Saturday, 15 March 2025
The European Commission (EC) has introduced the Clean Industrial Deal, an initiative aimed at accelerating decarbonisation while ensuring the future of industrial production in Europe. The agreement is set to mobilise over €100 billion in the short term to support clean manufacturing within the EU.
Commission President Ursula von der Leyen emphasised the urgency of the initiative, stating that while Europe remains a global leader in industrial innovation and production, the demand for clean products has slowed, and investments are shifting to other regions. High energy costs, regulatory burdens, and global competition have hindered European companies, and the Clean Industrial Deal aims to remove these obstacles and provide a clear economic rationale for maintaining production in Europe.
The initiative focuses on two key sectors:
1. Energy-intensive industries, which require urgent support for decarbonisation and electrification while facing high energy costs and competitive disadvantages.
2. Clean technologies, which are essential for Europe’s future competitiveness and industrial transformation.
The agreement also promotes a circular economy, aiming to reduce dependence on third-country suppliers of raw materials by maximising the EU’s limited resources. The Commission plans to introduce sector-specific action plans, including a strategy for the automotive industry in March and a plan for steel and metals later in the spring. Additional measures are expected for the chemical industry and clean technology sector.
Financial and Regulatory Support for Clean Industry
The Clean Industrial Deal includes a comprehensive financial framework to support clean production in the EU, with €100 billion in funding. This includes an additional €1 billion in guarantees under the current multiannual financial framework.
To support this initiative, the Commission will introduce a new State aid framework, expand the Innovation Fund, and propose the creation of a Bank for Decarbonising Industry, which will channel funding from sources such as the ETS (Emissions Trading System) and InvestEU.
The European Investment Bank (EIB) Group will also play a key role by launching new financial instruments, including:
• A network production package to support manufacturers of clean energy infrastructure.
• A counter-guarantee scheme for power purchase agreements (PPAs) benefiting SMEs and energy-intensive industries.
• A CleanTech guarantee instrument under the Tech EU programme, backed by InvestEU.
A Political Priority for the EU’s Future
In her 2024-2029 policy agenda, President von der Leyen committed to finalising the Clean Industrial Deal within the first 100 days of the Commission’s new mandate. The initiative is positioned as a key priority for ensuring Europe’s industrial competitiveness and economic prosperity in the transition to a cleaner economy.
Source: EC and ISBnews
Photo: European Commission President Ursula von der Leyen
