On Wednesday, 26 February, the European Commission announced its plan for EU competitiveness and decarbonisation through the Clean Industrial Deal. The strategy comes in response to increased competition from China and the U.S. with EU officials claiming that Europe can win on green technology.
There will be €100 billion in short-term relief to increase green manufacturing in the EU. The goal is to help traditional industries cut carbon emissions and boost the EU’s emerging clean tech industry.
The main elements of the Clean Industrial Deal are:
Affordable energy
The main focus of this is to lower energy bills for industries, businesses and households while promoting Europe’s transition to a low-carbon economy.
Boosting demand for clean products
The Industrial Decarbonisation Accelerator Act will increase demand for EU-made clean products – introducing sustainability, resilience, and ‘made in Europe’ criteria in public and private procurements.
Financing the clean transition
The Clean Industrial Deal will mobilise over €100 billion to support EU-made clean manufacturing. This will include the adoption of a Clean Industrial Deal State Aid Framework to accelerate the approval of state aid. A strengthened Innovation Fund and Industrial Decarbonisation Bank.
Circularity and access to materials
The Clean Industrial Deal will aid the EU industry in securing raw materials through an EU Critical Raw Material Centre, allowing industry to purchase raw materials and negotiate better prices and conditions jointly.
A Circular Economy Act will also be introduced in 2026 to accelerate the circular transition and ensure that scarce materials are used and reused efficiently.
In addition to ongoing trade agreements, the EU will launch the first Clean Trade and Investment Partnerships to diversify supply chains. Additionally, the Commission plans to establish a Union of Skills – investing in workers, developing skills, and creating quality jobs.
Overview
The Commission’s Clean Industrial Deal Roadmap provides a detailed plan on how this key initiative will be implemented. The Clean Industrial Deal will be one of the key flagship initiatives announced this year by the European Commission. It represents a bold step in strengthening the EU’s competitiveness while advancing decarbonisation goals. The initiative aims to position Europe as a global leader in green technology by investing in affordable energy, clean manufacturing, and sustainable supply chains. The success of this initiative will be crucial in ensuring the EU increases its global competitiveness.
