EU Balances Decarbonization With Competitiveness

The feedback period for the proposed Industrial Accelerator Act (IAA) opened on March 11, 2026, and will remain open until May 28, 2026. The act aims to find a balance between accelerating the competitiveness of European Union (EU) industries and decarbonizing industrial processes to meet EU sustainability goals.

According to the Call for Evidence Impact Assessment (Ares(2025)3079152), energy-intensive industries (EII) account for 19% of EU greenhouse gas (GHG) emissions and employ 7.8 million people while providing economic benefits of €549 billion. As part of the Clean Industrial Deal (CID), the IAA addresses constraints including complex permitting procedures for decarbonization projects, high capital and operational costs for decarbonizing technologies, and a lack of demand for clean industrial products at current prices compared to conventional alternatives.

According to EU research, manufacturing in the EU is declining as a result of low investment levels, slow economic growth, and unfair international trade and competition, with strategic dependencies and supply chain risks posing a threat to the region's economic security. The objectives of the CID, therefore, depend on the ability to create a competitive and decarbonized industrial base in the EU.