"Without electrifying its economy, Europe’s energy sovereignty is at risk," warns Erkki Maillard

As Senior Vice-President for Public and International Affairs at EDF, Erkki Maillard brings a strategic perspective on how Europe can navigate the deepening US–China rivalry. Speaking ahead of the ESSEC Institute for Geopolitics & Business conference “Geopolitics Meets The Boardroom: European Businesses Navigating US–China Rivalry” (17 September 2025), he argues that electrification is Europe’s best answer to geopolitical shocks. From securing critical minerals to avoiding new dependencies on Chinese clean-tech supply chains and US LNG pricing, Maillard calls for stronger European industrial policies, investment in nuclear and renewables, and enhanced governance tools. His message is clear: resilience and competitiveness hinge on accelerating a sovereign, low-carbon energy system.

Energy is now at the heart of the US–China rivalry. How does this rivalry affect Europe’s energy security and competitiveness?

Erkki Maillard – The intensifying US–China rivalry reshapes global energy flows and supply chains, creating volatility and uncertainty. For Europe, this means heightened risks around access to critical technologies and raw materials. It also pressures Europe to diversify its suppliers and reinforce its energy independence. EDF supports a resilient European energy system by investing in low-carbon technologies such as nuclear and renewables, reducing exposure to geopolitical shocks and ensuring long-term competitiveness. The priority is to electrify the economy. The main issue today is that the electrification rate of the EU economy is stagnating around 23%.

Europe committed to massive LNG imports from the US after the Turnberry negotiations. How vulnerable does this make European companies to dollar volatility and US price policy?

E.M. – Again, besides company strategies to mitigate these risks through diversified sourcing or hedging strategies, I believe that a European long term and well-coordinated investment strategy into all domestic low-carbon generation assets and grid efficiency systems is key to avoid external dependencies. Strengthening European infrastructure and fostering intra-EU energy cooperation are key to reducing vulnerability and enhancing strategic autonomy.

Do you see a risk that US trade and energy policies amount to economic predation on Europe—and what can businesses do about it?

E.M. – There is a global competition in the clean technologies’ areas. This is a fact. It is clear also that it is a challenge for the EU that decided to be the climate trailblazer in the world and has adopted a set of extremely ambitious legislations to support its climate agenda. We must design better legislation combining competitiveness and climate ambition. In that respect I believe that electrification is a priority. Indeed, not delivering on the electrification of the economy would delay carbon neutrality by 10 years, dramatically increasing the cost of the transition and jeopardizing European energy sovereignty. This would result in a cumulative increase of 6000 Mt CO2 between 2023 and 2050, +20% increase in power system costs and +60 bcm of gas imports. As such, electrification is the best answer towards US and Chinese energy policies.

China dominates clean-energy supply chains—solar panels, batteries, electric vehicles. How can Europe avoid a new strategic dependency while pursuing its energy transition?

E.M. – First, what strikes me is that China has made a strategic decision to move towards clean technologies and to build competitive advantages based on this ambitious agenda. Second, this results in dependency risks. The lesson for Europe is that you can combine offensive industrial and climate policies together, and that we need to address dependencies. Europe must accelerate domestic manufacturing, diversify imports, and invest in circular economy models. EDF supports this by sourcing responsibly, fostering European partnerships, and investing in local innovation. Building a robust, sovereign supply chain is essential to ensure energy security and meet climate goals. This is why EDF strongly supports EU initiatives such as the Net Zero Industry Act or the Industrial Decarbonization Accelerator Act.

Critical minerals are essential for renewables and nuclear. With China already cutting rare-earth exports, what strategies should Europe adopt to secure its supplies?

E.M. – Europe must adopt a multi-pronged strategy: diversify sourcing, develop strategic reserves, and invest in recycling and substitution technologies. EDF advocates for EU-level coordination and public-private partnerships to secure critical minerals for renewables, using regulatory intervention when necessary. We need to apply the same strategy with RES than the one already implemented in nuclear. Strengthening ties with resource-rich countries and supporting sustainable domestic mining practices are also vital to ensure long-term supply security.

EDF is central to Europe’s decarbonisation. How do you balance the urgency of the transition with the need for resilience against geopolitical shocks?

E.M. – EDF generated 440,557 GWh of clean electricity in Europe in 2024, mainly in 4 countries: France, the UK, Italy and Belgium. With a power mix primarily based on nuclear and renewables, EDF plays a significant role in Europe’s decarbonization pathway. For each kWh produced, EDF emits about 7 times less CO₂ than the average of European utilities, and 15 times less than the global average. We can estimate that without EDF capacities, CO2 emissions in Europe would be 15% higher.

The diversity of our power mix, and notably the French and British nuclear fleets, plays a significant role in Europe’s security of supply and system stability. This means EDF’s business model always coupled transition and resilience needs.

And again, the best asset to foster resilience is to accelerate electrification, clean electrons being at European level the only clean and domestic energy.

In this era of post-globalisation, how should boards think differently about investing in nuclear, renewables, and grids?

E.M. – Boards need to invest in clean technologies considering all aspects of the energy trilemma: sustainability, resilience and affordability. The three should go hand in hand, which is the only way to offer a sustainable model to our customers.

It is also paramount to invest following a systemic approach of the copper plate. This is essential to avoid episodes such as the Spanish blackout. Every asset should contribute to balancing the power grid 24/7 while grid modernization is paramount to ensure system reliability.

Do you believe energy companies need new governance tools—like a Chief Geopolitics Officer—to better prepare for global rivalries and supply risks?

E.M. – Yes, energy companies increasingly need governance tools to navigate global rivalries. EDF embeds geopolitical analysis into decision-making in all its business units, with dedicated teams and centralized expertise. Enhanced governance helps anticipate disruptions, secure supply chains, and align with national and EU energy policy priorities.

ABOUT THE ESSEC INSTITUTE FOR GEOPOLITICS & BUSINESS

Created in 2024 by ESSEC, the Institute for Geopolitics & Business examines how geopolitical shocks reshape companies’ economic models.

Operating across ESSEC Business School’s campuses in France, Morocco, and Singapore, it brings a tri-continental perspective to what drives corporate competitiveness in the post-globalization era: vigilance, resilience, independence.

It feeds into ESSEC’s degree programs, executive education, and research to foster a new generation of geopolitics-proof business leaders capable of steering and growing companies amid an increasingly brutalized world.

Rooted in ESSEC’s academic excellence, the Institute draws on 4 flagship centers:

• the IRENE Center for Negotiation & Mediation,
• the Center for Geopolitics, Defense & Leadership,
• the Center for European Law & Economics, and
• the Chair Business & Industry in Africa.

Contact: Thomas FRIANG, Executive Director of the ESSEC Institute for Geopolitics & Business - friang@essec.edu