Commission proposes Industrial Accelerator Act to strengthen industry and create jobs in Europe

The European Commission has adopted a legislative proposal to increase demand for low-carbon, European-made technologies and products. The Industrial Accelerator Act (IAA) will boost manufacturing, grow businesses and create jobs in the EU, while supporting industry's adoption of cleaner, future-ready technologies.

In line with the recommendations of the Draghi report, the IAA introduces targeted and proportionate 'Made in EU' and / or low-carbon requirements for public procurement and public support schemes. These will apply to selected strategic sectors (while establishing a framework that can be extended, where appropriate, to other energy-intensive sectors such as chemicals) such as:

• steel
• cement
• aluminium
• cars
• net-zero technologies

This will strengthen European production capacities and boost demand for European-made clean technologies and products. The Act includes a requirement for Member States to set up a single digital permitting process to speed up and simplify manufacturing projects.

While remaining open to foreign direct investment, the IAA establishes conditions for major investments in strategic sectors exceeding €100 million where a single third country controls more than 40% of global manufacturing capacity. Such investments must:

• create high-quality jobs
• drive innovation and growth
• generate real value in the EU through technology and knowledge transfer, as well as compliance with local content requirements

They must also guarantee a 50% minimum level of European employment, ensuring businesses and citizens benefit alongside investors from access to the Single Market. In doing so, the IAA strengthens EU economic security and reinforces supply chain resilience.

Leveraging strengths of the Single Market

The Industrial Accelerator Act leverages the strengths of the Single Market by:

• supporting lead markets for 'Made in EU' and low-carbon products
• ensuring that foreign direct investments bring value to the EU
• simplifying permitting procedures for industrial projects
• boosting sustainable manufacturing

Next steps

The proposed Regulation will be negotiated by the European Parliament and the Council of the European Union before its adoption and entry into force.

Background

This initiative is a proposal for a Regulation. It was announced in the Clean Industrial Deal and in last year's Joint Communication on strengthening EU economic security. It also delivers on the Draghi report by creating EU demand for clean and EU-made products and key technologies through public procurement and support schemes.

More information

• Commission proposal with Annexes
• Questions and answers
• Factsheet

Details