January 15, 2026 Updated: January 15, 2026

Why Europe’s path to decarbonization demands attention now, and where to find the right insights

The road to decarbonization is rarely straightforward. European industries are under increasing pressure to reduce emissions while remaining competitive in a rapidly changing global landscape. Rising energy costs, tightening regulation, and international competition are accelerating the need for clear strategic choices. At the same time, the transition offers unprecedented opportunities for innovation, growth, and long-term resilience.

Decarbonization is a business reality

Decarbonization is no longer a distant ambition; it is an urgent business reality. The EU’s climate targets for 2030 and 2050 require industrial players to act now, rethink their production processes, and invest in breakthrough technologies. Delaying action not only increases climate risks, but also exposes companies to regulatory, financial, and market disadvantages.

To support this transformation, the European Union has put a comprehensive policy and funding framework in place. Instruments such as the EU Emissions Trading System (EU ETS) create a clear price signal for carbon, while the Carbon Border Adjustment Mechanism (CBAM) aims to protect European industry from carbon leakage and ensure fair competition. Together with the EU Green Deal package, these measures are reshaping the industrial playing field and setting a clear direction of travel.

The EU offers support

Crucially, regulation is paired with support. The Innovation Fund plays a central role in enabling large-scale deployment of low-carbon and net-zero technologies, helping companies bridge the gap between innovation and commercialization. In addition, the European Investment Bank (EIB) provides technical and financial assistance to de-risk projects and mobilize private investment. EU-funded initiatives such as DIAMONDS4IF and the LEADS CCUS Project further illustrate how collaboration, knowledge-sharing, and targeted funding can accelerate impact.

Highly informative discussion with two of our top IF experts.

These themes take center stage in the last “Let’s Talk Business” episode on New Business Radio, hosted by Ron Lemmens at the end of November ‘25. In this discussion, Thomas Maidonis and Barbara Bendaoud, two of PNO Innovation’s top Innovation Fund experts, share their insights on Europe’s industrial transformation and the strategic choices companies must make to become carbon neutral. Drawing on hands-on experience with EU funding instruments and flagship projects, they discuss both the challenges and the concrete opportunities available to forward-looking organizations.

For anyone navigating the complexities of decarbonization, or looking to turn sustainability ambition into a competitive advantage: this conversation offers valuable perspective. We highly recommend tuning in and gaining first-hand insights into how Europe’s policy framework can support your journey toward a carbon-neutral future.

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