In early March, the European Commission adopted a legislative proposal aimed at increasing demand for low-carbon technologies and products manufactured in Europe and strengthening the single market. The new Industrial Acceleration Act (IAA) seeks to boost manufacturing, business growth and job creation, while accelerating the transition to cleaner, future-ready technologies. Its objective is to increase the share of manufacturing in the EU’s GDP from 14.3% in 2024 to 20% by 2035, thereby strengthening Europe’s industrial base in a context of growing global competition and dependence on external suppliers in strategic sectors.

The proposed regulation will need to be negotiated by the European Parliament and the Council of the EU before its adoption and entry into force.

Four pillars to strengthen European industry

The proposal is built around four main areas of action:

1. Boosting demand for “Made in EU” and low-carbon products
The Act introduces preferences in public procurement and support schemes for low-emission European industrial products, such as cement, aluminium and clean technologies including batteries, solar and wind energy, heat pumps and nuclear. For steel, specific measures aim to stimulate demand for low-carbon products, providing greater certainty for investors and fostering innovation.

2. Value-driven foreign investment
While the EU remains a leading destination for foreign direct investment, the proposal introduces conditions for investments above €100 million in emerging sectors such as batteries, electric vehicles, photovoltaics and critical raw materials. The goal is to ensure these investments strengthen European supply chains, promote technology transfer and create quality jobs.

3. Simplifying permitting procedures
As part of the Commission’s simplification agenda, the Act aims to streamline and digitalise permitting processes for industrial projects. Measures include the creation of a digital one-stop shop, clear timelines and the introduction of tacit approval in certain stages of energy-intensive decarbonisation projects.

4. Boosting sustainable manufacturing
The proposal introduces Industrial Acceleration Areas designed to foster industrial symbiosis and the development of clean manufacturing clusters. These areas will facilitate investments in energy infrastructure, enable faster permitting processes and provide support in areas such as investment attraction and skills development.

How can inèdit support you?

The new regulatory framework will reinforce the need for companies to advance in decarbonisation, environmental impact assessment and adaptation to new market and regulatory requirements.

At inèdit, we support organisations in this transition through services such as carbon footprint calculation, Life Cycle Assessment (LCA), product and packaging ecodesign, and the development of sustainability strategies and decarbonisation roadmaps.

Main picture: Stéphane Séjourné photographed by Claudio Centonze © European Union