How energy is redefining Europe’s global role
Europe must embrace flexible partnerships, resilient industrial strategies and economically viable decarbonisation to remain competitive in a fractured world
Interview with Claudio Descalzi, CEO, eni
Are we witnessing the end of globalisation as we once knew it?
We’ve been living through the gradual erosion of the globalisation model that had, in truth, been faltering for some time. This hasn’t happened overnight. We’ve seen the rise of protectionist measures like tariffs, but these are only symptoms of a much deeper reordering of the global economy. The energy sector is at the heart of this shift: it doesn’t just reflect broader geopolitical and economic tensions—it shapes them. Growing fragmentation has steadily undermined confidence in a global value chain model driven by cooperation and multilateralism, exposing some countries and regions to strategic vulnerabilities.
Where does this leave Europe?
For decades Europe has prioritised policies and targets over pragmatism and resilience—and now it’s facing the consequences. From the energy perspective, first the pandemic, then the war in Ukraine exposed just how fragile that model was. And it’s not just gas—today, the same risk exists in critical materials and technologies, almost entirely controlled by China.If we don’t diversify now, we’ll face the same vulnerabilities in the next crisis. These energy security concerns are increasingly intertwined with growing challenges regarding economic sustainability and competitiveness. Europe, which over the past two decades has embraced globalisation by offshoring its primary and secondary sectors while focusing on developing services domestically, is now contending with stagnating growth, industrial decline, and a loss of competitiveness. And in Europe, where energy prices are among the highest in the world, costs have become a real burden on competitiveness. What we’re seeing isn’t just disruption—it’s a chance to reset Europe’s direction. These global shifts are pushing us to rethink our industrial and economic priorities, putting energy security, competitiveness, and sustainability at the core. This is no longer the time for ideological debates. What we need is to strengthen our historical alliances, modernise them, and build new, strategic partnerships. The way forward is clear: pragmatic energy policies that turn today’s challenges into real opportunities for long-term competitiveness.
That would seem to require a major shift. Is it really feasible?
First and foremost, we must address the complex bureaucratic apparatus within the European Union. For years, this system has translated political decisions into cumbersome regulations. Governments are left to interpret and apply complex decisions, while businesses are expected to invest time, capital, and resources to make them work. In energy, we need a truly shared vision—one that reflects Europe’s diverse realities. Europe is a collective of diverse countries, each with different levels of economic and industrial development, different energy mixes which drive differences in energy prices, distinct demand profiles, and heterogeneous industrial strategies. Managing this diversity requires pragmatic compromise and flexibility, prioritisation of available technology solutions, and a deep understanding of differing national interests—like assembling a vast and intricate mosaic. Europe needs to break away from rigid, one-size-fits-all regulations and embrace a more flexible, cooperative model—one that fosters innovation while delivering on climate and energy security goals. Regulation can’t be an obstacle; it has to be an enabler. We’ve seen it work. In the UK, our Liverpool Bay CCS project shows how the regulatory framework can unlock investment and create value around low-carbon technologies. It’s proof that when regulation supports innovation, new markets can grow, emissions can fall, and value can be shared across the system. That’s the direction Europe needs to take.
You mention Europe’s priorities as security, competitiveness, and the environment. Are they meant to be pursued in that order?
These priorities aren’t sequential—they’re interdependent. Energy security, competitiveness, and sustainability must move together, or none of them will hold. What we’re starting to see in Europe is a shift from slogans to realism. There’s a growing understanding that the energy transition cannot—and must not—undermine industrial strength. Industry isn’t optional; it’s the backbone of progress. Without it, innovation remains theory. Whether we’re talking about CCS, biofuels, solar or wind, these technologies only scale if they’re built on a solid industrial foundation—with the right infrastructure, skills, and production capacity. To remain competitive, we need a transition strategy that safeguards industry and supports the technologies we can deploy quickly and effectively. At the same time, we must create space for breakthrough solutions to emerge over time. And one principle must be non-negotiable: decarbonisation has to be economically viable. It must attract private capital, not rely on endless public subsidies. That requires a regulatory environment that enables investment and gives companies the freedom to lead the transition through sustainable, resilient business models.
Does Europe truly have the tools to deliver all of this?
Europe is facing structural constraints, but it still has what it takes—capital, technology, and know-how. What’s missing is the ability to turn these assets into foundational partnerships, built not on dependency but on shared value. Energy can be a powerful tool for cooperation—if managed with long-term vision and competence. That’s exactly the approach we’ve followed at Eni. In the Eastern Mediterranean, we’ve connected Cyprus and Egypt through our infrastructure to develop gas resources that benefit both. In Southeast Asia, we’ve brought Indonesia and Malaysia together to unlock shared natural gas potential and help phase out coal. These aren’t one-off deals—they’re examples of how energy, when approached pragmatically, creates stable, forward-looking relationships where none existed before. Energy can cause imbalances when it’s driven by short-term logic. But if we manage it well—anchored in industrial capability and mutual interest—it becomes a driver of resilience, development, and global stability.
