The European Commission has adopted a major legislative proposal – the Industrial Accelerator Act (IAA) – designed to scale up European-made clean technologies, streamline permitting, and secure the EU’s industrial future.
In a strategic shift following the recommendations of the Draghi Report, the IAA introduces targeted “Made in EU” and low-carbon requirements for public procurement and support schemes. The Act aims to boost manufacturing’s share of EU GDP from 14.3% to 20% by 2035, focusing on strategic sectors including steel, cement, aluminum, automotive, and net-zero technologies.
Key Pillars of the Industrial Accelerator Act:
- Boosting Demand for EU Products: The IAA establishes preferences for European-made and low-carbon products in public auctions and procurement. This provides investors with long-term predictability and strengthens the market for clean European steel, batteries, wind, and solar technologies.
- Strategic Foreign Investment: While remaining open to global markets, the EU will set new conditions for major investments (over €100m) in sectors where a single third country controls more than 40% of global capacity. These projects must ensure at least 50% European employment and foster local technology transfer.
- Permitting Revolution: To eliminate administrative bottlenecks, the Act mandates a single digital “one-stop-shop” for permits. It introduces clear time limits and the principle of “tacit approval” at intermediate stages to accelerate energy-intensive decarbonization projects.
- Industrial Acceleration Areas: The creation of specialized “clusters” will encourage industrial symbiosis, facilitate infrastructure investment, and provide area-wide permits to speed up project execution.
Economic Security and Reciprocity
The IAA emphasizes reciprocity, offering equal market access to partners who open their procurement markets to EU companies. It serves as a defensive shield against unfair global competition while securing supply chains for critical raw materials and future-ready tech.
Next Steps: The proposal now moves to the European Parliament and the Council of the European Union for negotiation and final adoption.
>> The EC press release can be read at ec.europa.eu/commission/presscorner
>> The Industrial Acceleration Act can be found at single-market-economy.ec.europa.eu/publications
