The letter sets out reasons for the looming crisis, including:
Crumbling competitiveness
It says: “Investing in Europe was once the most normal thing in the world. Europe represents a huge market with ample knowledge, capital and excellent facilities.
“In recent years, however, its competitive position for industrial investment has started to crumble.
“Energy costs have risen sharply, labour is scarce and, on top of that, European markets are increasingly flooded by cheaper products from other parts of the world.”
Costly clean tech
Alarmingly, the report warns that European companies can rarely improve their competitive position by investing in sustainability.
It says: “This is because, barring exceptions, investments in cleaner technology increase production costs and selling prices. As a result, sustainable frontrunners in particular are pricing themselves out of the market, leaving the European industry stuck.”
With its business model under pressure, the industry is therefore unable to pay the additional costs of sustainability out of its own pocket.