Clean Industrial Deal: a step forward but lacking a clear vision for industrial transformation
Posted on February, 26 2025
Today, the European Commission unveiled its highly anticipated Clean Industrial Deal (CID). The package includes a number of positive measures to scale up clean technology sectors and products in Europe. However, it falls short of providing a clear, green and fair vision for industrial transformation in Europe. To be truly effective, the deal must ensure regulatory certainty, provide targeted investments in green solutions, lead to firm commitments from industries to decarbonise, and have a strong foundation in social justice.
The European Commission’s intention to integrate the CID within the European Green Deal and acknowledge decarbonisation as the major lever to achieve our 2050 climate targets is a strong signal. WWF welcomes this, as the CID must not be considered in isolation, but within existing and upcoming climate policies. This means that the 2040 climate target should be guiding the next EU industrial strategy - not the other way around.
Resisting short-term relief by providing a long term strategy with environmental and social safeguards
The announcement includes promising initiatives, for example establishing lead markets for clean products such as low-carbon steel by integrating non-price criteria into EU funding. WWF also welcomes the strong ambition to position the EU as a global leader in the circular economy by 2030, as well as its upcoming plan to support affordable energy and electrification, which offers opportunities for the expansion of renewable energy.
However, the CID still lacks a clear long-term vision for tackling the main decarbonisation challenges faced by energy intensive industries, beyond granting them public financial support without any guarantees to decarbonise and maintain or create jobs in the EU. In the view of WWF, the European Commission seems to have lost sight of why we aim to invest in EU industry, which is to drive innovation in order to decarbonise, and put workers at the heart of our economy.
“Europe’s industry needs a compass to steer by for the long term, not a sticking plaster. The true strength and competitiveness of EU industry lies in rapid decarbonisation, targeted investments and the scale-up of clean technologies in a fair manner, not from spreading resources thinly across all technologies or opting for temporary fixes. Today’s proposal is a step forward, but it falls short of setting a bold vision for Europe’s industrial transformation,” said Camille Maury, Senior Policy Officer, Decarbonisation of Industry at WWF EU.
The transformation of EU heavy industry will not happen through business as usual, and the polluter-pays-principle must be fully enforced. WWF’s latest report shows that in 2023, €40 billion were lost in free permits to pollute, instead of being invested in the much needed decarbonisation of heavy industries such as steel, cement and chemicals.
“With this one-sided deal the Commission has given in to the requests for short-term relief from heavy industry, such as easier access to EU funds, without requiring strong commitments from them, leaving decarbonisation and social commitments aside. Rather than steering industry towards a sustainable future, it hands out life jackets without any plan for reaching the shore. Instead of setting a course for transformation, it settles for treading water,” added Maury.
This means that the new announcement in the CID to review the Innovation Fund and InvestEU programme, as well as its proposal for an Industrial Decarbonisation Bank of €100 billion for heavy industries, must come with clear commitments from these sectors to decarbonise and maintain or create quality jobs. Furthermore, support to heavy industries under the Multiannual Financial Framework should be mobilised through new resources rather than cannibalising cohesion and regional development funds that have a genuinely transformative impact for businesses across the EU.
The Industrial Decarbonisation Accelerator Act (IDAA) to be announced later this year will be the first real test of the Commission in delivering on its Clean Industrial Deal. Set to propose measures to address permitting issues for certain industries and easier access to EU funds, it will be crucial that it provide a balanced approach by addressing permitting issues in a more integrated way and adding strict environmental and social safeguards for access to funds.
Resisting short-term relief by providing a long term strategy with environmental and social safeguards
The announcement includes promising initiatives, for example establishing lead markets for clean products such as low-carbon steel by integrating non-price criteria into EU funding. WWF also welcomes the strong ambition to position the EU as a global leader in the circular economy by 2030, as well as its upcoming plan to support affordable energy and electrification, which offers opportunities for the expansion of renewable energy.
However, the CID still lacks a clear long-term vision for tackling the main decarbonisation challenges faced by energy intensive industries, beyond granting them public financial support without any guarantees to decarbonise and maintain or create jobs in the EU. In the view of WWF, the European Commission seems to have lost sight of why we aim to invest in EU industry, which is to drive innovation in order to decarbonise, and put workers at the heart of our economy.
“Europe’s industry needs a compass to steer by for the long term, not a sticking plaster. The true strength and competitiveness of EU industry lies in rapid decarbonisation, targeted investments and the scale-up of clean technologies in a fair manner, not from spreading resources thinly across all technologies or opting for temporary fixes. Today’s proposal is a step forward, but it falls short of setting a bold vision for Europe’s industrial transformation,” said Camille Maury, Senior Policy Officer, Decarbonisation of Industry at WWF EU.
The transformation of EU heavy industry will not happen through business as usual, and the polluter-pays-principle must be fully enforced. WWF’s latest report shows that in 2023, €40 billion were lost in free permits to pollute, instead of being invested in the much needed decarbonisation of heavy industries such as steel, cement and chemicals.
“With this one-sided deal the Commission has given in to the requests for short-term relief from heavy industry, such as easier access to EU funds, without requiring strong commitments from them, leaving decarbonisation and social commitments aside. Rather than steering industry towards a sustainable future, it hands out life jackets without any plan for reaching the shore. Instead of setting a course for transformation, it settles for treading water,” added Maury.
This means that the new announcement in the CID to review the Innovation Fund and InvestEU programme, as well as its proposal for an Industrial Decarbonisation Bank of €100 billion for heavy industries, must come with clear commitments from these sectors to decarbonise and maintain or create quality jobs. Furthermore, support to heavy industries under the Multiannual Financial Framework should be mobilised through new resources rather than cannibalising cohesion and regional development funds that have a genuinely transformative impact for businesses across the EU.
The Industrial Decarbonisation Accelerator Act (IDAA) to be announced later this year will be the first real test of the Commission in delivering on its Clean Industrial Deal. Set to propose measures to address permitting issues for certain industries and easier access to EU funds, it will be crucial that it provide a balanced approach by addressing permitting issues in a more integrated way and adding strict environmental and social safeguards for access to funds.
