- EU proposes new policy to increase demand for low-carbon and locally produced industrial technologies.
- The initiative targets key sectors including automotive, steel, cement, and clean energy manufacturing.
The Industrial Accelerator Act was adopted as a legislative proposal by the European Commission on March 4 to stimulate demand for low-carbon technologies and products manufactured within Europe. The initiative introduces targeted “Made in EU” and low-carbon requirements in public procurement and government support programs to strengthen regional manufacturing and accelerate clean industrial growth.
Strengthening European Manufacturing
The policy focuses on strategic sectors including steel, cement, aluminium, passenger vehicles, and net-zero technology industries. It also establishes a framework that can later be expanded to other energy-intensive sectors such as chemicals.
Manufacturing accounted for 14.3% of the European Union’s GDP in 2024. Through this policy framework, policymakers aim to raise the share of manufacturing output to 20% of EU GDP by 2035, reinforcing industrial competitiveness while supporting climate objectives.
Procurement Preferences and Strategic Investments
The proposal introduces procurement preferences for products produced within the region and those demonstrating lower carbon footprints. These criteria will influence how governments allocate contracts and distribute public funding across key industries.
Investment Conditions for Emerging Industries
To strengthen domestic supply chains, the legislation establishes new conditions for foreign direct investments exceeding EUR 100 million in emerging sectors such as batteries, electric vehicles, photovoltaics, and critical raw materials. The framework is designed to promote technology transfer while supporting the creation of skilled employment opportunities.
Industrial Acceleration Areas and Market Reciprocity
The legislation also proposes the creation of Industrial Acceleration Areas that encourage industrial symbiosis and the clustering of clean manufacturing projects. These zones are expected to facilitate faster project deployment and improve collaboration across industries.
In addition, the policy promotes reciprocal access to procurement markets by granting equal treatment to countries that allow European companies to compete in their public tenders. The proposal will now undergo negotiations between the European Parliament and the Council of the European Union before final adoption and implementation.
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