Commission unveils Clean Industrial Deal. It is set to change the rules of the game

Last week, the European Commission unveiled the Clean Industrial Deal initiative. Its aim is to strengthen the competitiveness and resilience of European industry while accelerating its decarbonisation.

According to the Commission, the deal will drive growth in European industry. The sector is at risk amid rising energy costs and intensifying global competition. The deal is part of the strategy to achieve net-zero emissions by 2050. When presenting the initiative, Commission President von der Leyen stressed the urgent need to address the current challenges facing the development of European industry, such as high energy prices and regulatory burdens. The deal aims to remove these obstacles and create an attractive business environment for European companies.

The deal focuses primarily on two interconnected sectors: energy-intensive industries and clean technologies. Energy-intensive industries need support in their transition to electrification and decarbonisation, as they currently face high operating costs and global competition. Clean technologies are essential to Europe’s industrial transformation and generate innovation for sustainable economic growth.

Reducing costs and decarbonisation

To ensure businesses remain competitive, the Commission has outlined key initiatives. Reducing energy costs is a priority. Proposed measures include financial support for power purchase agreements (PPAs), relief from certain taxes and fewer barriers to permitting renewable energy projects. Measures to accelerate the decarbonisation of industry will stimulate demand for green products made in the EU by including sustainability criteria in public and private procurement. New legislation will also introduce voluntary carbon-intensity labelling, starting with steel in 2025 and later expanding to other sectors, such as cement.

More than EUR 100 billion will be allocated through several funding mechanisms, including a new state aid framework for the Clean Industrial Deal. The Industrial Decarbonisation Bank will also play a role, as will the European Investment Bank (EIB), which will launch targeted financial instruments to support industrial growth.

The Commission also announced a review of some existing legislation. A new delegated act on low-carbon hydrogen will be adopted in the first quarter of this year. The Q&A document on renewable fuels of non-biological origin (RFNBOs) will also be updated. In the second half of the year, the Commission will publish a report on the CBAM measure, to be followed by amendments to the rules.