The European Commission is expected to present, on 25 February, a proposal for a regulation aimed at accelerating industrial deployment (the “Industrial Accelerator Act”), a legislative initiative intended to establish a framework of measures designed to enhance industrial capacity and promote decarbonisation in strategic sectors. The draft regulation emerges in a context shaped by three structural factors: global competitive pressure (in particular from the United States and China), the need to accelerate industrial decarbonisation, and the ambition to consolidate strategic value chains and reduce structural dependencies on third countries.

The text of the proposal, which has meanwhile become known — and may still be subject to amendments prior to its publication, scheduled for 25 February — identifies the following principal objectives in terms of industrial policy:

• The acceleration of strategic projects, with particular focus on energy-intensive sectors and decarbonisation technologies, such as hydrogen, carbon capture and storage, and the electrification of industrial processes.

• The simplification and harmonisation of administrative procedures, notably with regard to licensing and permitting, reducing timeframes and regulatory uncertainty.

• The establishment of a more predictable framework for public support and coordination between European and national instruments, aligned with existing regimes such as the Net-Zero Industry Act, the Critical Raw Materials Act and temporary or sector-specific State aid frameworks.

The proposal also highlights the need to reduce dependence on the Chinese market in net-zero technologies, particularly in battery manufacturing capacity and photovoltaic panel components. It further identifies the risks that such dependence poses to downstream industries, including the European automotive sector — whose average profitability declined from 7.4% in 2016 to 5% in 2023.

One of the most sensitive aspects of the proposal concerns the definition of eligibility criteria and European preference (the “Made in Europe” label). Part of the political debate has focused on the potential introduction of mechanisms that would favour or require the procurement of materials or equipment produced within the EU in renewable energy auctions and public tenders. Critics argue that such measures may lead to higher costs for industries such as automotive and aerospace, which import raw materials and components from third countries.

In response to concerns raised by some of the EU’s main trading partners, eligibility conditions for the European preference label will also include strategic partners (“trusted partners”), namely third countries that have concluded free trade agreements with the European Union.

Manufacturing represents the largest sector of the European economy in terms of contribution to employment and value added. Nevertheless, over the past two decades, the proportion of manufacturing value added generated by the EU has decreased from 20.8% in 2000 to 14.3% in 2020.

This initiative follows the Commission Communication on the Clean Industrial Deal of February 2025, which sets out a joint roadmap to boost competitiveness and decarbonisation in Europe.

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