COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Delivering on the Clean Industrial Deal I
Date: 2025-07-02
Institutions: European Commission, Secretariat-General
Subjects: EU financing, EU industrial policy, available energy, carbon neutrality, circular economy, clean technology, competitiveness, energy transition, renewable energy, sustainable development

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 2.7.2025  COM(2025) 378 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS               Delivering on the Clean Industrial Deal I  
 
 
Delivering on the Clean Industrial Deal  I 

1. Introduction 

In  the  Clean  Industrial  Deal1,  the  Commission  presented  concrete  measures  to  further  drive  the 
decarbonisation  and  competitiveness  of  European  industry.  The  measures  respond  to  the  call  for  a 
well-integrated approach across all EU policies in support of this dual objective. They also show the 
EU’s  commitment  to  addressing  the  challenges  our  industry  faces,  such  as  the  gap  in  energy  prices 
between the EU and its main competitors, sluggish demand or unfair global competition, while giving 
companies, large and small, as well as investors the certainty that Europe remains fully committed to 
become a climate-neutral economy by 2050, taking into account fairness, technological neutrality and 
cost-efficiency,  ensuring  a  just  transition  and  enhancing  environmental  sustainability.  Investing  in 
decarbonisation  will  boost  the  competitiveness  of  Europe’s  economy,  strengthen  its  economic  and 
energy resilience and security, and create stable and future-proof jobs.  

In the midst of the global race to net zero, the Clean Industrial Deal will also enable the EU to lead in 
developing the clean technology markets of the future. According to the International Energy Agency, 
the global market for the top six mass-manufactured clean energy technologies2 is set to rise to more 
than  USD  2  trillion  by  2035  –  close  to  the  average  value  of  the  world’s  crude  oil  market  in  recent 
years3. Meanwhile, clean technology trade is expected to reach USD 575 billion by 2035. As shown in 
the  latest  European  Investment  Bank  investment  report4,  Europe’s  strong  position  in  cleantech 
innovation  and trade is  paying  off.  European  exports  of  low-carbon technologies,  for instance,  have 
risen  65%  since  2017, compared  with  79%  for  China  and  only  22% for  the  United  States.   The  EU 
must ensure to retain and strengthen this competitive edge. 

To  maintain  this  strong  position,  industry  needs  predictability  about  Europe’s  direction  of  travel,  a 
regulatory framework that minimises unnecessary red tape and a swift and effective implementation of 
all  measures  proposed.  Decarbonisation  and  reindustrialisation  are  two  sides  of  the  same  coin  and 
there  is  no  credible  path  to  decarbonisation  without  a  strong  and  resilient  European  industrial  base. 
That’s why, alongside the proposal to amend the European Climate Law setting a 2040 climate target, 
with the necessary flexibilities, this Communication shows that the delivery is already underway. Just 
a few months after the Clean Industrial Deal was presented, we are putting a first wave of actions in 
motion,  actively  supporting  the  industry  through  this  crucial  transition,  to  strengthen  European 
industrial base, foster a global level playing field and unlock including in innovation.   

Progress  has  been  made  in  all  six  core  business  drivers  identified  in  the  Clean  Industrial  Deal. The 
measures  strike  a  balance  between  supporting  the  ambitious  goals  of  the  Clean  Industrial  Deal  and 
maintaining  a  level  playing  field  in  the  Single  Market,  so  that  Member  States  can  provide  targeted 
financial  support  to  decarbonisation  efforts  and  for  building  sovereign  value  chains  in  clean  tech 
where necessary without creating undue competitive distortions. They also empower Member States to 
leverage  tax  incentives  as  a  catalyst  for  private  investment  in  decarbonisation  projects,  ultimately 
facilitating a swift transition to a clean and affordable European energy system.  

1 COM(2025) 85 final 
2 Solar photovoltaic, wind turbines, electric cars, batteries, electrolysers and heat pumps. 
3 International Energy Agency: Energy Technology Perspectives 2024, October 2024 
4 European Investment Bank, Investment Report 2024/2025: Innovation, integration and simplification in 
Europe, 2025 

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In parallel, the Commission has continued its engagement with stakeholders. Since the adoption of the 
Clean Industrial Deal, the Strategic Dialogues on the Future of the Automotive Industry and the Future 
of the European Steel Sector have led to dedicated Action Plans5, with concrete, sector-specific actions 
to  maintain  Europe’s  competitive  edge.  The  Commission  has  also  organised  a  Clean  industrial 
Dialogue  on  Circular  Economy  to  prepare  the  Circular  Economy  Act.  Further  measures  will  be 
presented  based  on  the  Dialogues  with  the  Pharmaceutical  and  the  Chemical  Industries,  addressing 
specific concerns of these sectors.  

The  work  to  reinforce  the  resilience  and  competitiveness  of  our  industries  goes  beyond  the  Clean 
Industrial Deal. The Single Market Strategy, the Savings and Investments Union Strategy, the Water 
Resilience  Strategy,  the  Communication  on  the  Union  of  Skills  accompanied  by  an Action  Plan  on 
Basic  Skills  and  a  STEM  Education  Strategic  Plan,  the  EU  Startup  and  Scaleup  Strategy,  among 
others, strengthen the Deal’s objectives. These are further reinforced by four Simplification Omnibus 
packages aimed at easing the regulatory burden.  

In the coming weeks and months, the Commission will decisively advance the implementation of the 
remaining measures outlined in the Clean Industrial Deal.  

2. First Package of Clean Industrial Deal Delivery 

A  crucial  component  in  achieving  the  ambitions  and  objectives  of the  Clean  Industrial  Deal  is 
the new Clean Industrial Deal State Aid Framework, adopted by the Commission on June 25.  The 
approval  of  more  than  EUR  85  billion  in  aid  by  June  2025  under  the  ‘transition’  sections  of  the 
Temporary  Crisis  and  Transition  Framework  demonstrates  that  simplified  State  aid  rules  can  both 
increase the scale and willingness of Member States to utilise State aid for green transition objectives. 
Furthermore, the fact that a majority of Member States had already begun implementing the measures 
to  accelerate the clean transition  under the Temporary  Crisis  and Transition  Framework  underscores 
the  practical  experience  gained  and  the  need  for  a  stable,  long-term  framework  to  replace  the 
temporary one and continue supporting industrial decarbonisation.  

The new State aid framework further simplifies and accelerates the process for Member States 
to  grant  aid  by  providing  clearer  and  more  flexible  criteria  for  assessing  State  aid  measures, 
offering  a  longer  planning  horizon,  and  increasing  investment  predictability  and  security  for 
businesses.  In  line  with  the  objectives  of  the  Clean  Industrial  Deal,  it  targets  all  industrial 
undertakings, with a focus on energy-intensive industries and the clean-tech sector and introduces aid 
measures to accelerate the rollout of renewable energy, investments in industrial decarbonisation and 
in manufacturing capacity for clean tech. Member States will be able to  help finance the expansion of 
clean  technologies  manufacturing  in  Europe,  using  both  recycled  and  primary  input,  contributing  to 
strengthening the resilience of European supply chains. It will also allow Member States to reduce the 
electricity cost of energy-intensive users operating in industries at risk of relocating outside the Union 
to  countries  where  environmental  regulations  are  absent  or  less  ambitious,  in  return  for 
decarbonisation investments. The new framework promotes the attraction of private funds by reducing 
investment risks in projects aligned with the objectives of the Clean Industrial Deal.  

Furthermore,  the  new  rules  contribute  to  creating  lead  markets  for  clean  products  and  facilitate  the 
combination  of  funding  from  the  Innovation  Fund  and  national  financing  by  facilitating  State  aid 
approval for Member States wanting to support projects with a Sovereignty seal under this fund. The 

5 COM(2025) 96 final and COM(2025) 125 final 

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new State aid framework complements the State aid rules, which remain fully available and also cover 
other measures that will contribute to the Clean Industrial Deal. Member States can notify measures 
supporting producers of clean technology, such as batteries, to reach efficient scale under applicable 
State  aid  rules.  Under  normal  market  conditions,  producers  of  clean  technology  should  be  able  to 
cover their operating costs without any further public support. The Commission stands ready to assist 
Member States to identify the appropriate ways to design, under the State aid rules, public support that 
addresses  market  failures,  is  necessary,  proportionate  and  does  not  unduly  distort  competition  and 
trade in the single market or to design such public support free of State aid. 

As announced in the Clean Industrial Deal, the Commission will also, as part of the on-going revision 
of the  General  Block  Exemption  Regulation,  assess if  and  how  State  aid rules should  be  updated to 
provide better incentives for industry to invest in upskilling, reskilling, quality jobs and recruitment of 
workers  for  a  just  transition. The  Commission  will  in  particular  look into  the  rules  covering  aid  for 
social  enterprises  and  recruitment  of  disadvantaged  workers.  In  that  context,  the  Commission  will 
develop  dedicated  guidance  to  assist  Member  States  when  designing  State  aid  measures  for  social 
support  and  social  investment.  Such  support  is  in  many  cases  either  not  considered  as  aid  or  block 
exempted under the General Block Exemption Regulation. 

In parallel with the new State aid framework, the Commission Recommendation on Tax Incentives, 
adopted  today,  encourages  investments  in  clean  technologies  and  industrial  decarbonisation, 
through  measures  like  accelerated  depreciation  and  tax  credits.  This  will  effectively  lower  the 
financial barriers for companies that invest in sustainability and boost lead markets for decarbonised 
products.  By  advocating  for  generous  accelerated  depreciation  up  to  immediate  expensing  and 
flexible,  refundable  tax  credits,  the  Commission  aims  to  provide  certainty  and  timely  support  to 
businesses.  

Our energy system is key to providing the right conditions for the decarbonisation of our economy. All 
zero  and  low  carbon  energy  solutions,  including  renewables,  nuclear,  energy  efficiency,  storage, 
CCUS,  carbon  removals,  geothermal  and  hydro-energy,  and  all  other  current  and  future  net-zero 
energy technologies , are necessary to decarbonise the energy system by 2040, as is the strengthening 
of  the  grid  and  storage  capacity.  To  provide  the  basis  for  Member  States  and  national  regulatory 
authorities  to  accelerate  the  transition  to  a  ,  affordable  and  more  flexible  energy  system,  with  well-
developed  grids  and  storage,  the  Commission  is  adopting  a  package  of  guidance  documents.  These 
documents cover (i) innovative technologies and forms of renewable energy deployment, (ii) the 
designation  of  dedicated  grid  and  storage  infrastructure  areas  and  (iii)  network  tariff 
methodologies.  By  supporting  the  deployment  of  additional  clean  energy  and  network  projects,  the 
implementation  of  this  guidance  package  will  also  benefit  EU  domestic  manufacturing  of  the 
respective clean technologies on which Europe has global leadership. 

The  guidance  on  innovative  forms  technologies  and  forms  of  renewable  energy  deployment 
supports  the  expansion  of  renewable  energy  sources,  helping  to  lower  the  costs  of  our  energy 
supply. Europe’s reliance on imported fossil fuels significantly contributes to volatile and high supply 
costs.  By  expanding  innovative  renewable  energy  sources  and  reaching  untapped  potential  (e.g. 
agrisolar, floating renewables, ocean energy), the EU can mitigate these costs. Between 2021 and 2023 

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EU electricity consumers already saved EUR 100 billion thanks to electricity generation from newly 
installed solar PV and wind capacity.6 

The guidance on the designation of grid and storage areas is designed to reinforce and accelerate 
the  expansion  of  our  grids,  as  well  as  accelerate  the  deployment  of  storage  solutions.  This  is 
crucial  in  light  of  the  expected  growth  in  decentralised  renewable  generation,  increasing  electricity 
demand,  and  existing  constraints  on  the  electricity  grid,  such  as  the  need  to  connect  recharging 
infrastructure for electric vehicles,  with its benefits for storage and for the energy system overall,  as 
well  as  the  need  to  modernise  40%  of  existing  grids.  Moreover,  renewable  electricity  capacity  is 
growing rapidly, with around 78 GW added in 2024 alone. Given that annual expansion of renewable 
electricity capacity should reach around 100 GW on average up to 2030, permit-granting procedures 
for  renewable  energy  storage  projects  and  the  networks  that  integrate  renewable  energy  must  be 
significantly accelerated.  

The third guidance document, on network tariff methodologies promotes a network tariff design 
aimed at lowering overall system costs by enhancing flexibility and locational incentives as well 
as boosting the efficiency of grid usage and management. This shift to drive behavioural change is 
essential to effectively manage peak consumption periods in a cost-efficient way. Network tariffs can 
play an essential role by encouraging all system users to optimise their usage patterns. A coordinated 
approach  offers  significant  benefits,  including  reducing  grid  management  expenses  and  costly 
congestion,  improving  the  grid’s  capacity  to  absorb  renewable  generation,  and  limiting  the  need  for 
extensive grid reinforcements to what is necessary.  This will reduce the overall network costs paid for 
by consumers on their energy bills and directly benefit users contributing to energy system integration.  

Other  challenges  faced  by  industry  include  exposure  to  unfair  international  competition  and 
regulatory burden. Since the launch of the EU Emission Trading System (EU ETS), the risk of carbon 
leakage  has  been  effectively  addressed  by  granting  free  allowances  for  sectors  exposed  to  this  risk. 
Free allowances for EU ETS installations producing CBAM goods will be phased out from 2026 to 
2034, in parallel with the gradual phase-in of the CBAM’s financial obligations for imported goods. 
While CBAM addresses the risk of carbon leakage for the production of CBAM goods for the EU, the 
risk of carbon leakage for the production of CBAM goods for export markets might increase with the 
phase-out  of  free  allocation,  as  long  as  certain  third  countries  do  not  introduce  equivalent  carbon 
pricing. Various CBAM sectors have called for urgent action to address export carbon leakage. 

As announced in the Steel and Metals Action Plan, the Commission has therefore considered options 
on  how  to  address  this  risk.  Any  solution  should  fully  align  with  the  CBAM’s  environmental 
objectives, while respecting the relevant WTO rules. In addition, it should be implemented quickly to 
provide legal certainty and avoid undue administrative burden. Therefore, the Commission intends to 
make  a  dedicated  proposal  using  the  revenues  generated  by  CBAM  –  which  will  be  extended  -  to 
support  production  at  risk  of  carbon  leakage.  This  would  allow  the  affected  producers  to  be 
compensated proportionally to the phasing out of the free allowances subject to deliverables on long-
term decarbonisation. The scope will need to be established based on objective criteria. This scheme 
would  be in  place  for an  initially defined  period  with  a  review  in  2027. The  proposal  would  be  put 
forward  by the end of 2025, together with the proposal extending CBAM to downstream goods and 
introducing  anti-circumvention  measures,  and  it  will  be  without  prejudice  to  the  Commission’s 
existing  proposals  regarding  new  Own  Resources  for  the  EU  budget.  This  solution  aims  to  ensure 

6 IEA (2023), Renewable Energy Market Update - June 2023, IEA, Paris https://www.iea.org/reports/renewable-
energy-market-update-june-2023, Licence: CC BY 4.0 

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equal treatment for CBAM goods  - whether produced and sold in the EU, exported from the EU to 
third  countries  or    imported  into  the  EU    -  to  maintain  WTO-compatibility.  The  Commission  will 
provide further analysis of the risk of carbon leakage for the production of CBAM goods for exports in 
order to adequately design the measure and consult the CBAM sectors on these plans in advance of the 
proposal,  also  taking  into  account  specific  national  circumstances.  A  high-  level  dialogue  will  be 
organised to this effect. 

Simplification is another key pillar of the Clean Industrial Deal. Progress was made in a number of 
legislative areas aiming to reduce regulatory burden and enable industry to embrace the transition to a 
sustainable  economy  in  a  more  effective  and  pragmatic  way.  The  Carbon  Border  Adjustment 
Mechanism (CBAM) simplification proposal, which was adopted as part of the Omnibus I package, in 
February  2025,  aims  to  reduce  red  tape  and  ensure  a  smooth  implementation  of  CBAM  when  it 
becomes  fully  operative  in  January  2026.  Notably,  the  proposal  introduces  an  annual  mass-based 
threshold  of  50  tonnes  that  excludes  approximately  90%  of  importers  from  any  CBAM  obligations, 
while  ensuring  that  99%  of  emissions  are  covered  under  CBAM’s  scope. Earlier  this  month,  co-
legislators reached an agreement on the amended Regulation, which adheres to the main parameters of 
the Commission’s proposal. 

3.  Work ongoing in other areas of Clean Industrial Deal 

In  addition  to  the  first  set  of  concrete  actions  under  the  Clean  Industrial  Deal,  notable  progress  has 
been made across several areas related to this strategy. The implementation of the Affordable Energy 
Action Plan has advanced since its adoption in February 2025. On 16 June, the European Commission 
and the Polish Presidency of the Council of the European Union jointly launched the Energy Union 
Task Force. The Task Force will address technical and regulatory barriers hindering the completion of 
a genuine Energy Union, by enhancing the use and development of well interconnected infrastructures, 
addressing  national  permitting  barriers,  increasing  the  deployment  of  storage  and  utilisation  of 
flexibility services, improving coordination of regional, national and EU actions, and supporting key 
actions  for  the  implementation  of  the  Affordable  Energy  Action  Plan,  for  example  on  permitting, 
taxation and system flexibility.  

Finance is key. The Commission and the European Investment Bank have collaborated closely to 
develop  new financial  products  - eligible  under  the  InvestEU  Programme  -  designed to  reduce 
risks for private sector investments. On 19 June, the European Investment Bank (EIB) launched new 
schemes  to  offer  counter-guarantees  to  power  purchase  agreements  (PPAs)  between  clean  energy 
developers and industry, with EUR 500 million capability. This initiative seeks to facilitate access for 
the  industry  to  more  stable  energy  prices  and  drive  investment  in  new  generation  projects. 
Furthermore, the  EIB launched a  second  counter-guarantee scheme  to mitigate risks  associated  with 
manufacturing  new  grid  components  (applying  the  model  it  already  uses  for  the  wind  sector)  with 
EUR  1.5  billion,  which  is  crucial  for  the  expanding  network  needs  across  Europe,  as  well  as  the 
TechEU  programme  to  help  bridge  the  financing  gap  to  support  disruptive  innovation,  strengthen 
Europe’s industrial capacity and scale-up companies. It is also expanding the financing capability of 
the Wind Package from EUR 5 billion to EUR 6.5 billion, and established a new guarantee product for 
emerging clean tech with an EIB lending envelope of EUR 250 million to be supported by InvestEU. 

The Commission is also on track to launch a pilot for the upcoming Industrial Decarbonisation 
Bank,  by  the  end  of  2025.  With  a  budget  of  EUR  1  billion,  this  pilot  will  be  an  auction  aimed  at 
decarbonising industrial process heat through electrification and direct renewable heat (such as solar 

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thermal or geothermal). It will benefit companies across various industrial sectors including medium-
sized  enterprises.  It serves  as  a  pilot  for  the  Industrial  Decarbonisation  Bank  by  supporting  projects 
with carbon emission reduction as a metric. In April, a major stakeholder consultation demonstrated 
robust industry support for this initiative. Following this, the Commission has since published the draft 
auction terms and conditions for consultation.  

The Commission has also adopted the first two lists of Strategic Projects to be supported under 
the  Critical  Raw  Material  Act,  covering  projects  both  within  the  EU  and  in  third  countries.  The 
selected projects cover a wide range of strategic materials and value chain stages and will contribute to 
the  EU's  secure  supply  of  strategic  raw  materials.  To  ensure  their  timely  delivery,  the  projects  will 
receive  support  to  facilitate  public  and  private  investments  as  well  as  accelerated  permitting  for 
projects in the EU.  

Further  developing  lead  markets  is  a  key  priority  of  the  Clean  Industrial  Deal.  On  6  April,  the 
Commission  adopted  the  2025-2030  working  plan  for  the  Ecodesign  for  Sustainable  Products 
Regulation  and  Energy  Labelling  Regulation. The  plan  provides  a  list  of  products  that  should  be 
prioritised,  such  as  steel  and  aluminium,  to  introduce  ecodesign  requirements  and  energy  labelling 
over the next five years. This should promote the uptake of sustainable, repairable, circular and energy 
efficient  products  across  Europe.  Once  properly  designed,  harmonised  product  sustainability 
requirements at EU level will reinforce the single market, prevent barriers to trade, improve the level 
playing field and information to consumers as well as reduce the administrative burden.  

In the context of the Strategic Dialogue on the Future of the Automotive Industry that took place in Q1 
2025 and as announced in the Industrial Action Plan for the European automotive sector of 5 March 
2025, the Commission proposed  flexibility to the automotive sector to comply with the 2025 targets 
on fleet sales through a targeted change of the Regulation (EU) 2019/631, which has been adopted by 
co-legislators. This provides manufacturers with an additional flexibility as regards their compliance 
obligations,  by  allowing  for  a  three-year  compliance  period  for  2025,  2026  and  2027,  instead  of  an 
annual period. The targeted amendment introduces such additional flexibility for manufacturers while 
maintaining the level of ambition of the emissions reduction target. This aims to support investment in 
the  clean  transition  while  preserving  overall  climate  ambition.  On  5  March,  the  Commission  also 
updated the List of Waste to keep batteries and their critical raw materials in the economy for longer. 

The Alternative  Fuels  Infrastructure  Facility  (AFIF)  under  the  Connecting  Europe  Facility  made 
€570  million  available  for  deployment  of  charging  infrastructure  for  2025-2026,  with  the  focus  on 
heavy  duty  vehicles.  The  second  cut-off  date  on  11  June  2025  saw  25  project  proposals  with  total 
investment cost of €665 million. Overall, around €287 million of EU funding were requested for EV 
charging  infrastructure  projects;  with  €245  million  for  dedicated  charging  infrastructure  for  Heavy 
Duty Vehicle. 

As regards the external dimension, the Commission has launched negotiations on a first Clean 
Trade and Investment Partnership with South Africa during the EU-South Africa Summit on 13 
March 2025. The partnership is developed in collaboration with key strategic partners to effectively 
manage  strategic  dependencies  and  bolster  the  EU’s  role  in  crucial  global  value  chains.  The 
Commission  and  South  Africa  committed  to  pursue  an  agreement  to  support  the  development  of 
strategic,  cleaner  value  chains  for  raw  materials.  This  includes  focusing  on  local  beneficiation, 
renewable  and  low-carbon  energy  (including  safe  and  sustainable  low  carbon  hydrogen)  and  clean 
technology by improving the conditions for mutually beneficial investments. Additionally, during the 
summit, the Commission announced a Global Gateway Investment Package of EUR 4.7 billion, EUR 

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4.4  billion  of  which  will  be  invested  in projects supporting  a clean  and  just  energy  transition in  the 
country. The Commission aims to show decisive progress on the CTIP with South Africa ahead of the 
G20 Johannesburg Summit, scheduled for 22-23 November 2025.  

The Commission has also tightened the steel safeguard measure to shield the EU steel industry from 
surging imports, delivering on the EU's Steel and Metals Action Plan. While most adjustments entered  
into force on 1 April, the changes concerning a slower pace of liberalisation and the removal of the 
carry-over of unused volumes will enter into force on 1 July 2025. Given the safeguard measure will 
legally  expire  on  30  June  2026,  the  Commission  will  propose  a  long-term  steel  measure  that  will 
provide  a  highly  effective  level  of  protection  to  the  EU’s  steel  sector  post  June  2026  in  September 
2025. This is particularly important in light of increased US tariffs on aluminium in steel, aggravating 
the difficult situation of these industries. 

Enhancing  circularity  is  an  important  pathway  for  the  decarbonisation  and  competitiveness  of 
metal industries. However, the volume of scrap used for recycling in the EU is declining driven by a 
decreased demand from the EU industry and higher prices for scrap paid in third countries. As a first 
step  to  reverse  this  trend,  the  Commission  has  made  relevant  data  from  the  Customs  Surveillance 
database  publicly  accessible,  similar  to  recent  action  taken  in  the  chemicals  sector.  This  initiative 
forms part of a broader monitoring mechanism for the imports and exports for aluminium, copper and 
steel that will improve the availability of market information, thereby promoting circular practices and 
facilitating the adoption of trade measures to ensure the sufficient availability of scrap in the EU, as 
necessary,  starting  with  measures  for  aluminium.  The  Commission  will  also  work  on  increasing 
demand for recycled products. 

Both the Clean Industrial Deal and the Automotive Action Plan announced that the Commission would 
propose  conditions  for  foreign  investments,  more  specifically  in  the  automotive  sector,  including 
components,  with  the  battery  supply  chain  as  an  immediate  priority.  The  Commission  will  propose 
specific  conditions  on  resilience  and  sustainability  criteria  in  the  Industrial  Decarbonisation 
Accelerator Act and possibly other initiatives.  

The Commission  will  propose,  in  close  consultation  with  industry  stakeholders  and  Member  States, 
measures  to  ensure  that  foreign  investments  in  the  EU  better  contribute  to  the  long-term 
competitiveness of EU industry, its technological edge and economic resilience, as well as the creation 
of quality jobs in the EU. For instance, for projects that involve foreign investment, especially when 
involving  public  financing, Member  States  could collectively  consider  conditions  such  as  ownership 
of  the  equipment,  EU  sourced  inputs,  EU-based  staff  recruitment,  the  need  for  joint  ventures  or 
intellectual  property  transfers,  starting  with  some  strategic  sectors,  such  as  for  example,  the 
automotive or renewable manufacturing”.  

Specifically  as  regards  the  automotive  sector,  the  Commission  plans  to  discuss  with  Member  States 
and relevant stakeholders how to maximize the added value of inward investments and help prevent a 
race to the bottom and fragmentation of the internal market. Such conditions will provide the basis for 
engagement with key international partners with significant investments in the EU and especially in 
the renewable energy and automotive supply chain. 

The  Commission  will  shortly propose a  Chemicals  Package, including an Action  Plan for the  EU 
chemicals  industry  and  an  Omnibus  on  chemicals.  The  Action  Plan  will  introduce  concrete 
measures  to enhance  the  global  competitiveness  of the  European  chemicals  sector,  including  SMEs, 
and  strengthen  its  production  base  through  actions  in  key  areas,  such  as  critical  production,  energy 
price and supporting innovation and decarbonisation.   

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As announced in the Clean Industrial Deal, the Commission has set up the IPCEI support hub to 
accelerate  the  design  of  new  IPCEIs.  The  Commission  is  currently  offering  support  to  several 
Member States to speed up the design of the new IPCEIs endorsed by the Joint European Forum on 
IPCEIs in November 2024 and March 2025. The work on the Circular Advanced Material IPCEI and 
on the innovative nuclear technologies IPCEIs will in particular contribute to accelerate the objectives 
of the Clean Industrial Deal. 

The  Commission  has  also  adopted  on  13  June  2025  the  Nuclear  Illustrative  Programme  (PINC). 
This provides an up-to-date overview of nuclear energy investments needs in the EU and best practices 
of financing models for efficient investment plans. Delivering Member States' plans regarding nuclear 
energy  will  require  significant investments, of  around  EUR  241  billion  until  2050,  both  for  lifetime 
extensions of existing reactors and the construction of new large-scale reactors. Additional investments 
are  needed  for  Small  Modular  Reactors  (SMRs),  Advanced  Modular  Reactors  (AMRs)  and 
microreactors and in fusion energy for the longer-term future. 

Significant  steps  have  also  been  taken  to  enhance  skills  and  job  quality  in  the  EU,  as  part  of  the 
Clean  Industrial  Deal.  On  5  March  2025,  a  Communication  on  the  Union  of  Skills  was  adopted, 
introducing key initiatives such as the European Skills High-Level Board, a Skills Observatory, while 
reinforcing  existing  upskilling  and  reskilling  initiatives.  Furthermore,  the  Commission  has  launched 
consultations  with  social  partners  to  prepare  the  Quality  Jobs  Roadmap,  focusing  on  support  for 
restructuring  processes  and  just  transitions,  and  has  proposed  targeted  amendments  to  the  European 
Globalisation Adjustment  Fund  and  the  European  Social  Fund  Plus  (ESF+)  as  part  of  the  mid-term 
review  of  cohesion  policy  to  accelerate  and  boost  support  to  workers  at  risk  of  job  loss  due  to 
restructuring linked to decarbonisation.   

The mid-term review of cohesion policy, proposed by the Commission in April, will offer Member 
States and regions the  possibility, through their programmes, to strengthen Europe's competitiveness 
and close the innovation gap. While the proposal is still under negotiation in the co-decision process, 
the  Commission  looks  forward  to  an  ambitious  final  outcome.  In  this  context,  support  from  the 
European Regional Development Fund would be enabled for large enterprises when they contribute to 
an  Important  Project  of  Common  European  Interest  or  when  they  operate  in  critical  areas,  such  as 
defence, strategic technologies, and decarbonisation. Additionally, it will support the energy transition 
by  promoting  energy  interconnectors  (land  and  subsea  cables  that  connect  the  electricity  systems  of 
neighbouring  countries)  and  setting  up  recharging  infrastructure.  Investments  in  affordable  energy-
efficient housing, sustainable water management and innovation contributing to the STEP objectives 
will  also  strengthen  the  clean  industrial  base  across  regions.  As  a  financial  incentive  to  invest  in 
strategic priorities, the Commission has proposed allowing Member States and regions to benefit from 
30% of prefinancing in 2026 and higher co-financing rates for projects developed under the strategic 
priorities.  

3. Conclusion 

The  successful  implementation  of  the  Clean  Industrial  Deal  relies  on  the  commitment  of  Member 
States and their authorities to effectively put its actions into motion.  

The Commission remains steadfast in its commitment to deliver on the Clean Industrial Deal and on 
making  decarbonisation  a  driver  of  Europe’s  competitiveness  and  prosperity,  including  through 
proposing the intermediate 2040 target on the path to climate neutrality by 2050. It will deliver the rest 

8 

 
 
of Clean Industrial Deal actions through a series of packages, next ones planned for the second half of 
2025. Each package will be tailored to address specific aspects of the Clean Industrial Deal objectives, 
thereby  reinforcing  collective  efforts  to  enhance  Europe's  industrial  competitiveness  and  progress 
towards the EU's decarbonisation goals.  

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