Some manufacturing activities, for example the production of steel and basic chemicals, are among the economic activities that are most difficult to decarbonise. They are particularly concentrated in certain regions. These regions are also often more vulnerable socially and economically than others, with lower income per capita for instance. Given the region-specific risks and opportunities, harnessing local action of governments, citizens, businesses and workers, is key for a successful and just transition to climate neutrality.

The Programme identifies regions and activities with particularly big challenges to reach climate neutrality. It supports policymakers at all government levels to put in place measures to make the transformations happen, taking into account regional characteristics. For example, regions differ in their future demand for hydrogen and their access to hydrogen infrastructure. In some regions, businesses in key sectors may find it particularly difficult to integrate new emission-free technologies, or workers may be unskilled to do so. The Programme helps businesses detect risks such as costs from failed investments. It also highlights potential opportunities such as low-cost renewables and regional comparative advantage. Businesses can work together to better develop and exploit climate-neutral infrastructure. SMEs can benefit the most from cooperation in local and regional business networks.