On 26 February 2025, the European Commission presented the Clean Industry Agreement ('Clean Industrial Deal"), which follows on from the Green Deal. Its purpose is to accelerate the transition to a decarbonised economy and strengthen the EU's industrial competitiveness. The agreement goes hand in hand with Affordable Energy Action Plan, aimed at reducing energy prices for consumers and businesses and addressing the EU's dependence on energy imports.

Six key areas to support the European economy have been identified: affordable energy, lead markets, investment, circularity, international partnerships and a skilled workforce. These areas will be complemented by reducing bureaucracy and better policy coordination.

1. Available energy

The Affordable Energy Action Plan responds to high energy prices in Europe caused by inadequate infrastructure, import dependency and volatile prices. It includes measures to complete the Energy Union, strengthen renewables and infrastructure, simplify permit procedures and introduce long-term energy contracts.

2. Leading markets

The agreement aims to stimulate demand for clean technologies, for example through public procurement and a new law on accelerated industrial decarbonization. It could also introduce voluntary carbon footprint labeling for products and regulations supporting low-carbon materials.

An important sector will be the development of the hydrogen market – the Commission plans to define standards for the production of low-carbon hydrogen and introduce a mechanism for aggregating demand for it, in particular in maritime and air transport.

3. Investments

To finance the transition, the Commission plans to increase support from the EU Innovation Fund and the InvestEU Regulation. The new State aid framework aims to attract private investment, set clear rules and ensure a level playing field for Member States.

4. Circularity and access to raw materials

The Critical Raw Materials Act will be implemented and a new raw materials purchasing mechanism (EU Critical Raw Materials Hub) will be created. Measures will be taken to strengthen the single market for recyclates and secondary raw materials, including new eco-design regulations and a circular economy law planned for 2026.

5. International partnerships

To facilitate access to raw materials and clean technologies, the Commission plans new international partnerships (CTIPs) and a simplification of the Carbon Border Adjustment Mechanism (CBAM). The Commission will also strengthen the protection of the European market against unfair trading practices.

6. Jobs and a just transition

The agreement focuses on quality jobs, reskilling workers and a socially fair transition through the Skills Union and the European Just Transition Observatory, which will monitor working conditions, training and social dialogue. The Commission will provide guidance to Member States on social leasing of green technologies financed by the Social Climate Fund.

Implementation

The Commission will prepare sectoral plans for key industries – such as the automotive, chemical or steel industries – to help them transition to cleaner technologies.

The Clean Industry Agreement lays the foundations for a long-term transition to a sustainable and competitive economy, but its success will depend mainly on the ability to consistently implement the planned measures. Spring