On February 26, the Commission rolled out the Clean Industrial Deal, an ambitious plan to help boost European industries’ competitiveness and resilience. The Deal aims to speed up decarbonisation while keeping manufacturing alive in Europe.
With high energy costs and tough global competition, the EU’s industries need immediate support. The Deal makes decarbonisation a key factor for growth in European industries, giving companies and investors a sense of certainty about Europe’s commitment to becoming a decarbonised economy by 2050. The Commission is also working on making regulations more efficient and reducing red tape for businesses.
The measures come from working closely with industry leaders, social partners, and civil society through the Antwerp Declaration for a European Industrial Deal and the European Commission’s Clean Transition Dialogues.
The Deal mainly focuses on two connected sectors: energy-intensive industries, which need immediate help to decarbonise and shift towards electrification, and clean tech, which is crucial for future growth and transforming our industries. Circularity plays a vital role in this plan, as the Commission needs to make the most of the EU’s limited resources and lessen its reliance on third countries for raw materials.
“Europe is not only a continent of industrial innovation, but also a continent of industrial production. However, the demand for clean products has slowed down, and some investments have moved to other regions. We know that too many obstacles still stand in the way of our European companies from high energy prices to excessive regulatory burden. The Clean Industrial Deal is to cut the ties that still hold our companies back and make a clear business case for Europe,” President Ursula von der Leyen said.
The Deal includes measures that strengthen the entire value chain and provide a framework for tailored actions in specific areas. The Commission will release an Action Plan for the automotive industry in March and plans for steel and metals in the Spring, along with other targeted actions for the chemical and clean tech sectors.
The Commission focuses on several key factors to help industries succeed in the EU, like lowering energy costs, increasing demand for clean products, and ensuring a skilled workforce.
Affordable energy is crucial for competitiveness, and the new Action Plan on Affordable Energy aims to cut energy bills for businesses and households while speeding up clean energy rollouts.
The Industrial Decarbonisation Accelerator Act will boost demand for EU-made clean products by introducing sustainability and resilience criteria in public and private procurement. Starting in 2025, a voluntary carbon intensity label will inform consumers about industrial products’ environmental impact.
The Clean Industrial Deal plans to mobilise over €100 billion to support clean manufacturing in the EU, including an extra €1 billion in guarantees. It will streamline state aid approvals for renewable energy and industrial decarbonisation, enhancing funding through the Innovation Fund and InvestEU regulations.
The European Investment Bank will introduce financing tools to support this initiative, like a “Grids Manufacturing Package” and counter-guarantees for Power Purchase Agreements.
To secure critical raw materials, the Commission will enable companies to collaborate and purchase together, aiming to have 24% of materials circular by 2030. They’ll also launch Clean Trade and Investment Partnerships to diversify supply chains and protect EU industries from unfair global competition.
Finally, a Union of Skills will be created to develop workers’ skills and promote quality jobs, with up to €90 million from Erasmus+ focused on training in industries related to the Clean Industrial Deal.
