to be minimised. The Omnibus proposal represents a step in the wrong direction by prioritising deregulation over long-term resilience and fairness. Instead of weakening due diligence, transparency, and accountability measures, the European Commission should focus on ensuring that businesses, especially large corporations, contribute positively to social progress, workers’ rights, and environmental sustainability. The European Parliament and Council of the EU have already voted in favour of delaying the start of the CSRD and CSDDD reporting as was proposed by the European Commission. The rest of the Omnibus proposal is still set to be voted through by the European Parliament and the Council of the EU, who now have a responsibility to ensure that the EU balances its commitment between reducing administrative burdens and upholding its commitment to a just transition that benefits people and the planet.
Conclusion
The EU’s new competitiveness agenda prioritises economic growth and productivity while sidelining the social and environmental dimensions that are crucial to achieving a just transition. The Clean Industrial Deal fails to fully integrate just transition across its initiatives, reducing it to a narrow focus on jobs and skills while neglecting structural inequalities. Without legally binding measures or sufficient funding, it risks leaving behind groups in vulnerable situations such as low-income and marginalised communities. A Clean and Social Industrial Deal is needed to ensure fairness in the green industrial transition. The Affordable Energy Action Plan takes some welcome steps towards lowering energy costs, but its strong focus on industry overshadows the urgent need for structural solutions to energy poverty, such as social housing renovations and direct public investment in vulnerable households. Meanwhile, the Omnibus proposal represents a dangerous step backwards, prioritising deregulation over corporate accountability and sustainability, weakening vital safeguards meant to protect workers, human rights, and the environment.
Competitiveness must not come at the expense of fairness, inclusion, and sustainability. Europe’s real strength lies in its social model and green ambitions. A thriving economy requires both a thriving planet and thriving people. The EU urgently needs a comprehensive Just Transition Policy Framework, that builds on the 2022 Council recommendation on ensuring a fair transition towards climate neutrality, encompassing social protection, strong public services, worker’s rights, civil society participation, adequate financing, support for the social economy, and inclusive policies. The EU must bring the Just Transition to the centre of its agenda, ensuring that no one is left behind in the green industrial transition and pursuit of competitiveness.
