The European Commission has unveiled its long-anticipated Industrial Accelerator Act (IAA), proposing new “Made-in-EU” and low-carbon criteria for key industrial sectors and net-zero technologies such as batteries, solar, wind, heat pumps, nuclear, and electric vehicles. The initiative aims to strengthen Europe’s manufacturing base while accelerating decarbonization.
First introduced under the Clean Industrial Deal, the IAA is designed to boost demand for EU-made clean technologies and reflects recommendations from the Draghi report. The Commission estimates the Act could cut over 30 million tonnes of CO₂ emissions in energy-intensive industries and generate billions of euros across the automotive, steel, aluminum, and cement value chains.
Targeting strategically important sectors facing global competitive pressure—particularly from heavily subsidized markets such as China—the proposal addresses supply chain risks, weak demand for European low-carbon products, and slow project deployment due to complex permitting processes.
The IAA introduces “Made-in-EU” requirements for public procurement of clean technologies and low-carbon criteria for materials like steel, cement, and aluminum used in construction and automotive applications. Products from countries with EU free trade or customs union agreements would also qualify under the “Made-in-EU” definition.
Additional measures include stricter conditions on large foreign investments (above €100 million) in strategic sectors and streamlined permitting through single digital systems and designated Industrial Acceleration Areas.
The proposal will now move to the European Parliament and Council for negotiation before adoption.
