The European Commission has introduced the Clean Industrial Deal to strengthen European industry while accelerating decarbonisation. The strategy aims to lower energy costs, promote clean technology, and ensure manufacturing resilience in response to global competition and high energy prices.
The deal focuses on energy-intensive industries and clean technology, providing support for high-energy sectors to transition to electrification and reduce emissions. Investment in clean technology will enhance industrial competitiveness and reduce reliance on imported raw materials. Lowering energy costs is central to the plan, with the Action Plan on Affordable Energy accelerating the shift to clean energy, improving electrification, and reducing dependence on fossil fuels.
To boost demand for clean products, the Industrial Decarbonisation Accelerator Act will introduce sustainability criteria in public procurement. A carbon intensity label for industrial products, starting with steel in 2025, will incentivise companies to reduce emissions and allow consumers to make informed choices.
The deal will mobilise over €100 billion to finance the clean transition, including new state aid measures for renewable energy projects, an expanded Innovation Fund, and the creation of an Industrial Decarbonisation Bank. The European Investment Bank (EIB) will introduce financial instruments to support grid component manufacturing, clean technology, and power purchase agreements.
A circular economy is central to the deal, with the EU setting up a Critical Raw Material Centre to secure essential materials and reduce reliance on external suppliers. The Circular Economy Act, planned for 2026, will promote efficient resource use, with a target of 24% circular materials by 2030.
To ensure a fair global playing field, the EU will launch Clean Trade and Investment Partnerships and strengthen trade defence mechanisms against unfair competition. The Carbon Border Adjustment Mechanism (CBAM) will also be simplified and reinforced to protect European industries.
The deal places strong emphasis on workforce development, with the creation of a Union of Skills to enhance industrial expertise. Up to €90 million from Erasmus+ will support skills training and help workers transition to new roles in clean industries.
By integrating competitiveness with sustainability, the Clean Industrial Deal seeks to secure the future of European manufacturing while ensuring a low-carbon, resilient economy.
