Overview of the Clean Industrial Deal

At the end of February, the Commission released the Clean Industrial Deal, which is designed to revitalise Europe's industrial sector while advancing its climate objectives. This initiative seeks to balance the EU's decarbonisation goals with the need to enhance industrial competitiveness, particularly in response to challenges posed by energy costs and global competition.

Key components of the Clean Industrial Deal include:

• Affordable and Clean Energy Initiatives:
  • The Clean Industrial State Aid Framework (CISAF) that sets out how Member States can design State Aid measures to support the development of clean energy, industrial decarbonisation and clean technology (see separate article)
  • Energy Cost Reduction: Implementing measures to lower energy prices for businesses and consumers, addressing the disparity with regions like the United States and China, where energy is more affordable.
  • Trans-European Energy Networks: Developing and enhancing energy transportation networks across Europe to ensure efficient distribution and access to clean energy sources.
• Industrial Decarbonization Financing:
  • €100 Billion Decarbonisation Bank: Establishing a dedicated bank to finance industrial decarbonisation projects, aiming to attract private sector investments and support industries like steel and cement in achieving net-zero emissions.
• Regulatory and Administrative Reforms:
  • Reduction of Bureaucracy: Implementing a program to decrease administrative burdens, with a focus on reducing reporting requirements for small and medium-sized enterprises (SMEs) to enhance their competitiveness.
  • Simplified Environmental Reporting: Relaxing certain environmental reporting obligations for SMEs to balance sustainability goals with economic viability.
• Stimulating Demand for European Clean Technologies:
  • "Buy European" Quotas: Introducing measures to ensure public procurement policies favour EU-made clean technologies, including setting minimum local content requirements to boost demand for domestically produced sustainable goods.
  • The recognition of ‘social leasing’ as a demand driver. “Social leasing for clean products to ensure that all Europeans benefit from the clean transition, without adverse distributional effects and to help stimulate demand for clean products, the Commission will develop a Guidance to Member States on social leasing for zero-emission vehicles, heat pumps, and other clean products, providing financial assistance to citizens to access these clean products, eligible also in the context of the Social Climate Fund.”  (see separate article)

In the same document, the Commission also announced a Communication and legislative proposal on Greening of Corporate Fleets.