Released March 11, 2025 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The European Union (EU) has announced a 100 billion-euro (US$105 billion) funding plan to boost support for energy-hungry industries that face "high energy costs and fierce and often unfair global competition."
The Clean Industrial Deal will seek to boost the declining competitiveness of European manufacturers while at the same time helping fund the shift to a "low-carbon future." Operating on a number of fronts, the Deal will allow for "simplified and quicker approval of State aid measures for the roll-out of renewable energy, deploy industrial decarbonization, and ensure sufficient manufacturing capacity of clean tech". An Industrial Decarbonisation Bank will be set up to provide 100 billion euro (US$105 billion) in funding alongside a "Made in-Europe" criteria in public and private procurement. The European Commission (EC) and the European Investment Bank (EIB) will provide 500 million euro (US$525 million) to encourage the adoption of corporate power purchase agreements (PPAs) with low-carbon and renewable power developers. The EIB will counter-guarantee part of the PPAs undertaken by firms in energy-intensive industries, such as steel, cement and others. It will also launch a Grids manufacturing package, to provide counter-guarantees and other de-risking support to manufacturers of grid components. Industrial Info is tracking 671 steel projects and almost 650 cement projects in Europe worth US$46 billion and US$13 billion, respectively. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here and herefor the reports.
According to Eurostat, the EU's official statistics body, industrial production in the EU is down 1.7% compared to the same time last year. EU manufacturing output has been hit by a combination of weak domestic demand, high energy prices and Chinese competition. Launching the deal, Commission President Ursula von der Leyen said: "Europe is not only a continent of industrial innovation, but also a continent of industrial production. However, the demand for clean products has slowed down, and some investments have moved to other regions. We know that too many obstacles still stand in the way of our European companies from high energy prices to excessive regulatory burden. The Clean Industrial Deal is to cut the ties that still hold our companies back and make a clear business case for Europe."
Stéphane Séjourné, executive vice president for Prosperity and Industrial Strategy, added: "Today, Europe accelerates on its twin decarbonisation and reindustrialisation. This pact aims to position Europe as a world leader in clean industries - from boosting our production « made-in-Europe », to beefing up regulatory and financial support to our most strategic industrial supply chains. It also secures our unique European model of setting decarbonisation not only as an environmental goal, but also as our economic growth strategy."
The response for European industry groups has been supportive but most have called on the Commission to move faster. "Decisive measures on trade, carbon border adjustment mechanism (CBAM) and energy prices are essential in the immediate term to safeguard European steelmaking," said Axel Eggert, director general of the European Steel Association (EUROFER). "The Commission identifies the right challenges but falls short of providing concrete policy responses to turn the tide. Europe is at a geopolitical and economic crossroads. At a moment where alliances are being redrawn and the EU's security is under threat, European steel is not only a symbol but a determiner of European sovereignty."
Business lobby group BusinessEurope echoed the call for more speed. Director General Markus J. Beyrer said: "Nine months after the European Elections, we urgently need swifter and more impactful measures to avoid these challenges becoming a new operating reality for businesses. It is unlikely that the measures proposed today will be enough to lower energy costs in the short-term. We cannot wait until the end of the year for critical actions like those expected to be included in the Industrial Decarbonisation Accelerator Act. We urge the Commission to go beyond words and 'walk the talk', to ensure a competitive transition. This requires swifter and more consistent action."
Finally, the Commission will address the need for critical raw materials in what it called "circularity and access to raw materials". It said the EU, which relies heavily on external sources for many critical raw materials, has to "secure access to such materials and reduce exposure to unreliable suppliers." It will set up a mechanism enabling European companies to come together and aggregate their demand for critical raw materials. It will also create an EU Critical Raw Material Centre to jointly purchase raw materials on behalf of interested companies. In addition, it will introduce the Circular Economy Act in 2026 to accelerate the circular transition and ensure that "scarce materials are used and reused efficiently, reduce our global dependencies and create high quality jobs. The aim is to have 24% of materials circular by 2030." Increased protection measures from "unfair global competition and overcapacities" will be enacted through a range of Trade Defence and other instruments while it promised that it will simplify and strengthen the current Carbon Border Adjustment Mechanism (CBAM). CBAM adds a price to imported goods, like steel, based on carbon emitted during production in an effort to stop price undercutting but it has come in for criticism by Europe's heavy industries.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The Clean Industrial Deal will seek to boost the declining competitiveness of European manufacturers while at the same time helping fund the shift to a "low-carbon future." Operating on a number of fronts, the Deal will allow for "simplified and quicker approval of State aid measures for the roll-out of renewable energy, deploy industrial decarbonization, and ensure sufficient manufacturing capacity of clean tech". An Industrial Decarbonisation Bank will be set up to provide 100 billion euro (US$105 billion) in funding alongside a "Made in-Europe" criteria in public and private procurement. The European Commission (EC) and the European Investment Bank (EIB) will provide 500 million euro (US$525 million) to encourage the adoption of corporate power purchase agreements (PPAs) with low-carbon and renewable power developers. The EIB will counter-guarantee part of the PPAs undertaken by firms in energy-intensive industries, such as steel, cement and others. It will also launch a Grids manufacturing package, to provide counter-guarantees and other de-risking support to manufacturers of grid components. Industrial Info is tracking 671 steel projects and almost 650 cement projects in Europe worth US$46 billion and US$13 billion, respectively. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here and herefor the reports.
According to Eurostat, the EU's official statistics body, industrial production in the EU is down 1.7% compared to the same time last year. EU manufacturing output has been hit by a combination of weak domestic demand, high energy prices and Chinese competition. Launching the deal, Commission President Ursula von der Leyen said: "Europe is not only a continent of industrial innovation, but also a continent of industrial production. However, the demand for clean products has slowed down, and some investments have moved to other regions. We know that too many obstacles still stand in the way of our European companies from high energy prices to excessive regulatory burden. The Clean Industrial Deal is to cut the ties that still hold our companies back and make a clear business case for Europe."
Stéphane Séjourné, executive vice president for Prosperity and Industrial Strategy, added: "Today, Europe accelerates on its twin decarbonisation and reindustrialisation. This pact aims to position Europe as a world leader in clean industries - from boosting our production « made-in-Europe », to beefing up regulatory and financial support to our most strategic industrial supply chains. It also secures our unique European model of setting decarbonisation not only as an environmental goal, but also as our economic growth strategy."
The response for European industry groups has been supportive but most have called on the Commission to move faster. "Decisive measures on trade, carbon border adjustment mechanism (CBAM) and energy prices are essential in the immediate term to safeguard European steelmaking," said Axel Eggert, director general of the European Steel Association (EUROFER). "The Commission identifies the right challenges but falls short of providing concrete policy responses to turn the tide. Europe is at a geopolitical and economic crossroads. At a moment where alliances are being redrawn and the EU's security is under threat, European steel is not only a symbol but a determiner of European sovereignty."
Business lobby group BusinessEurope echoed the call for more speed. Director General Markus J. Beyrer said: "Nine months after the European Elections, we urgently need swifter and more impactful measures to avoid these challenges becoming a new operating reality for businesses. It is unlikely that the measures proposed today will be enough to lower energy costs in the short-term. We cannot wait until the end of the year for critical actions like those expected to be included in the Industrial Decarbonisation Accelerator Act. We urge the Commission to go beyond words and 'walk the talk', to ensure a competitive transition. This requires swifter and more consistent action."
Finally, the Commission will address the need for critical raw materials in what it called "circularity and access to raw materials". It said the EU, which relies heavily on external sources for many critical raw materials, has to "secure access to such materials and reduce exposure to unreliable suppliers." It will set up a mechanism enabling European companies to come together and aggregate their demand for critical raw materials. It will also create an EU Critical Raw Material Centre to jointly purchase raw materials on behalf of interested companies. In addition, it will introduce the Circular Economy Act in 2026 to accelerate the circular transition and ensure that "scarce materials are used and reused efficiently, reduce our global dependencies and create high quality jobs. The aim is to have 24% of materials circular by 2030." Increased protection measures from "unfair global competition and overcapacities" will be enacted through a range of Trade Defence and other instruments while it promised that it will simplify and strengthen the current Carbon Border Adjustment Mechanism (CBAM). CBAM adds a price to imported goods, like steel, based on carbon emitted during production in an effort to stop price undercutting but it has come in for criticism by Europe's heavy industries.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
