Clean Industrial Deal
Published on 14th May 2025
On February 26th, 2025, the European Commission (EC) announced the Clean Industrial Deal, which aims to accelerate decarbonization and secure the future of European production.
The Clean Industrial Deal plans to promote the circular economy to maximize the use of the EU's limited resources and reduce dependence on raw material suppliers from third countries. The EC's ambition is to make the EU a global leader in the field of circular economy by 2030.
Here are the key outcomes of the Clean Industrial Deal:
€100 billion to support clean production in the EU
The EC plans to invest over €100 billion in industrial transformation. To this end, the Industrial Decarbonization Bank will be established and based on ETS funds. It will support the development of technologies that reduce CO2 emissions, electrification, and renewable resources.
Support for Power Purchase Agreements (PPAs)
The EC and the European Investment Bank (EIB) will launch €500 million in guarantees for power purchase agreements. These funds are intended to support small and medium-sized enterprises and energy-intensive industries in signing long-term power purchase contracts.
Funding under the Clean Industrial Deal
One of the key elements of financing under the Clean Industrial Deal is the Competitiveness Fund, which provides support for sustainable industrial investment in the EU. This fund will focus on projects supporting the development of clean technologies, industrial decarbonization, and innovative solutions in the strategic EU sectors.
Simplification of State Aid rules for energy-intensive sectors
To accelerate investment in clean technologies, the EC will ease and simplify the requirements for public support for industrial enterprises by issuing the Clean Industrial Deal State Aid Framework. Thanks to the solutions contained therein, entrepreneurs will obtain subsidies and tax reliefs for industrial decarbonization more quickly. The EC emphasizes the importance of Member States' aid in this process.
Public procurement
The EC announces a revision of the Public Procurement Framework for 2026. It aims to increase the competitiveness of clean technologies by encouraging the implementation of green public procurement. The revision will include sustainability, resilience, and European preference criteria in EU public procurement.
Strengthening the circular economy and local supply chains
In 2026, the EC plans to adopt the Circular Economy Act, which will accelerate the transformation of the circular economy, facilitate the recycling of raw materials, and reduce the EU's dependence on imports of strategic raw materials.
Special action plans for key industrial sectors
The EC is currently working on implementing the Clean Industrial Deal in key sectors of European industry. In the coming months, a communication for the chemicals industry (Chemicals Industry Package) and the Sustainable Transport Investments Plan are planned to be published.
If you are interested in detailed information about the Clean Industrial Deal, visit our website HERE.
