The European Commission has launched a business plan to increase the competitiveness and resilience of European industry. The Clean Industrial Deal aims to secure the future of manufacturing in Europe while accelerating decarbonisation.

Presented in February 2025, the initiative aims to address challenges posed by high energy costs and what it describes as “fierce and often unfair global competition”.

The Deal aims to position decarbonisation as a significant driver of growth for European industries. It aims to provide greater certainty and predictability for companies and investors, and support the EU’s goal of becoming a decarbonised economy by 2050.

Presenting the Deal, European Commission (EC) President Ursula von der Leyen said that European companies faced slowing demand for clean products, and investments moving elsewhere. According to von der Layen, “too many obstacles still stand in the way of our European companies from high energy prices to excessive regulatory burden,” and the Clean Industrial Deal is designed to address these issues and “make a clear business case for Europe”.

The Clean Industrial Deal focuses on energy-intensive industries and clean tech sectors.

Energy-intensive industries require support for decarbonisation and electrification due to high energy costs, global competition and complex regulations. The Deal sees Clean tech as central for future competitiveness, growth, and industrial transformation.

Circularity is a key element of the Deal. The plan aims to maximise use of EU countries’ resources and reduce dependency on third-country suppliers for raw materials.

As part of the Deal, “Action Plans” are planned for the automotive industry, steel and metals, and other tailored actions for the chemical and clean tech industries.

As part of the Deal, the European Commission has adopted an Action Plan on Affordable Energy. It aims to speed up the roll-out of clean energy, accelerate electrification, and complete the internal energy market with physical interconnections. In addition, it also aims to improve energy efficiency while reducing reliance on imported fossil fuels.

An Industrial Decarbonisation Accelerator Act will introduce European preference criteria in public procurement for strategic sectors. It launch a voluntary carbon intensity label for industrial products, starting with steel in 2025, followed by cement. The Commission aims to simplify and harmonise carbon accounting methodologies as well. This will aim to better inform consumers and reward manufacturers for decarbonisation efforts.

Initially, over €100 billion will be made available to support EU-made clean manufacturing. This will include €1 billion in guarantees under the EU’s current Multiannual Financial Framework.

The Commission will adopt a new Clean Industrial Deal State Aid Framework to allow for quicker approval of state aid for renewable energy deployment, industrial decarbonisation, and the expansion of clean tech manufacturing capacity.

The EU Innovation Fund will be strengthened, and an Industrial Decarbonisation Bank, aiming for €100 billion in funding, will be proposed. This will draw on Innovation Fund resources, ETS revenues, and a revised InvestEU. The InvestEU Regulation will be amended to increase its risk-bearing capacity. This will contribute a further €50 billion in additional private and public investment in areas like clean tech, clean mobility, and waste reduction.

The European Investment Bank (EIB) Group will also introduce new financing instruments, including a ‘Grids manufacturing package’, a joint Commission-EIB pilot programme for Power Purchase Agreement (PPA) counter-guarantees for SMEs and energy-intensive industries, and a CleanTech guarantee Facility under the Tech EU programme powered by InvestEU.

A Circular Economy Act is planned for 2026 to accelerate the circular transition. This will aim for 24% of materials to be circular by 2030, using scarce materials more efficiently and reducing EU dependencies on global supply.

The EU aims to forge reliable international partnerships through new Clean Trade and Investment Partnerships to diversify supply chains. Simultaneously, the Commission intends to act more decisively to protect EU industries from unfair global competition and over-capacities. It will use trade defence instruments and simplify and strengthen the Carbon Border Adjustment Mechanism (CBAM).