Can the Industrial Accelerator Act strengthen Europe’s clean-tech industry?

11 March 2026

The European Commission has unveiled a legislative proposal that could reshape the market for clean technologies in Europe. Announced on 4 March 2026, the proposed Industrial Accelerator Act (IAA) aims to increase demand for low-carbon industrial products manufactured within the European Union while accelerating the adoption of cleaner manufacturing technologies.

The regulation introduces targeted “Made in EU” and low-carbon requirements for public procurement and public support schemes across several strategic sectors. These include steel, cement, aluminium, automotive manufacturing and net-zero technologies such as batteries, solar panels, wind turbines and heat pumps.

The proposal forms part of the EU’s broader Clean Industrial Deal, which seeks to strengthen Europe’s industrial base while advancing the continent’s climate transition. If adopted by the European Parliament and the Council of the European Union, the legislation could create new opportunities for European companies developing technologies for the low-carbon economy.

At its core, however, the Industrial Accelerator Act reflects a deeper shift in European policy thinking: the growing belief that economic competitiveness, climate policy and technological sovereignty are increasingly intertwined.

A response to Europe’s competitiveness challenge

Manufacturing remains a vital pillar of the European economy. According to the European Commission, the sector accounted for 14.3% of EU GDP in 2024. Policymakers now want to increase that share to 20% by 2035.

This ambition reflects mounting concern in Brussels that Europe is losing ground in strategic industrial sectors linked to the energy transition. Supply chains for technologies such as batteries, solar modules and key raw materials have become increasingly concentrated outside the EU.

In response, the Industrial Accelerator Act proposes to use public procurement and support schemes to stimulate demand for low-carbon products produced within Europe. By creating “lead markets” for these products, policymakers hope to provide clearer investment signals for companies considering new manufacturing capacity.

The approach marks a notable evolution in EU industrial policy. For decades, Europe relied primarily on open markets and global supply chains. Today, however, geopolitical tensions and global subsidy races are prompting governments to rethink that model.

Creating demand for low-carbon industrial products

One of the most significant elements of the proposal is the introduction of European preference criteria in certain public procurement processes.

When governments or publicly supported programmes purchase strategic products — from infrastructure materials to clean-energy equipment — preference could be given to European-made products with lower carbon footprints.

For industries such as steel, the proposal introduces specific low-carbon criteria intended to stimulate demand for cleaner production technologies.

This could be particularly important for sectors undergoing major industrial transformation. Steel producers across Europe are investing heavily in new technologies such as hydrogen-based steelmaking and electrified furnaces. These technologies promise significant emissions reductions but require large capital investments.

By ensuring that public projects favour lower-carbon industrial materials, the Commission hopes to create stronger market signals for such investments.

The policy also covers several technologies critical to the energy transition, including wind turbines, batteries, solar components and heat pumps.

Industry reactions: cautious support

Initial reactions from industry suggest cautious support for the Commission’s direction, though many stakeholders emphasise that the details of implementation will be crucial.

The European wind industry has broadly welcomed the recognition of wind energy as a strategic technology.

According to the industry association WindEurope, the Act sends an important signal that “industrial leadership in wind is in Europe’s strategic interest.”

Danish wind turbine manufacturer Vestas is among the companies that could benefit from stronger domestic demand for European-manufactured renewable energy equipment. The company operates extensive manufacturing capacity across Europe and is a key supplier of turbines to energy projects across the continent.

Energy technology provider Siemens Energy could also benefit from policies that accelerate investment in low-carbon infrastructure. The company supplies equipment for power generation, electrification and industrial decarbonisation — sectors that are likely to receive increased support under the Clean Industrial Deal.

Battery manufacturing is another area where policymakers hope to strengthen European capacity. Swedish battery developer Northvolt has invested heavily in building a European battery supply chain to support the electric vehicle industry.

Policies that prioritise European-produced batteries and related technologies in public programmes could reinforce the business case for such investments.

Concerns about implementation

Despite broad support for strengthening Europe’s industrial base, some industry groups warn that the legislation must be implemented carefully.

Solar industry organisations, for example, have welcomed the focus on European manufacturing but warned that procurement rules should remain practical and avoid creating excessive administrative burdens.

Other industry bodies have raised concerns that certain sectors may not receive sufficient support under the current proposal.

Hydrogen industry association Hydrogen Europe described the proposal as “a first important step”, while calling for stronger measures to create markets for hydrogen technologies such as electrolysers and fuel-cell systems.

Some renewable technology sectors have also expressed concern about the scope of the legislation. Solar thermal industry representatives, for example, argue that their technology should receive stronger recognition in procurement frameworks supporting European manufacturing.

These reactions highlight the challenge policymakers face in designing industrial policies that support multiple sectors while remaining administratively workable.

New conditions for foreign investment

The Industrial Accelerator Act also introduces new conditions for large foreign investments in strategic sectors.

While the EU remains open to international investment, the proposed regulation sets requirements for projects exceeding €100 million in sectors such as batteries, electric vehicles and photovoltaics.

Such investments must demonstrate clear benefits for the European economy, including:

technology and knowledge transfer
high-quality job creation
contributions to European supply chains

Projects would also need to ensure that at least 50% of employment associated with the investment takes place within the EU.

These provisions reflect growing concern about supply chain dependencies and economic security.

The policy has already attracted international attention. China’s commerce ministry has warned that the legislation could disrupt global supply chains and amount to protectionism if implemented aggressively.

Faster permitting for industrial projects

Another key element of the proposal focuses on reducing regulatory complexity.

Industrial investment projects in Europe often face lengthy permitting procedures that can delay new manufacturing facilities.

To address this, the Act proposes the creation of a single digital permitting system in each Member State, allowing companies to apply for industrial permits through a centralised “one-stop shop”.

The proposal also introduces clearer timelines for permit approvals and mechanisms intended to accelerate the authorisation of decarbonisation projects.

For companies planning new manufacturing facilities or retrofitting existing plants, these changes could significantly reduce administrative delays.

The wider debate: technological sovereignty

Beyond its specific policy mechanisms, the Industrial Accelerator Act reflects a broader debate about Europe’s technological sovereignty.

European policymakers increasingly argue that maintaining domestic manufacturing capacity in strategic sectors is essential for economic resilience, energy security and geopolitical stability.

The EU’s reliance on imported technologies — from solar panels to batteries — has exposed vulnerabilities in global supply chains.

Analysts therefore see the Industrial Accelerator Act as part of a wider shift towards more proactive industrial policy.

As one industrial policy analyst noted in response to the proposal, the legislation sends a signal that Europe is prepared to use industrial policy tools to strengthen its strategic sectors while accelerating decarbonisation.

What happens next

The Industrial Accelerator Act is currently a legislative proposal. It must now be negotiated by the European Parliament and the Council of the European Union before it can enter into force.

Given the economic stakes involved, negotiations are expected to be closely watched by industry groups, national governments and international trading partners.

For European businesses developing technologies that enable a cleaner industrial future, the outcome could shape market opportunities for years to come.