Green and Competitive: Can Europe have both?

The distinguished panel discussion, "Green and Competitive? Can Europe have both?", convened leading experts to explore the balance between environmental responsibility and economic competitiveness. Organised by the European Forum Alpbach (EFA) in collaboration with the Liaison Office of the European Parliament, this event formed a key part of EFA365.

Opening the discussion, Othmar Karas, President of the EFA, emphasised the need for a clear and ambitious European strategy—one that combines sustainability and competitiveness instead of treating them as opposing forces, ensuring a strong and prosperous future for the continent.

At the heart of the discussion was the pressing question: how can Europe successfully transition to a climate-neutral economy while maintaining its economic strength on the global stage?

Under the moderation of Bernhard Ecker (Trend), the panel featured Mairéad McGuinness, Co-Chair of the EFA Strategic Advisory Council and former EU Commissioner for Financial Services, Lena Schilling, Member of the European Parliament for the Greens, and Karl W. Steininger, Professor of Climate Economics and Sustainable Transformation. Addressing an engaged audience of nearly 150 participants, the speakers examined both the complexities and opportunities of Europe’s sustainable transformation.

A central theme of the discussion was how Europe can safeguard its economic competitivness while pursuing ambitious climate goals. The conversation underscored that sustainability should not be perceived as an economic burden, but rather as an engine for innovation and long-term competitiveness.

Othmar Karas cautioned that postponing the green transition would not strengthen the European industry but instead undermine its global standing. He stressed that sustainability and competitiveness must be viewed not as conflicting forces, but as mutually reinforcing drivers of economic progress.

Mairéad McGuinness warned against the perils of over-regulation, arguing that excessive bureaucracy could restrain business growth and innovation. “Let's be more pragmatic. There is a problem and we can address it.,” she noted. Europe’s economic resilience, she argued, will depend on a deliberate blend of policy incentives and technological breakthroughs.

The panellists agreed that Europe finds itself in global competition, particularly against economic powerhouses such as China and the United States.

Lena Schilling emphasised that energy independence will be pivotal to Europe’s long-term stability. “We need large-scale investment in renewable energy to break free from our dependence on fossil fuels once and for all,” she asserted.

A recurring topic was the critical role of clear and consistent policy frameworks in mobilising investment in sustainable technologies. The discussion highlighted key initiatives such as the EU Green Deal, carbon pricing mechanisms, and financial incentives for green innovation.

Karl W. Steininger emphasised that markets thrive on clarity. Without well-defined and predictable regulations, businesses will struggle to commit to the long-term investments necessary for a sustainable transition. At the same time, he underscored the global competitiveness of European innovation, particularly in circular economy solutions.

The discussion also addressed Austria’s unique position. As a nation with a robust industrial base and a high share of renewable energy, Austria is well-placed to take a leading role in Europe’s sustainable transformation. However, challenges remain, particularly in scaling investment in green technologies and securing public support for climate policies.

Steininger highlighted Austria’s pioneering position in certain key technologies, such as wood recycling, and underscored the urgency of action. “The climate crisis forces us to make a choice: we can either shape the future or be shaped by it. The green transition is not just a necessity—it is an chance to create a sustainable and globally competitive Europe.”

The event is part of the EFA365 initiative, where the European Forum Alpbach organises discussions throughout the year in Vienna, Berlin, Brussels, and other cities. The goal is to deepen key security policy topics continuously, preparing for the Forum's debates in August.

The Climate and Finance & Economy Tracks at the European Forum Alpbach 2025 will also focus on the topics of the event as they cover questions of competitiveness, collaboration, and economic opportunities needed to reach the EU's climate targets.

These are the topics of the Finance & Economy Track at the EFA25:

• Europe in the World Days: Innovation as Europe's Competitive Edge in Global Transformations
  
• Austria in Europe Days: Regaining Competitiveness: A Call for Action

These are the topics of the Climate Track at the EFA25:

• Europe in the World Days: Collaborate to Compete: Making the Climate Transformation Real
• Austria in Europe Days: United in Emergency: Towards a Stronger Climate and Energy Union

Under the theme “Recharge Europe,” the European Forum Alpbach (EFA) will use its 80th anniversary in 2025 as a starting point for tangible visions. “Europe is currently experiencing more simultaneous crises than it has since 1945. That is why we need a bold vision that makes Europe more competitive, more capable, and more innovative,” explains EFA President Othmar Karas about the 2025 theme. “Under the motto Recharge Europe, we want to equip Europe with new energy for the upcoming challenges, so that the EU can once again take a leading global role.”