After repeated delays from sharp internal divisions, the European Commission has published the Industrial Accelerator Act (IAA), aiming to leverage the Single Market to boost demand for “Made in Europe” low-carbon products and net-zero technologies.
- This arrives at a critical juncture for Europe’s industries who are grappling with high energy prices, global overcapacities, supply chain vulnerabilities, and geopolitical trade weaponisation while investing in new technologies and manufacturing capacities. Recent developments in the Middle East and volatile energy markets further exacerbate these challenges, exposing Europe’s strategic dependencies and weaknesses and making bold industrial policy actions toward efficiency and electrification even more pressing.
- The IAA marks the EU’s strategic effort to integrate its industrial, trade, climate, and market policies to counter concerted industrial strategies from global competitors like China, who are vying for dominance in future clean technologies, balancing support for European industry with open trade commitments and new partnership models.
- While the outcome aims to strike a pragmatic balance, it waters down ambition in key areas like clean lead markets, falling short of the bold mandates needed to counter dependencies, mobilise transformative investments, and fully anchor clean industrial growth. Amid recent pressures on the EU ETS that have sparked investment uncertainty, it is crucial not to undermine this fundamental instrument, whose investment signals underpin the objectives of the IAA by providing price signals and certainty for Europe’s transformation towards a resilient, competitive, and decarbonised economy
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Manon Dufour, Executive Director, Brussels at E3G, said:
“The long-awaited Industrial Accelerator Act will be a defining test of Europe’s ambition to be safe, competitive and strategically autonomous — and, in truth, it may already risk falling short of what this moment demands.
Europe knows how to act when security is at stake. After Russia’s brutal invasion of Ukraine exposed our vulnerability to fossil fuel coercion, we accelerated renewables, strengthened efficiency and forged new energy partnerships at record speed. That response proved we can move decisively when our strategic interests are threatened. We must now bring the same urgency to European industry.“
Domien Vangenechten, Programme lead, EU industry at E3G, said:
“Amid turmoil in the Middle East spiking energy prices and exposing once more Europe’s fossil fuel vulnerabilities, industries are craving predictable, stable frameworks to drive decarbonisation. The IAA was hoped to deliver vital support and demand certainty for these investments, but its timid lead market provisions risk falling short, while recent pushback against the ETS undermines confidence – creating a dangerous cocktail at a time when slashing fossil dependencies and investing in industrial renewal has never been more urgent”
Elina Pihlajamäki, Policy advisor, EU industry at E3G, said:
“The IAA is a step forward, but it falls short of establishing credible, durable demand for clean products across sectors. Without systematic low-carbon requirements, stronger private demand incentives and a predictable ramp-up in ambition, industry will not get the investment signal it needs to scale.”
Eva Pander Maat, Policy advisor, EU trade at E3G, said:
“International cooperation is crucial to the EU’s clean transition, which in turn is a necessary precondition for its future competitiveness and resilience. The EU must therefore balance its industrial strategy with a cooperative approach in the adoption and implementation of the Industrial Accelerator Act. This balance will be key to safeguarding the Union’s trade and investment partnerships and its position as a trustworthy ally in an increasingly unstable world.”
Mark Hagen, Senior Policy Advisor, EU Steel Transition
“With the Industrial Accelerator Act proposal now excluding a label for low-carbon steel products, valuable time has been lost and there is now no clear definition or timeline for the introduction of low-carbon steel. It now falls on the Commission to ensure a rapid process toward both in order to provide incentives to steel producers and consumers to innovate, invest and decarbonize.”
Available for comment
Elina Pihlajamäki (EN, FI), Policy Advisor, EU Industry
m: +32 (0) 496 52 58 59| e: elina.pihlajamaki@e3g.org
Domien Vangenechten (EN, NL), Program Lead, EU industry
m: +32 (0) 474 87 18 27| e: domien.vangenechten@e3g.org
