The European Commission has unveiled the Industrial Accelerator Act (IAA), a legislative proposal aimed at strengthening Europe’s industrial base while stimulating demand for low-carbon and EU-manufactured products.
The initiative seeks to boost manufacturing activity, support job creation, and accelerate the deployment of cleaner industrial technologies across the European Union. The proposal will now be reviewed by the European Parliament and the Council of the European Union before it can be formally adopted.
Strengthening European industrial competitiveness
A key element of the proposal is the introduction of “Made in EU” and low-carbon criteria in public procurement and public support schemes, particularly for strategic sectors. These rules would initially apply to industries such as steel, cement, aluminum, automotive manufacturing, and net-zero technologies, with potential expansion to other energy-intensive sectors such as chemicals in the future.
To simplify investment procedures, the Act also requires EU member states to establish a single digital permitting system, designed to streamline approval procedures for industrial projects and reduce administrative delays.
The proposal comes as the EU seeks to reduce dependence on non-EU suppliers and strengthen industrial competitiveness amid rising global competition. Manufacturing currently accounts for approximately 14.3% of EU GDP, with the European Commission targeting an increase to 20% by 2035.
Rules for international procurement and foreign investment
The Act introduces reciprocity rules in international public procurement, ensuring that countries granting EU companies access to their public markets receive similar treatment within the EU framework.
Under the proposal, products originating from countries that have free trade agreements, customs unions, or participation in the WTO Government Procurement Agreement with the EU would be considered to have Union origin.
The legislation also introduces conditions for large foreign direct investments in strategic sectors. Projects involving investments exceeding €100 million in industries where a single third country controls more than 40% of global manufacturing capacity would need to meet specific requirements.
These include technology transfer, innovation contributions, and knowledge sharing, as well as ensuring that at least 50% of jobs created are located in Europe.
Creating markets for low-carbon industrial products
A central objective of the Industrial Accelerator Act is to create lead markets for low-carbon materials produced in Europe.
The proposal introduces procurement preferences for low-carbon and EU-produced materials in sectors such as cement, aluminum, and clean energy technologies, including batteries, solar panels, wind turbines, heat pumps, and nuclear energy equipment.
For the steel sector, the framework proposes dedicated low-carbon procurement preferences designed to create predictable demand and encourage investment in clean steel production.
The Act also plans to establish Industrial Acceleration Areas, which would support industrial clusters, shared infrastructure, simplified permitting processes, and improved access to investment and skilled labor for clean manufacturing projects.
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