After a drive to boost the production of ‘net zero emission’ technologies, attention is now turning to energy-intensive sectors. This European industry, which includes very fragile sectors such as steel, must be saved on the one hand, and decarbonised on the other. The European Commission intends to make this its priority, announcing new funding, more flexible rules and incentives as part of its Clean Industrial Deal. It is also tackling the big issue of energy prices in an action plan for affordable energy (see other news).
To help its industry rapidly, the Commission intends to mobilise over €100 billion in the short term to support clean production in the EU. To achieve this, it is proposing a ‘Bank for Industrial Decarbonisation’, which should free up some €100 billion in funding. This bank would draw on available resources from the Innovation Fund, additional revenues from the Emissions Trading System (ETS) and the revision of the InvestEU programme.
“If you add all up, you could raise up to €100 billion over the next ten years. But then if you leverage that, if you put private sector money next to that you could easily add up to €400 billion", explained the European Commissioner for Climate Action, Wopke Hoekstra.
The revision of the InvestEU regulation, also proposed on Wednesday 26 February, should, on its own, make it possible to mobilise up to €50 billion in public and private investment, according to the Commission (see other news).
To take this a step further, the Commission is due to launch a pilot project this year with a €1 billion auction, targeting the decarbonisation of industrial processes across different sectors.
These initiatives will be supplemented by a call for projects under the Horizon Europe 2026-2027 programme, with a budget of around €600 million. It should support projects that are “ready for deployment”, but the Commission is not giving any further details at this stage.
In terms of possible support from Member States, the Commission is proposing to review the rules on state aid: in the short term through a specific framework for clean industry (‘Clean industrial deal state aid framework’, or CIDSAF) and, in the long term, through reform of the general rules on state aid (see EUROPE 13582/1).
Member countries could also use taxation to encourage clean projects, according to the Commission, which will publish recommendations along these lines at a later date.
Stimulating demand both inside and outside the EU. As previously reported, the European Commission wishes to support its industry by stimulating demand in the Union for clean, local products (see EUROPE 13582/1). This means pilot markets, on the one hand, and European preference in public procurement and public funding programmes, on the other.
“Week after week, I hear the same thing from the entrepreneurs and employees I meet: we have made efforts to decarbonise, but there is not enough demand for clean steel or clean cement”, stressed Stéphane Séjourné, Executive Vice-President of the European Commission.
For example, the Commission wants to introduce sustainability, resilience and ‘Made in Europe’ criteria into public procurement contracts in strategic sectors. This will involve a review of the relevant rules in 2026.
Later this year, the act to accelerate industrial decarbonisation will provide other concrete solutions: for example, a label for industrial products indicating their carbon intensity is being developed.
Since European companies need to be competitive on the international stage, it is crucial to open up as many markets as possible to them, insists the Commission. It therefore emphasises the importance of concluding as many agreements as possible with partners around the world.
Access to strategic raw materials. The Commission intends to continue the efforts begun with the Critical Raw Materials Act (CRMA). While the principles have been laid down, extraction activities and supply agreements need to be put in place quickly.
To achieve this, the Commission will be setting up a joint purchasing mechanism for critical raw materials. In particular, this should mean lower costs for European buyers. A dedicated centre should enable this demand to be aggregated.
As far as extraction on European soil is concerned, projects should be speeded up from now on, according to the Commission. “As I speak, our departments are in the process of finalising a list of several dozen raw materials exploitation projects in the four corners of Europe”, assured Mr Séjourné.
Finally, circularity is an important part of this equation, and the European Commission is due to present a circular economy act in 2026, which will deal in particular with raw materials.
See the Clean Industrial Deal https://aeur.eu/f/fo9 (Original version in French by Léa Marchal)