Brief analysis 12: Austria’s potential for a more climate-friendly industry
Mag. Dr. Wolfgang Schwarzbauer
Chief Financial Officer and Chief Human Resources Officer, Head of Regional Economic Policy and Foreign Trade Research
In addition to overcoming the current COVID-19 crisis, global climate change is probably one of the key challenges of the future. In Europe in particular, efforts have been intensified in recent years (e.g. European Green Deal, etc.). Production, and industry in particular, is a significant emitterof CO2 emissions and therefore faces particular challenges. This also applies to Austria, where industry plays an important role, especially for foreign trade. In order to sustainably reduceCO2 emissions and at the same time further develop industry in Europe, the European Union has set itself the goal of supporting innovative individual projects and thus strengthening and expanding strategically relevant European value chains (Important Projects of Common European Interest, IPCEIs) in the future, including in the area of "LowCO2 Emissions Industry".
In general, it can be observed that Austria is highly specialized in international trade in some industrial sectors. Pronounced specialization can also be observed in highlyCO2-intensive industrial sectors (see figure below). This applies, for example, to metal production and processing, the manufacture of other non-metallic products and the paper industry. A European comparison shows that other European countries such as Germany, Italy, the Czech Republic and Slovakia are less specialized inCO2-intensive industries.
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The strong specialization in someCO2-intensive sectors is not necessarily a disadvantage per se. Rather, Austria's position is a good starting point for improving existing production processes, as it has the relevant know-how in the respective sectors and a favorable international competitive position. This can be advantageous both in the development of new product specializations (e.g. new vehicle drive systems) and in the more sustainable design of existingCO2-intensive production processes. For example, products from theCO2-intensive metal production and processing sector will continue to be in demand internationally in the future; the only question is where and with whatCO2 intensity they will be manufactured. On the one hand, maintaining the existing specialization advantage here is key for Austria. On the other hand, Austria is also better suited to developing lessCO2-intensive production processes than countries without a corresponding specialization.
Against the background of Austria's high degree of specialization inCO2-intensive sectors, it would therefore be welcome for Austria to participate in the IPCEI LowCO2 Emissions Industry. Supporting industry in the innovation and optimization of production can help to ensure that the international competitive advantages that Austrian companies have in someCO2-intensive sectors can be maintained or even expanded in the future. In addition, the know-how gained through possible participation in the IPCEI can also have a positive impact via cross-company and regional spillover effects, strengthen the business location and ultimately attract further companies, according to the conclusion of a brief analysis published today by EcoAustria.
