The European Commission (EC) submitted on 26 February 2025 Announcement on the Clean Industry Deal, which represents a joint plan for competitiveness and decarbonisation continent. Europe's industrial base is central to its identity and competitiveness, having driven economic growth and sustained the social model for decades. In the current era of rising geopolitical tensions, slow economic growth and technological competition, a decarbonisation and competitiveness strategy is also becoming a security imperative.

Ambitious Goals and Growth Strategy

The Clean Industry Agreement is described as a transformative business plan that aims to accelerate decarbonization, reindustrialization and innovation across Europe, while strengthening its resilience. The aim is to increase sustainable and resilient manufacturing in Europe and achieve a decarbonised economy by 2050, with a 90% reduction in net greenhouse gas emissions by 2040. This ambitious framework provides predictability and certainty for investors and businesses.

Particular emphasis is placed on two interconnected areas: energy-intensive industries, which urgently need support for decarbonisation and face high energy prices and unfair global competition, and the sector clean technologies, which is the cornerstone for future competitiveness and transformation.

The EC has identified six key drivers of growth: affordable energy, lead markets, financing, circularity and access to materials, global markets and international partnerships, and skills.

Access to affordable energy

Ensuring affordable energy is crucial, especially as average energy prices in the EU are higher than in our trading partners. The situation is exacerbated by Europe's dependence on imported fossil fuels. The solution is to accelerate electrification and the transition to clean, domestically produced energy, with the aim of completing a fully integrated single energy market.

The Commission adopts an Action Plan for Affordable Energy Prices (COM(2025) 79 final). Key measures include reducing energy bills through a reformed electricity market design, as well as a rapid increase in the number of power purchase agreements (PPAs) and contracts for difference (CfDs). The European Investment Bank (EIB) is launching a pilot programme for corporate PPAs with an indicative amount of EUR 500 million to provide counter-guarantees. In addition, State aid rules will be simplified by June 2025 to accelerate the deployment of renewables and the decarbonisation of industry.

Financing and Investments

The transition requires annual investments of around €480 billion more than in the previous decade. In the short term, the Clean Industry Agreement will mobilise more than EUR 100 billion.

The Commission will propose to establish Bank for Industrial Decarbonization, which is to provide €100 billion in financing (comprising the Innovation Fund, additional ETS revenues and the revision of the InvestEU programme). Managed by the future Competitiveness Fund, this bank is to support projects where carbon reductions are measured, including through carbon contracts for difference.

The new State aid framework for the Clean Industry Agreement will extend the planning horizon to five years, with the aim of attracting private investment, simplifying rules and maintaining a level playing field.

Leading Markets, Circularity and Skills

To create demand for climate-neutral products, the Accelerating Industrial Decarbonization Act will introduce criteria sustainability and resilience in public procurement to support clean European supplies. This act will also introduce voluntary carbon intensity labelling industrial products, starting with steel in 2025.

Circulation (circularity) is key to reducing dependency and increasing resilience. The ambition is for the EU to become a world leader in the circular economy by 2030. The Commission will adopt in 2026 Circular Economy Act, which will enable the free movement of circular products and secondary raw materials and stimulate demand for recyclates. This pillar will also swiftly implement the Critical Raw Materials Act and establish EU Centre for Critical Raw Materials.

In the area skills The Commission will present a concept Union of Skills, which aims to ensure that employers have access to the expertise needed for the transformation. It will also be ready quality jobs plan in cooperation with social partners, which will support a just transition and decent working conditions.

The Clean Industry Agreement serves as a comprehensive framework through which the European Union aims to put decarbonisation and circularity at the heart of its economic policy and secure a sustainable future for manufacturing in Europe. JRi