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Energy prices and climate change: how to strengthen the EU’s competitiveness

The recent energy crisis has intensified the competitive pressure on European businesses, particularly in the hard-to-abate sectors. European industry is now at risk of losing its worldwide market share to competitors with lower production costs and, on average, much higher carbon intensity. Uncompetitive European energy prices, which are projected to remain higher than our major competitors over the coming decades, are playing a major part in this decline. The result is a fundamental risk to our long-term competitiveness and Europe’s ability to invest in the transition to a low-carbon economy.

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