EU: Planned Industrial Decarbonisation Accelerator Act

 

The EU is planning an Industrial Decarbonisation Accelerator Act.  It will aim at supporting the decarbonisation of industries, especially energy intensive sectors. The objective of the Act is to stimulate and accelerate investments in Europe, support industries’ competitiveness and productivity, while ensuring their decarbonisation. Further, the initiative will aim at speeding-up procedures and facilitate investments, including by creating markets for decarbonised products.

The Act can define quotas for growing green products in lead markets to support the decarbonisation of the heavy industry (e.g. quotas of green steel in the automotive or the wind industries). As the decarbonisation of the heavy industry is investment-intensive, securing the demand is key to support producers.

In the beginning of January 2025, a Commissioners’ Project Group on the Clean Industrial Deal was established which is tasked with the coordination of the work to present the Clean Industrial Deal in the first 100 days of the EU Commission’s mandate to set out how to accelerate the decarbonisation of EU industry while strengthening its competitiveness.

The Group shall maintain this coordination throughout the preparations of related deliverables, such as the industrial decarbonisation accelerator act, but also other issues and topics such as new State aid framework, clean trade and investment partnerships, revision of public procurement rules, action plan for affordable energy, circular economy act, strengthening grid infrastructure, sustainable transport investment plan and measures against carbon leakage.

Currently, a call for evidence and a public consultation are planned by the EU Commission and should take place in Q1 of 2025.