Clean Industrial Deal

On 26 February 2025, the European Commission (EC) published the Clean Industrial Deal (CID). This policy initiative is designed to help European industry reduce its environmental impact while enhancing competitiveness. Ongoing high energy prices and increasing international competition are placing significant pressure on the sector. The CID introduces a comprehensive set of measures aimed at decarbonisation and industrial resilience, backed by more than € 100 billion in funding.

Objectives of the Clean Industrial Deal

The Clean Industrial Deal aims to significantly reduce industrial CO₂ emissions and accelerate the transition towards a sustainable, climate-neutral economy. At the same time, it seeks to ensure that European companies remain competitive on the global stage.

Key focus areas of the Clean Industrial Deal

European industry is currently facing high energy costs and strong competitive pressure. The CID therefore aims to lower energy prices, create high-quality jobs and establish favourable conditions for businesses to grow and innovate. The measures primarily focus on:

Energy-intensive industries

Sectors such as steel, chemicals and metals will receive support to reduce CO₂ emissions, transition to clean energy sources and manage high operational costs in a highly competitive market.

Cleantech sector

This sector includes innovations that support sustainability, such as renewable energy solutions and circular economy technologies. Cleantech is central to Europe’s future competitiveness and plays a key role in industrial transformation, circularity and decarbonisation.

Circularity is also a core theme within the CID, with a strong emphasis on extending the lifespan of materials and reducing waste.

What measures does the Clean Industrial Deal include?

Affordable energy

To reduce energy costs for industry, businesses and households, and to support the transition to a low-carbon economy, the European Commission has adopted the Affordable Energy Action Plan. This plan focuses on:

• Accelerating the deployment of clean energy to boost electrification;
• Completing the internal energy market through improved physical interconnections;
• Increasing energy efficiency and reducing dependence on imported fossil fuels.

Stimulating demand for clean products

The Industrial Decarbonisation Accelerator Act aims to increase demand for sustainably produced products manufactured within the EU. This will be achieved by introducing criteria related to sustainability, resilience and “made in Europe”.

Financing the clean transition

Under the Clean Industrial Deal, more than € 100 billion will be mobilised to support clean production in Europe, including through:

• A new state aid framework, enabling faster approval of support for renewable energy deployment, industrial decarbonisation and clean energy manufacturing capacity;
• Strengthening the Innovation Fund via the Industrial Decarbonisation Bank, with a budget of € 100 billion;
• A dedicated call within the Horizon Europe programme to stimulate research and innovation in these areas;
• An amendment to the InvestEU scheme to increase financial guarantees, ultimately unlocking an additional € 50 billion for clean technologies, sustainable mobility and waste reduction.

Get in contact with a specialist

Would you like more information about the Clean Industrial Deal or are you interested in what opportunities this initiative may offer your organisation? Schedule a introduction with one of our specialists to discuss the possibilities.