Consolidated sectors in the Basque economy such as construction, the energy industry and the automotive industry are those best positioned, together with other emerging sectors such as ICT, mobility, the bioeconomy and the circular economy

According to the study, opportunities to improve business competitiveness arise in consolidated sectors of the Basque economy, such as construction, energy-intensive industry, the energy sector and the automotive industry. This is also the case in other sectors, value chains or emerging activities that are gaining in knowledge and strengths, such as the circular economy (new materials, eco-design, waste management), ICT, sustainable mobility and the bioeconomy, among others.

The way for companies to increase competitiveness based on the sustainability of products, services and processes is to adopt new business strategies aimed at increasing efficiency in the consumption of materials and energy, to implement specialisation and differentiation strategies based on sustainable products and services and to diversify value propositions with new products and services through new business models.

The report concludes that the Green Deal offers the Basque Country a unique opportunity to make progress with its smart specialisation strategy

The report states that “the European Green Deal offers the Basque Country a unique opportunity to make progress with its smart specialisation strategy, integrating sustainability (a reduced environmental footprint) as an essential tool to increase the competitiveness of both companies and the economy as a whole. To this end, swift action must be taken in order to secure the positioning of Basque industry (and other emerging sectors) in relation to competitors and consumers in order to highlight all the strengths of the business and institutional fabric of the Basque Country”.

The work has been carried out as part of a collaboration agreement between Orkestra-Basque Institute of Competitiveness and Ihobe-Public Environmental Management Agency, with the aim of analysing the competitiveness of Basque companies with regard to the climate transition and the circular economy.

Green Deal in the Basque Country

The European Commission's European Green Deal sets out the roadmap for implementing a medium to long-term growth and competitiveness strategy for the economy. The coronavirus crisis also makes it one of the pillars of the EU's economic recovery strategy (Next Generation EU). It proposes a major transformation of the production, distribution and consumption model that encompasses all sectors of the economy, in line with the United Nations Sustainable Development Goals (SDGs).

The study concludes that the transformation proposed by the European Green Deal is a perfect fit for a region with an economic structure that has a large industrial sector such as the Basque Country's.

The qualitative analysis carried out suggests that the Deal will have a significant impact on the Basque economy and industry. This is linked to the regulatory and market developments set out in strategies and action plans such as the new industrial strategy, the new circular economy action plan, the “farm to table” strategy, the biodiversity strategy or the proposals on sustainable mobility.

The major cross-cutting challenges for the entire Basque economy identified in the report are environmental sustainability as a factor of competitiveness, placing sustainable products and services at the centre of business strategies, the shift from linear value chains to broader value networks, the importance of size and business culture, digitalisation as an element for more efficient management and operation, training as a key driving factor, the continuous search for financing and the complex role of the Administration.