Despite Europe's deep political commitments to net zero, 65% of industry executives surveyed by the Energy Industries Council (EIC) say poor policy and governance are putting the region’s competitiveness at risk.
Just 59% of continental energy companies reported revenue growth in 2024, the lowest rate among all global regions surveyed in the EIC’s ninth annual Survive & Thrive report.
“Europe has the net zero vision but not the execution,” said Stuart Broadley, CEO of the EIC, the world's leading trade association for companies providing products and services to the energy industry. “Without cheaper energy and faster approvals, it will keep losing ground to the US and Middle East.”
Germany, the long-reigning industrial engine of Europe, is now becoming the example others are keen to avoid. Once hailed as the world’s export powerhouse, it’s now at risk of becoming, in the words of one respondent, “the lame duck of Europe.”
Executives aren’t just worried about cost structures or short-term pressures. They’re calling for something far more fundamental: a 20-year industrial strategy that brings clarity, investment, and continuity.
“There is a lack of direction,” one report participant said. “Address the lack of a 20-year vision.”
That concern is resonating across borders -- from France to the Nordics. Respondents warn that deindustrialisation is no longer a distant threat. It’s happening now, in slow motion, as companies lose confidence, talent drains away, and foreign investment looks elsewhere.
According to the report, Europe’s regulatory burden, high energy costs, and a lack of cohesive planning are dragging on agility.
“Collaboration saved Europe’s oil and gas sector,” Broadley said. “Now it must repeat that for clean energy, or face deindustrialisation.”
Only 29% of European firms surveyed identified innovation and technology as a priority growth strategy, despite widespread acknowledgment that clean tech and AI are critical to the continent’s energy future.
The problem isn’t intent. It’s execution. Companies say bureaucracy slows down permitting, public investment remains cautious, and many academic institutions are disconnected from market needs.
“Help universities to stimulate innovation—they are in trouble now,” one executive said. Another added, “Motivate innovation, not just ICV [in-country value] and low cost.”
Stuart Broadley, CEO of the EIC
Despite the mounting concerns, 70% of continental energy firms are forecasting growth in 2025. But European growth lags behind other markets. Middle East firms reported 68% revenue growth in 2024 versus the year before, US companies 20, UK firms 16% and 8% for APAC.
European businesses say future gains will depend heavily on faster permitting, regional collaboration, and long-term industrial incentives.
For now, Europe still has world-class expertise, technology, and infrastructure. What it needs, respondents say, is confidence—fuelled by policy clarity and decisive public-private coordination.
“Europe doesn’t need to copy the US or Middle East,” Broadley said. “It needs to remember how it used to lead, and back itself again.”
Across the 140 global energy firms surveyed across five regions (Americas, UK, Europe, Middle East and APAC), 2024 was a record-breaking year for energy firms, with 77% of companies reporting growth and an average surge of 24% in revenue—matching last year’s record. But that momentum came with blind spots.
Only 6% of companies, across all regions, pursued new export markets, energy transition revenues dropped from 9% to 5%, and 91% of firms stayed focused on oil and gas. Even digital strategies fell short: 60% used AI, but just 9% linked it to growth.
For more information and to view the full report, please visit the following link: https://www.the-eic.com/MediaCentre/Publications/SurviveandThrive