The Clean Industrial Deal: a driver for a decarbonized industry

On February 26, 2025, the European Commission unveiled its Clean Industrial Deal. The goal: to make decarbonization a true engine of growth for Europe, driving innovation and competitiveness for European industries. In this article, we cover everything you need to know about this new program, its objectives, and the implications for businesses.

What is the Clean Industrial Deal?

The Clean Industrial Deal is a roadmap for the competitiveness and decarbonization of the European Union, presented on February 26, 2025, by the European Commission. This program marks a significant shift in EU environmental policy. It aims to rebalance the ecological transition around industry and competitiveness.

The origins of the Clean Industrial Deal: The European Green Deal

To understand the origins of the Clean Industrial Deal, we must look back to the launch of the European Green Deal (European Green Deal) in 2019, which aims to make the European Union a decarbonized industry by 2050, with a 55% reduction in net greenhouse gas emissions by 2030 and 90% by 2040. 

During the energy crisis of 2022-2023, it became clear that implementing this environmental program risked severely impacting the competitiveness of European industries, particularly in the context of rising energy prices. The EU therefore decided to adopt new measures to make decarbonization achievable and profitable for European industries, by providing them with the industrial and economic resources to implement it without compromising their competitiveness.  

In short, while the Green Deal sets the climate objectives for the European Union, the Clean Industrial Deal aims to achieve EU carbon neutrality without deindustrialization, to green the industry while strengthening its technological and economic sovereignty, and therefore to make the EU's ecological transition economically sustainable for European industries. 

What are the objectives and levers of the Clean Industrial Deal?

The Clean Industrial Deal defines a program of concrete actions to make decarbonization a real growth engine for European industry. To this end, it defines six pillars of action.

1. Reduce energy costs

One of the main objectives of the Clean Industrial Deal is to lower energy costs for manufacturers by facilitating their access to low-carbon energy production. Adopted on February 26, 2025, the action plan for affordable energy aims to provide the means for this transition by activating three main levers: 

• accelerating the deployment of clean energy (notably renewable energies) and electrification; 
• finalizing the internal energy market through the creation of physical interconnections;
• using energy more efficiently : equipment modernization, energy optimization of production lines, etc.

These various measures are intended to reduce reliance on imported fossil fuels (oil, natural gas, coal) and thereby lower energy bills for industries, businesses, and households in the short term. 

2. Stimulate supply and demand for sustainable“made in Europe” 

The Clean Industrial Deal also aims to increase the supply and demand for sustainable products in the EU to accelerate the green transition, strengthen industrial competitiveness, and create a more resilient internal market. The goal is to make sustainability a driver of growth and innovation in Europe.

The primary lever for this objective is expected to be a legislative act aimed at accelerating industrial decarbonization, which is expected to be adopted in the fourth quarter of 2025. Key measures include: 

• streamlining the permitting process for industrial energy access and decarbonization (particularly regarding the modernization of steel production sites);
• implementing a low-carbon product labeling for steel and subsequently for cement, with the goal of enabling companies to benefit from the “green premium” and providing consumers with information on the carbon intensity of products;
• introducing sustainability, resilience, and European preference criteria into public and private tenders to promote “clean” European sourcing for energy-intensive industrial sectors (steel, cement, glass, chemicals, etc.). In this regard, the European Commission is planning, among other things, a revision of the public procurement directive.

3. Financing the transition to clean energy produced in the EU 

To ensure the transition to “clean” energy produced in the EU, the Clean Industrial Deal aims to develop several means of financial support, notably through: 

• a new state aid framework to accelerate the authorization of aid for the deployment of renewable energies, the decarbonization of industry and the establishment of sufficient production capacities in the clean technology sector;
• a strengthening of research and innovation in the field of decarbonization through a call under Horizon Europe;
• an increase in the amount of financial guarantees that can be provided under the InvestEU program. The ultimate goal is to enable the mobilization of up to 50 billion euros for the deployment of clean technologies, clean mobility solutions, and waste reduction. 

4. Strengthening circularity and access to materials 

The Clean Industrial Deal also focuses on strengthening circularity, which is essential for optimizing the EU's limited resources, reducing dependencies, and increasing resilience. 

To achieve this, the EU plans to activate several levers, including: 

• the rapid implementation of the Critical Raw Materials Act (Critical Raw Materials Act) with the establishment of an initial list of strategic projects by March 2025;
• the implementation of a mechanism allowing European companies to join forces to aggregate their demand for critical raw materials (in the form of a platform);
• the creation of an EU center dedicated to critical raw materials to enable joint purchasing of materials on behalf of interested companies;
• the adoption, in 2026, of a Circular Economy Act aiming to establish a single market for waste and reusable materials to make the best possible use of EU resources and reduce reliance on rare materials from unreliable suppliers. 

5. Strengthening global trade partnerships 

A major objective of the Clean Industrial Deal is also to launch international trade partnerships with reliable partners in order to diversify and secure EU supplies, particularly regarding access to critical raw materials and clean technologies. The goal is to create strategic alliances that support the global energy transition and strengthen the EU's industrial competitiveness.

6. Ensuring access to a skilled workforce

Finally, the Pact also aims to ensure that European Union member states have the necessary skills to support this transition to a low-carbon economy.

One of the key levers is the establishment of a Skills Union aimed at strengthening human capital. This must focus on developing skills in clean technologies, digitalization, and entrepreneurship. The EU notably plans to create European skills academies, supported by programs such as Erasmus+, with funding of up to 90 million euros.  

Clean Industrial Deal: which strategic sectors are involved?

The Clean Industrial Deal primarily targets two closely linked sectors: 

• energy-intensive industries, in other words, sectors whose production and manufacturing processes require high levels of energy and emit significant amounts of CO₂ (steel, metals, chemicals, cement, glass, etc.). The European Commission recognizes that they urgently need support to decarbonize and address high energy costs and unfair global competition that affect their competitiveness.
• the clean tech sector, which includes all industries whose activities are directly relevant to the energy transition (renewable energy, hydrogen, electrification, clean mobility, etc.). A sector that the EU describes as “at the heart of future competitiveness and necessary for industrial transformation, circularity, and decarbonization”. 

Beyond these two broad categories, the Clean Industrial Deal specifically targets certain sectors for which it plans to implement dedicated sectoral plans : 

• the automotive sector : an automotive industry action plan was presented in March 2025, focusing primarily on innovation in future technologies.
• steel and metals : an action plan for steel and metals was presented in March 2025, outlining measures for ferrous and non-ferrous metals, which are essential for the green and digital transition.
• the chemical industry : the stakes here are particularly high due to its carbon emissions, significant energy consumption, and supply chains (raw materials). The EU plans to adopt a chemical industry package by the end of 2025, aimed at highlighting the sector's strategic role and boosting its competitiveness, modernization, and innovation.
• sustainable transport, which is set to be the subject of a specific investment plan aimed at prioritizing low-carbon fuels for air and maritime transport, developing charging infrastructure, and supporting the energy transition of the rail sector.
• the bioeconomy, a sector where the challenge lies in the need to reduce its dependence on imported raw materials and move toward greater circularity. The Clean Industrial Deal therefore includes the adoption of a specific strategy for the bioeconomy.
• finally, a European Ocean Pact is to be adopted to stimulate innovation in "blue" clean technologies, offshore renewable energy, and circular economy practices.

Clean Industrial Deal: what are the impacts for businesses?

As a reminder, industry accounts for approximately 15% of greenhouse gas emissions in France according to ADEME. This finding led the Government and ADEME to define sectoral transition plans (PTS) for the 9 most energy-intensive sectors: cement, aluminum, ammonia, steel, sugar, glass, paper-cardboard, ethylene, and chlorine. 

These PTS provide a concrete framework to support industries in building their decarbonization trajectory by combining economic performance with energy sovereignty. They most certainly influenced the design of the Clean Industrial Deal and thus appear as major strategic tools for its implementation. 

‍

More broadly, the Clean Industrial Deal presents numerous opportunities for companies in the relevant industrial sectors : 

• the opportunity to become true "showcases for decarbonization" thanks to both public and private support;
• long-term cost reductions through decarbonization, a return to greater autonomy, and reduced dependency (on energy and raw material imports);
• the development of new industrial sectors particularly in clean technologies (batteries, low-carbon hydrogen, renewable energy) and the circular economy. The financial support provided by the Clean Industrial Deal is a genuine opportunity to strengthen these still-emerging sectors;
• the provision of funding as well as the removal of certain regulatory barriers to decarbonization (state aid, sustainability criteria in public procurement, etc.).

Among the main European funding mechanisms associated with the Clean Industrial Deal are the Clean Industrial Deal State Aid Framework (CISAF), the Innovation Fund, the Industrial Decarbonisation Bank, and the InvestEU program. In France, notable examples include ADEME’s industrial decarbonization grants, the France 2030 plan, and Bpifrance’s Climate Plan. 

Conclusion

By establishing decarbonization at the European level as a true driver of growth and a factor of competitiveness for European industries, the Clean Industrial Deal represents a major step forward for the EU’s ecological and energy transition. It offers a real economic and ecological opportunity for member state industries through the implementation of new funding mechanisms as well as a new, more incentive-based regulatory framework.

However, its implementation involves numerous challenges that must be overcome to ensure its effectiveness. In particular, the cost of the investments required for decarbonization will necessitate both significant subsidies and strong state guarantees to convince manufacturers to take the leap without risking their competitiveness. Similarly, the supply of critical raw materials remains a real issue, particularly in the clean technology sector, which currently remains dependent on the import of many components, metals, and rare earths.

The key success factors for this new program will lie in translating the Clean Industrial Deal commitments into coherent national policies (funding, support, clear regulatory frameworks) as well as in the involvement of the various stakeholders concerned. 

Learn more

• Clean Industrial Deal (Commission Communication of February 26, 2025)
• FAQ on the Clean Industrial Deal
• ADEME sectoral transition plans

‍