Background
As part of the Clean Industrial Deal, the European Commission has launched a consultation to support the impact assessment for the forthcoming Industrial Decarbonisation Accelerator Act (IDAA). The Act aims not only to drive industrial decarbonisation but also to strengthen the global competitiveness of European industry. It will introduce clean, resilient, circular, cybersecure criteria to strengthen demand for EU-made clean products.
The initiative will focus on Energy Intensive Industries—including chemicals, steel, pulp and paper, refineries, cement, non-ferrous metals, glass, and ceramics—and, where relevant, consider related downstream sectors within a value chain framework.
The Commission plans to present the IDAA in Q4 2025. The initiative specifically targets permitting bottlenecks in industrial decarbonisation, improves access to clean energy, and supports the development of lead markets for clean and resilient European industrial products.
CLC’s main message is summarized below.
CLC’s comments in short
Barriers to industrial decarbonisation:
- CLC’s main message: One of the primary obstacles to industrial decarbonisation is the high capital and operational costs associated with low-carbon technologies. In addition, the complex and time-consuming permitting processes for such projects pose a major deterrent to investment across Europe. Investor confidence is further undermined by the uncertainty surrounding long-term legislation and mandated demand for low-carbon products. Compounding these challenges are overly detailed and restrictive regulatory frameworks, along with a lack of technology neutrality—for instance, limitations related to the use of nuclear energy.
Speed up permitting for industrial decarbonisation:
- CLC’s main message: The challenges related to permitting processes are widespread across Member States lack of administrative capacity, fragmented regulatory landscape and complexity of the process being the most important reasons behind. Addressing major cross-border challenges and simplification (e.g. infrastructure, supply chains, regulatory alignment) of the related legislation would be needed to accelerate decarbonising of energy intensive industries.
Create and protect European lead markets for low-carbon products:
- CLC’s main message: Public procurement accounts for approximately 14% of the gross domestic product (GDP) across the EU’s 27 member states. It holds significant potential to drive the development of European lead markets for clean industrial products. However, current procurement practices place disproportionate emphasis on price as the primary criterion. To better support European lead markets, non-price factors—such as carbon intensity labeling, EU content, and other environmental or strategic indicators—should be more strongly integrated into evaluation processes of public procurement, including defence acquisition.
More Information: Juha Turkki, Development Director, juha.turkki@clc.fi
