The European Commission has launched an ambitious new initiative, the Clean Industrial Deal, designed to strengthen the resilience and competitiveness of European industries while accelerating the decarbonisation of the economy. During times of high energy prices and global competition, the Clean Industrial Deal puts decarbonisation at the heart of Europe’s strategy for sustainable future manufacturing.
Meeting Pressing Challenges
Confronted with escalating energy prices, fierce international competition, and the urgent necessity to address climate change, the Clean Industrial Deal gives industries essential support. The strategy emphasizes decarbonisation as central to growth, giving companies and investors assurance of Europe’s 2050 carbon-neutral ambitions.
President Ursula von der Leyen said,”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.”
She added, “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.”
Key Focus Areas
The Clean Industrial Agreement targets two key areas: clean technologies and energy-intensive industries. Energy-intensive industries such as steel, cement, and chemicals have high energy prices and complicated regulations, making decarbonisation a pressing challenge. Meanwhile, clean technology is the key to long-term industrial growth and transformation.
Circularity is also a central component of the Deal. By reducing reliance on raw materials from non-EU countries and maximizing the EU’s limited resources, the Commission aims to enhance sustainability across Europe’s industries.
Support for Industries: Action Plans and Financial Backing
The Commission will launch sector-specific action plans, beginning with the automotive industry in March 2025, followed by steel and metals. Additional plans will address the chemical and clean tech sectors later.
The Commission is investing over €100 billion in clean manufacturing, including extra guarantees under the current Multiannual Financial Framework. This funding will support the deployment of renewable energy, industrial decarbonisation, and the development of clean tech manufacturing.
Also read: European Commission Announces €4.6 Billion Investment in Decarbonization and Clean Hydrogen Projects
Promoting Circularity and Securing Raw Materials
A key focus of the Deal is ensuring access to critical raw materials for Europe’s industries. The Commission will establish joint purchasing schemes and a European Centre to access key raw materials and negotiate improved prices.
Additionally, the Act for Circular Economy to be passed in 2026 will facilitate reusing products, decrease interglobal dependencies, and establish good-quality jobs. Its objective is to render 24% of the materials circular by 2030.
To protect Europe’s industries, the Commission will create Clean Trade Partnerships and strengthen the Carbon Border Adjustment Mechanism. The EU will also invest in its workforce through the creation of a Union of Skills, with up to €90 million from Erasmus+ to develop sectoral skills and promote quality jobs linked to the green transition.