Poland’s Expanding Defence Sector Creates Opportunities and New Challenges for Industrial Contractors

Rising investment in Poland’s defence industry is creating opportunities for companies seeking to enter a rapidly expanding market. However, industry specialists warn that the production of explosives and ammunition remains one of the most tightly regulated areas of manufacturing, requiring expertise that goes well beyond conventional industrial construction and engineering.

According to Marcin Kosieniak, co-owner of engineering consultancy PM Projekt, many companies are attracted by the growing number of defence-related projects but underestimate the complexity of the sector’s regulatory and technical requirements.

“The defence industry is often viewed as another industrial market, but the reality is very different,” said Kosieniak. “Projects must comply with a range of overlapping regulations covering explosives, workplace safety, environmental protection, fire prevention, construction standards and explosion-risk management.”

The growing demand for domestic defence production follows a broader increase in military spending across Europe, driven by geopolitical tensions and efforts to strengthen strategic autonomy. Poland has emerged as one of the region’s most active investors in defence manufacturing capacity, prompting interest from contractors, suppliers and engineering firms looking to participate in new projects.

However, specialists note that industrial installations within explosives production facilities require a different approach from those found in traditional manufacturing environments.

In such facilities, heating, ventilation and air-conditioning systems are considered an integral part of the production process rather than supporting building infrastructure. Design parameters must be aligned with the specific substances being handled, the potential risks associated with ignition sources and the safety zones required throughout the facility.

Engineers must also address strict requirements related to occupational safety, air filtration, dust management and exhaust treatment. The interaction between these systems means that a design flaw in one area can affect the safety and compliance of the entire facility.

Industry experts argue that experience gained in heavy industry alone is often insufficient preparation for defence-sector projects. The regulatory framework requires coordination across multiple approval processes, extensive documentation and specialised technical knowledge developed through years of sector-specific experience.

As investment in defence manufacturing continues to accelerate, demand for engineering and design services is expected to increase alongside new production facilities. At the same time, investors are placing greater emphasis on proven expertise, regulatory knowledge and project references when selecting contractors and consultants.

According to PM Projekt, the complexity of compliance requirements and the high cost of design errors mean that technical competence is becoming a key differentiator in the market. Companies entering the sector must demonstrate not only engineering capabilities but also an understanding of the approval procedures and long-term operational requirements unique to defence-related facilities.

The trend reflects a broader shift within Poland’s industrial market, where the expansion of strategic manufacturing sectors is creating opportunities for specialised engineering firms while raising the barriers to entry for newcomers. As defence production capacity grows, industry participants expect technical standards, safety requirements and regulatory scrutiny to remain among the most demanding in the country’s manufacturing sector.

CRESCO REAL ESTATE Launches Sales at Yards Žižkov as Transformation of Former Freight Station Advances

CRESCO REAL ESTATE has launched apartment sales in the first phase of its Yards Žižkov residential development, which is being built on the site of Prague’s former Žižkov Freight Station. The project, developed in partnership with WOOD & Company, forms part of the wider regeneration of one of the capital’s largest redevelopment areas.

The two-phase scheme will deliver more than 1,100 apartments. According to the developer, demand has been strong since the launch of sales, with approximately one-third of the 100 units in Building B already sold after entering the market in May.

The first phase of the project will gradually bring more than 520 apartments to market, ranging from studio layouts to five-room family units. Apartment sizes will range from 20 sqm to 158 sqm. Most homes will include balconies, terraces or private gardens, together with storage space and parking facilities.

Construction began in May 2026, with the first residents expected to move into the development in 2028.

The project has been designed by QARTA Architektura and will target the highest energy-efficiency category. Residential units will feature air conditioning, underfloor heating, triple-glazed windows and external shading systems. Additional specifications include large-format aluminium windows, wooden flooring, modern bathrooms and security entrance doors.

The development will also incorporate green roofs, landscaped public areas and a private park for residents. Design elements inspired by the site’s industrial past are planned for both building facades and public spaces, reflecting the history of the former freight terminal.

Beyond housing, the project will include retail and service facilities, public spaces and green areas intended to support a mixed-use urban environment.

One of the key advantages of the development is its location within the rapidly changing Prague 3 district. New tram stops at Malešická and Nad Kapličkou will provide direct connections to the city centre, while daily amenities, schools and leisure facilities are planned within walking distance, in line with the principles of a so-called “15-minute city”.

Yards Žižkov forms part of the broader redevelopment of the former Žižkov Freight Station area, which is expected to become one of Prague’s most significant new urban districts over the coming years, combining residential, commercial and public functions within a large-scale regeneration project.

BMW Group Distribution Centre Near Ostrava Moves Closer to Launch

The development of BMW Group’s new distribution centre at Ostrava Airport Multimodal Park in Mošnov has entered its final stage, with logistics operator DP World beginning preparations ahead of the facility’s planned launch later this year.

Developer GRIDARCH has granted early access to the three logistics halls that make up Phase III of the project, allowing DP World to enter and fit out the premises before the formal building permit process is completed. The halls, which provide a combined 124,000 sqm of leasable space, are expected to receive final approval during the summer of 2026.

DP World, selected by BMW Group to operate the facility, has started installing racking systems, preparing office areas and testing operational and IT infrastructure. Recruitment is also underway, with the centre expected to create up to 750 jobs once fully operational.

The facility will serve as BMW Group’s overseas distribution hub for automotive components and spare parts, supporting the company’s global manufacturing and after-sales operations.

According to GRIDARCH, granting early access enables the future operator to prepare the site for immediate use once final approvals are received. The company said the project has been developed to meet the requirements of a large-scale international distribution operation.

Robert Sgariboldi, Country Manager of DP World Czech Republic, said the early access period would allow the company to test technologies and operational processes before the start of pilot operations. He added that the multimodal transport connections available in Mošnov, including road, rail and air links, were a key factor in the site’s attractiveness.

The Phase III development represents the latest expansion of Ostrava Airport Multimodal Park, one of the Czech Republic’s largest logistics and industrial projects.

The park’s first phase, launched in 2018, delivered approximately 139,000 sqm of industrial space and includes a 151,000 sqm rail container terminal. Part of the development, together with an industrial park in Nošovice, was acquired by EQT Real Estate in 2021.

A second phase, comprising four logistics and light industrial buildings with a total area of 122,000 sqm, was completed in March 2025. Three of those buildings were subsequently acquired by EQT Real Estate, while one remains under GRIDARCH ownership and is leased to automotive supplier Brose CZ.

Construction of the third phase is expected to be completed during summer 2026, with full operations at BMW Group’s distribution centre anticipated by the end of the year.

When History Returns: Poland and Ukraine Navigate Memory, Politics and Security

The relationship between Poland and Ukraine has often been described as one of the most important strategic partnerships in Central and Eastern Europe. Since Russia launched its full-scale invasion of Ukraine in 2022, the two countries have worked closely on security, humanitarian assistance and diplomatic initiatives. Yet recent events have once again demonstrated how unresolved historical questions continue to influence contemporary politics.

The latest disagreement emerged after Ukrainian authorities honoured a military unit with a name linked to a controversial chapter of twentieth-century history. While the decision was largely presented in Ukraine as a tribute to earlier struggles for national self-determination, it was interpreted very differently in Poland, where memories of wartime atrocities committed against Polish civilians remain deeply embedded in public consciousness.

The differing reactions highlight a challenge that has existed between the two neighbours for decades. Historical figures and organisations that are regarded by many Ukrainians as symbols of resistance and independence are often viewed in Poland through the lens of violence and suffering experienced during the Second World War. As a result, decisions intended for domestic audiences in Ukraine can quickly generate political consequences across the border.

The controversy arrives at a sensitive moment in Polish politics. Questions of national identity, historical responsibility and relations with Ukraine have become increasingly prominent topics in public debate. While political leaders broadly agree on the importance of supporting Ukraine’s sovereignty and security, opinions differ on how firmly historical issues should be addressed within the bilateral relationship.

Some Polish politicians have argued that symbolic gestures matter and that historical grievances cannot be overlooked, regardless of current geopolitical circumstances. Others have emphasised the need to prevent disputes over the past from undermining cooperation that remains essential for regional stability.

For Ukraine, the issue is equally complex. More than four years into a large-scale war, the country continues to draw upon historical narratives that reinforce national unity and resilience. Political leaders face pressure to maintain public morale while strengthening a sense of continuity between previous generations that fought for independence and the current defence effort against Russia.

These domestic considerations help explain why certain decisions resonate strongly within Ukraine, even when they risk creating diplomatic friction abroad. Wartime governments frequently prioritise messages that reinforce national cohesion, particularly when facing prolonged military and economic challenges.

At the same time, the strategic balance between Warsaw and Kyiv has evolved since the early months of the war. Poland played an indispensable role in facilitating military supplies, humanitarian assistance and refugee support. It became one of Ukraine’s most reliable advocates within NATO and the European Union.

As the conflict has continued, however, Ukraine has diversified its international partnerships and strengthened direct ties with larger Western capitals. This does not diminish Poland’s importance, but it has changed the dynamics of the relationship. The partnership is no longer defined solely by emergency wartime support but increasingly by long-term political, economic and security interests.

The disagreement also illustrates a broader reality of international relations. Countries may share common strategic objectives while maintaining profoundly different interpretations of history. Such differences do not necessarily prevent cooperation, but they require careful management and political maturity on both sides.

Despite the current tensions, there is little indication that either government intends to fundamentally alter the partnership. The security interests of Poland and Ukraine remain closely aligned. Both countries view a stable and secure Eastern Europe as essential to their future, and both recognise that continued cooperation serves their broader national interests.

What the dispute does reveal is that historical memory remains a powerful force in Central European politics. Even as governments focus on contemporary security challenges, events from more than eighty years ago continue to shape public opinion, political discourse and diplomatic relations.

The future of Polish-Ukrainian relations will likely depend on the ability of both countries to acknowledge these sensitivities while maintaining focus on the strategic realities that bind them together. The past cannot be changed, but how it is remembered and incorporated into modern state policy will continue to influence one of Europe’s most consequential partnerships.

Source: WEI

P3 Plans Small Business Unit Development at Ostrava Central

P3 Logistic Parks is preparing to introduce a new Small Business Units (SBU) concept at its P3 Ostrava Central logistics and industrial park, targeting growing demand from small and medium-sized enterprises, startups and local businesses seeking flexible premises.

The planned development will consist of modular units designed to accommodate a variety of uses, including light manufacturing, last-mile logistics, e-commerce operations, retail activities and service businesses. The concept is intended to allow tenants to combine warehouse, production, office and showroom functions within a single location.

According to P3, the new units will be available in sizes ranging from approximately 322 sqm to 1,178 sqm and will offer flexibility for future expansion through the connection of multiple units.

“The demand for smaller, high-quality and flexible business premises continues to grow,” said Marek Jaskula, Senior Leasing Manager at P3. He added that the project aims to provide local companies with access to modern facilities and strong transport connectivity while supporting future business growth.

The units are being designed with a focus on sustainability and operational efficiency. Technical specifications will include an 8-metre clear height, floor load capacity of 5 tonnes per square metre and preparation for heating and cooling systems. P3 also plans to make the units ready for simplified sprinkler installation, broadening their appeal to a wider range of occupiers.

Each unit will include employee facilities, while the wider park benefits from an electrical capacity of up to 20 MW, providing sufficient infrastructure for various business activities.

The project is being developed in line with BREEAM Excellent certification standards. Planned sustainability features include energy-efficient LED lighting, low-emission HVAC systems, energy and water consumption monitoring, electric vehicle charging infrastructure and biodiversity-support measures.

According to Ondřej Hráský, Head of Construction at P3, these measures are intended to reduce operating costs for tenants while supporting environmental objectives.

The first units are expected to be completed during the first half of 2027, subject to final permitting and construction schedules.

P3 Ostrava Central is located within the regenerated industrial area of Dolní Vítkovice at the intersection of the Místecká and Rudná roads. The urban location provides access to public transport, cycling infrastructure and key transport routes across the city.

The park is already home to a range of occupiers, including Linde Material Handling, Tefcold, Canpol Babies, PNS, Zítek Logistics, Bezvapostele.cz and BrainMarket. The development also incorporates public green spaces and amenities such as benches, bicycle stands and outdoor fitness facilities.

Hungary Proposes Major Overhaul of Political and Outdoor Advertising Rules

A proposed law introduced in the Hungarian Parliament on 2 June 2026 could bring significant changes to the regulation of political and outdoor advertising across the country. The draft legislation, identified as Bill T/122, aims to restrict hate-inciting political advertisements, strengthen townscape controls over commercial advertising, and amend certain investment-related regulations. If approved, the new rules would come into force on 1 August 2026.

The proposed measures would affect a broad range of stakeholders, including outdoor advertising operators, media companies, property owners and developers, construction firms using advertising banners on building sites, retailers, political parties and local governments.

One of the most notable elements of the bill is the introduction of stricter content rules for political advertising. Political advertisements would be prohibited from containing material that violates human dignity, targets national, ethnic, racial or religious communities, assigns collective responsibility to groups, or seeks to incite hatred. The restrictions would also cover images and videos that portray individuals in a false or misleading manner for such purposes. In addition, political advertisements would not be permitted to include content considered harmful to the physical, mental, moral or emotional development of minors.

Under the proposal, Hungary’s Media Council would be required to decide within 15 days whether a disputed advertisement qualifies as prohibited political content following the submission of a complaint.

The legislation would also substantially reshape the outdoor advertising market. Advertising visible from public spaces would only be allowed on specified structures, including street furniture, advertising columns, utility poles and roof-mounted carriers. Several widely used formats, such as wall advertisements, advertising mesh banners and scaffold advertising banners, would no longer be permitted.

Advertising surfaces would be limited to a maximum size of 15 square metres. At the same time, formats smaller than the standard citylight poster size would generally be prohibited unless otherwise authorised by government decree.

Political campaign posters would face additional placement restrictions. They could no longer be displayed on lighting poles, telephone poles, traffic signs, road safety equipment or trees.

The proposal would also introduce new administrative requirements for advertising installations. Townscape permits would remain valid for five years and would need to be renewed at least 30 days before expiration. Existing advertising structures that do not comply with the new rules would have to be removed or modified by 30 September 2026.

Local governments would regain a central role in regulating advertising placements through a townscape notification procedure. This authority had previously been exercised by district offices. Municipalities would also have the power to establish additional advertising-free zones through local decrees. In Budapest, the city administration would be able to introduce advertising restrictions applicable across the capital.

Enforcement powers would also be strengthened. If non-compliant advertising installations remain in place after the September 2026 deadline, local authorities could order their removal and impose penalties on both the owners of the advertising structures and the owners of the properties on which they are located. Operators whose installations could be brought into compliance through modification would be required to initiate the relevant townscape notification procedures by the same deadline.

With parliamentary consideration now underway, businesses involved in outdoor advertising, media services, construction and political campaigning are expected to closely monitor the progress of the legislation and evaluate its potential impact on their operations and future advertising strategies.

Czech Competition Reform Would Expand Regulator’s Powers and Increase Management Liability

The Czech Office for the Protection of Competition (ÚOHS) has proposed a substantial amendment to the country’s Competition Act that would significantly expand the authority’s enforcement powers and introduce new obligations for businesses and their management teams.

If approved, the reform would represent one of the most significant changes to Czech competition law in recent years, aligning the country more closely with developments seen across the European Union.

One of the most notable proposals is the introduction of a new competition tool that would allow ÚOHS to intervene in markets where competition is deemed ineffective, even when no specific breach of competition law has been identified. The authority would be able to conduct market investigations and subsequently impose corrective measures through regulatory decisions.

Such measures could include requirements to provide access to data, networks or interfaces, implement transparent and non-discriminatory standards, or modify contractual arrangements and market practices. In exceptional cases, the proposal also envisages structural remedies, including the divestment of parts of a business.

The amendment would also introduce the possibility of imposing sanctions directly on individuals involved in cartel activity. While current enforcement primarily targets companies, the new framework would allow the authority to pursue managers or other individuals who actively organise or participate in anti-competitive agreements.

The proposal further includes a leniency mechanism for individuals who cooperate with investigations, reflecting a broader focus on personal accountability within competition enforcement.

Changes are also planned for merger control. The turnover thresholds triggering mandatory merger notifications would be increased for the first time in more than two decades. The combined turnover threshold would rise from CZK 1.5 billion to CZK 2.5 billion, while the individual turnover threshold would increase from CZK 250 million to CZK 350 million.

According to ÚOHS, the higher thresholds could reduce the number of merger filings by around 30%, particularly for transactions with limited competitive impact.

At the same time, the authority would gain the ability to review certain transactions that fall below the standard notification thresholds through a new “call-in” mechanism. The measure is intended to allow scrutiny of acquisitions that may raise competition concerns despite their smaller size, particularly in innovative or strategically important sectors.

The proposed reform would also strengthen investigative powers. ÚOHS would be able to access selected datasets held by public institutions, including the Czech National Bank and the Czech Statistical Office.

In cartel investigations, the authority could also obtain certain operational and location data relating to mobile devices from telecommunications providers, subject to prior court approval. The measure is intended to improve the detection of anti-competitive conduct where direct documentary evidence is unavailable.

Although the proposal remains subject to the legislative process and may undergo further revisions, it signals a shift towards more proactive and data-driven competition enforcement in the Czech Republic.

Companies operating in concentrated markets, pursuing mergers and acquisitions, or facing competition compliance risks may need to reassess their internal procedures and governance frameworks if the reform is adopted.

Source: CMS

GCC Corporate Profits Reach Record High in Q1 2026 as Energy and Banking Sectors Lead Growth

Companies listed on Gulf Cooperation Council (GCC) stock exchanges reported a record quarterly profit of USD 67.9 billion in the first quarter of 2026, representing a 15.5% increase compared with USD 58.8 billion during the same period a year earlier. The strong performance was primarily driven by higher earnings from energy companies, particularly Saudi Aramco, alongside continued growth in the banking sector and improved results from food and beverage companies.

According to the GCC Corporate Earnings Report published by Kamco Invest, total revenues generated by listed companies across the region increased by 7.7% year-on-year to USD 353.3 billion during the quarter. The rise in profitability was broad-based, although gains were partly offset by weaker performances in the telecommunications and transportation sectors.

Saudi Arabia remained the dominant contributor to regional earnings growth. Listed companies in the kingdom generated USD 44.4 billion in net profits during Q1 2026, an increase of 22.2% compared with the previous year. Saudi Aramco was the largest single contributor, reporting net earnings of USD 32 billion, supported by higher oil prices, increased sales volumes and stronger downstream operations.

The GCC banking sector also delivered another strong quarter, with aggregate profits reaching USD 16.9 billion, up 5.1% year-on-year. Banks benefited from continued lending growth across the region, lower impairment charges and resilient non-interest income. Outstanding credit facilities across the GCC exceeded USD 2.1 trillion, reflecting continued demand for financing despite regional uncertainties.

Dubai-listed companies reported net profits of USD 6.8 billion, an increase of 12.3%, supported by strong performances from real estate, utilities and banking companies. Emaar Properties and Emaar Development were among the key contributors, benefiting from sustained demand in the UAE property market and successful project launches. Abu Dhabi-listed firms recorded a 16.1% increase in earnings to USD 10.6 billion, with banking, food and beverage, and capital goods companies delivering the strongest growth.

Not all GCC markets shared in the growth. Kuwait experienced the sharpest decline, with aggregate profits falling nearly 49% to USD 1.2 billion. The drop was largely attributed to a significant one-off loss reported by Agility Public Warehousing Company following provisions related to investment property assets. Despite this, Kuwaiti banks and telecommunications companies posted positive earnings growth during the quarter.

Qatar also reported weaker results, with total profits declining 3.3% year-on-year to USD 3.5 billion. Lower earnings in the energy, materials and banking sectors weighed on overall performance, although gains in telecommunications and real estate partially offset the decline. Geopolitical tensions and regional conflict were cited as factors affecting operations, logistics and sales across several industries.

Meanwhile, Bahrain and Oman recorded more moderate growth. Bahrain-listed companies increased profits by 17.6% to USD 549.8 million, supported by strong performances in materials and financial services. Oman-listed firms reported earnings growth of 4.0%, reaching USD 838.5 million, with banks and energy companies remaining the main contributors.

The report highlights the continuing importance of the energy sector to GCC corporate performance. Energy companies generated USD 35.7 billion in profits during the quarter, compared with USD 28.4 billion a year earlier, while banking remained the second-largest contributor to regional earnings. Despite ongoing geopolitical challenges and disruptions to trade and logistics in parts of the region, the GCC corporate sector entered 2026 with its strongest quarterly profit performance on record.

AFI City Expands Retail Offering and Launches Community Garden in Prague

AFI is continuing the development of its mixed-use AFI City district in Prague 9 near the Kolbenova metro station, adding new retail tenants, expanding amenities for residents and office users, and launching a community gardening initiative.

The project combines rental housing under the AFI Home brand, office space and public amenities on the site of a former brownfield. The developer aims to create a neighbourhood that serves residents, employees and visitors through a mix of residential, commercial and leisure facilities.

The AFI Home Kolbenova 1 and 2 rental residences, which together offer 640 apartments, have welcomed a new hair and beauty business, Salon Laura, in the ground floor retail space of AFI Home Kolbenova 2. The salon joins existing services including a supermarket, a self-service laundry operated by Lavor and a coworking centre. Additional openings planned for this summer include the Blízko bistro in AFI Home Kolbenova 1 and the AFI Home Club, a social space for residents.

The 19-storey AFI City office building has also expanded its retail and food-and-beverage offering. A new restaurant, District 9, and the Kafíčko bistro have opened in the building, providing dining options for office workers and visitors. The restaurant also features an outdoor terrace designed to connect the building with the surrounding public space.

“Long-term, we are focused on creating a modern urban district with a strong range of local amenities,” said Karin Shalev Shogol, CEO of AFI in the Czech Republic. “Our goal is to ensure that the mix of retail tenants enhances daily life for residents and office users while contributing to the development of the local community.”

A new community garden has also been introduced for residents of AFI Home Kolbenova 1 and 2. The initiative is being developed in cooperation with social enterprise KOKOZA, which is helping establish the gardening programme and support resident participation.

The first phase includes 16 raised planting beds for herbs and vegetables, communal seating, a composting system, rainwater collection for irrigation and a barbecue area intended to encourage neighbourhood gatherings. Further improvements, including automatic irrigation, additional planting and a green hedge, are planned if the project proves successful.

AFI is also continuing to invest in public spaces within the development. The existing park already includes a children’s playground and newly installed table tennis facilities. Construction is underway on an outdoor fitness area designed for strength and conditioning exercise.

In addition, AFI and Prague 9 Municipality are preparing to begin construction of a kindergarten, which is expected to further strengthen the district’s family-oriented infrastructure.

New Report Questions Economic Impact of EU Emissions Trading System

A new report from the Warsaw Enterprise Institute argues that the European Union’s Emissions Trading System (ETS) is imposing growing economic costs on businesses and households while delivering uncertain benefits for competitiveness and long-term decarbonisation. The study compares the ETS framework with alternative market-oriented climate policies and concludes that reforms may be needed to balance environmental goals with economic growth.

According to the report, companies covered by the ETS incurred an estimated €46 billion in annual costs in 2023 when aviation and maritime sectors are included. The authors calculate that the broader impact on the EU economy may have reached as much as €55 billion, equivalent to approximately €123 per capita across the bloc.

The report warns that costs could increase significantly over the coming decade as free emission allowances are phased out and the planned ETS 2 system extends carbon pricing to road transport and building heating. Under a fully implemented ETS framework, annual compliance costs for businesses could rise to approximately €140 billion based on current emissions levels and carbon prices.

Researchers argue that the ETS market has experienced periods of significant price volatility. Carbon allowance prices increased from around €20 per tonne in 2020 to peaks near €100 per tonne in 2022 before moderating. The report states that such fluctuations create uncertainty for companies planning long-term investments in decarbonisation technologies.

The study also highlights differences in how ETS-related costs are distributed across the European Union. It suggests that more industrialised and energy-intensive economies in Central and Eastern Europe face a proportionally higher burden than wealthier service-oriented economies in Western Europe. Countries such as Poland, the Czech Republic, Slovakia and Romania are identified as particularly exposed because of their industrial structures and greater reliance on conventional energy sources.

As alternatives, the report proposes two market-based mechanisms developed under the Climate and Freedom Accord framework. The first, Decarbonization Tax Cuts (DTCs), would reduce corporate tax rates on income generated by lower-emission products within high-emission sectors. The second, Rapid Innovation Funds (RIFs), would provide tax incentives for investments in industrial equipment and technology upgrades.

The authors estimate that these measures could stimulate additional economic activity while supporting emissions reductions through technological innovation rather than carbon pricing. Under the report’s modelling, the combined economic benefits of these alternatives, together with avoided ETS costs, could amount to up to €245 per capita across the EU under optimistic assumptions.

The report concludes that Europe faces increasing pressure to maintain industrial competitiveness while pursuing climate objectives. It calls for policymakers to reassess the current balance between regulatory measures and market-based incentives, arguing that future climate policies should focus more strongly on encouraging investment, innovation and productivity growth alongside emissions reductions.

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