EU Commission unveils plan to strengthen the domestic industry – securing raw materials as a key pillar.
On Wednesday, the EU Commission presented its Clean Industrial Deal, an initiative designed to boost the bloc’s competitiveness while advancing climate protection. In light of “tough, often unfair global competition” and internal EU challenges such as excessive bureaucracy, domestic industries are in urgent need of support, the Commission stated. Climate-friendly technologies, including wind and solar energy, are expected to drive growth.
The legislative package specifically aims to reduce Europe’s high energy costs, partly by accelerating the expansion of renewable energy. Approval processes for state aid in relevant sectors—such as industrial decarbonization—will also be streamlined. To stimulate demand for “Green Tech Made in Europe,” the Commission plans to introduce new sustainability criteria for public and private procurement. Additionally, 40% of key components for climate-friendly technologies are to be manufactured within the EU.
Joint Raw Material Procurement and Circular Economy Law Planned
In addition to new trade agreements and incentives to attract skilled workers, securing critical raw materials for green technologies is a central focus. A joint procurement platform for these materials is set to be established—an initiative already outlined in the EU Critical Raw Materials Act. Furthermore, the Commission plans to introduce a Circular Economy Law by 2026, with the goal of ensuring that 24% of materials are reused by 2030.
However, the proposal lacks concrete details on financing. Suggested measures include strengthening existing instruments such as the EU Innovation Fund and establishing an “Industrial Decarbonization Bank” with a proposed budget of €100 billion. Industry associations, including the German Automotive Industry Association (VDA) and the Federation of German Industries (BDI), have voiced concerns over certain aspects—particularly mandatory production quotas—but support the overall direction of the Clean Industrial Deal.
Alongside the Clean Industrial Deal, the EU Commission also introduced the Omnibus Regulations to significantly reduce corporate reporting obligations—aiming to cut bureaucracy by up to 35% (we reported). Additionally, the controversial Supply Chain Act, which was only passed last year, is set to be postponed and simplified.
Photo: iStock/DutchScenery
