Clean Industrial Deal: EU to focus on competitiveness and decarbonisation

The European Commission today unveiled the ‘Clean Industrial Deal’ – an ambitious plan that combines industry, climate action and competitiveness. The aim is to drive decarbonisation while strengthening Europe's manufacturing base.

Responding to high energy costs and global competition

Europe's industry is under pressure: high energy costs, fierce competition and complex regulation are weighing heavily on businesses. The Clean Industrial Deal provides a clear framework and certainty for investors. The aim is to make Europe a climate neutral economy by 2050.

The European Commission is now taking measures to make the regulatory environment more efficient and reduce red tape for businesses.

Commission President Ursula von der Leyen emphasises: ‘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. 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.’

The Clean Industrial Deal focuses on

1. Energy-intensive industries, which urgently need support to decarbonise and electrify. The sector faces high energy costs, unfair global competition and complex regulations that affect its competitiveness.
2. Clean technologies are at the heart of future competitiveness and growth and are crucial for industrial transformation. The circular economy is also a key element of the deal, as we need to maximise the EU's limited resources and reduce over-dependence on third country suppliers of raw materials.

The Deal is designed to boost the entire value chain, with clear and targeted actions. It sets the framework for tailored action in key sectors. The European Commission will present an action plan for the automotive industry in March, followed by steel and metals in the spring. Further measures are in the pipeline for the chemicals and cleantech industries.

Key success factors for European industry:

1. Affordable energy: The EU action plan for affordable energy lowers energy costs and accelerates the uptake of renewable energy.
2. Boosting demand for clean EU products: The law on accelerating industrial decarbonisation aims to make Europe's economy greener and more independent. It specifically directs demand and orders towards clean goods produced in the EU. Sustainability, resilience and the 'Made in Europe' label will become fixed benchmarks in public and private procurement - a market-changing lever.
3. Securing financing: 100 billion will be mobilised, including guarantees, an innovation fund and a bank for industrial decarbonisation.
4. Raw materials and circular economy: An EU centre for critical raw materials will pool industry's raw material needs to negotiate better prices. A law on the circular economy will follow in 2026 to reduce global dependencies.
5. Global trade strategy: New partnerships and trade agreements will strengthen supply chains and protect against unfair competition.
6. Developing a skilled workforce: Investing in education and training will safeguard jobs and innovation.

Conclusion: Europe's chance for a green industrial revolution

The Clean Industrial Deal is based on growth through sustainability. With clear rules, financial support and strategic partnerships, the EU is securing its industrial future. Europe's economy will remain competitive - climate-friendly and strong.

Find out more:

• Press release from the European Commission
• Factsheet