The European Commission has launched an action plan to enhance the competitiveness and resilience of industries while accelerating decarbonisation and securing Europe’s industrial transformation. Hydrogen is among the key solutions being prioritised.
The Clean Industry Pact aims to boost competitiveness by providing companies and investors with a clear framework, reaffirming Europe’s commitment to achieving a net-zero economy by 2050. “Demand for environmentally friendly products has weakened, and some investments have shifted to other regions. We recognise that European companies still face significant challenges, from high energy costs to excessive regulatory burdens,” acknowledged European Commission President Ursula von der Leyen.
A Plan for Affordable Energy
Reducing energy costs is a top priority. To address this, the Commission has adopted an action plan for affordable energy, designed to lower energy expenses for industries, businesses, and households. This legislative initiative aims to accelerate the deployment of clean energy and eliminate Europe’s reliance on imported fossil fuels.
The plan also seeks to speed up industrial decarbonisation by promoting EU-made clean products. To achieve this, the Commission will introduce sustainability, resilience, and ‘Made in Europe’ criteria for both public and private procurement. By 2026, these criteria will be integrated into public procurement in strategic sectors. Additionally, a voluntary carbon intensity label for industrial products will be introduced—starting with steel in 2025, followed by cement—to provide consumers with transparent information and enable producers to benefit from their decarbonisation efforts. Alongside this, the Commission will present an industrial roadmap for steel and metals, as part of its broader automotive strategy.
An Industrial Decarbonisation Bank
The European Commission also plans to revise state aid regulations to simplify and expedite approvals for renewable energy projects, supporting industrial decarbonisation and ensuring adequate production capacity for clean technologies.
A key component of this initiative is strengthening the Innovation Fund and establishing an Industrial Decarbonisation Bank, backed by €100 billion*. Additionally, the Commission intends to amend the InvestEU regulation to enhance risk-taking capacity, potentially unlocking up to €50 billion in additional private and public investment—particularly in clean technologies, sustainable mobility, and waste reduction. Meanwhile, the European Investment Bank (EIB) will roll out a range of financial instruments to support the Clean Industry Pact.
Finally, the pact underscores the importance of securing access to critical raw materials, encouraging joint procurement initiatives among stakeholders, and promoting a circular economy to enhance metal recycling and reuse.
* Funding will be sourced from the Innovation Fund, additional revenues from parts of the ETS Directive, and revisions to InvestEU.
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