On 26 February, Ursula von der Leyen presented the Clean Industrial Deal (CID), a central communication of the new mandate, establishing a plan to support both competitiveness and the decarbonisation of European industries. On the same day, the European Commission also released two linked initiatives, an Action Plan on Affordable Energy and an Omnibus Simplification Package, both also aiming at fostering sustainable industrial competitiveness. 

The Clean Industrial Deal, notably building on the 2024 Antwerp Declaration for a European Industrial Deal, is a general framework focusing on two main fields: clean technologies – needed for the EU to lead in accomplishing the clean energy transition – and energy-intensive industries, which need to become more energy-efficient and decarbonised. The Deal will be completed by sectorial plans for the automotive industry, steel and metals, as well as for chemicals and clean tech sectors.  

According to the CID, several business drivers must be unleashed to ensure successful European industrial growth: lower energy costs, strong demand for clean products, investments in the clean energy transition, circularity and access to critical materials, a skilled workforce, and international cooperation. Amongst key measures, the plan proposes to introduce an Industrial Decarbonisation Accelerator Act to speed up permitting for industrial decarbonisation, and to revise the EU’s Public Procurement Framework in 2026, introducing a “European preference criteria” for strategic sectors. As outlined in previous communications, the Commission also intends to create a demand aggregation platform for the purchase of critical raw materials, and increase circularity in this area. Clean Trade and Investment Partnerships with reliable global allies will also be launched, and a Union of skills will be established.  

When it comes to financing, the Clean Industrial Deal proposes ambitious funding for high-quality projects endorsed by the Strategic Technology for Europe Platform (STEP) through the EU quality label "STEP Seal". This funding will come from the Innovation Fund, supported by revenue from the Emission Trading System (ETS), with the aim of enhancing synergies between different instruments. In addition, the Commission is aiming to mobilise  over €100 billion through an Industrial Decarbonisation Bank, also drawing from the Innovation Fund, and governed within the future Competitiveness Fund. In parallel, the European Investment Bank will launch a series of instruments supporting the CID. Horizon Europe, the EU’s framework for research and innovation (R&I) is also identified as a key tool, with the Commission announcing the launch of a €600 million call under the 2026-2027 work programme to support fit-for-deployment projects. Generally, clean tech, the grid, battery manufacturing, hydrogen and industrial decarbonisation are cited as targeted sectors.  

These initiatives however seem to support technologies which have already reached a high readiness level. Only a new “TechEU investment programme” hints at supporting disruptive innovation, with a focus on AI, clean tech, critical raw materials, energy storage, quantum computing, semiconductors, life sciences, and neurotechnology. Thus, interestingly, while R&I is identified as an important enabler of the next generation of cleantech, and while streamlining instruments appears as a central objective, the Strategic Energy and Technology (SET) Plan, the EU’s central structure in coordinating stakeholders’ efforts in developing low-carbon technologies, is absent from the CID.  

However, it is remarkably mentioned as a cornerstone of achieving the Energy Union, within the Affordable Energy Action Plan, which recalls the importance of increasing investments in R&I in order to reach the expenditure target of 3% of GDP. The SET Plan should indeed help addressing fragmentation in research on clean energy and electrification, thanks to its efforts with member states through the SET Plan Steering Group, established last year as part of the Net-Zero Industry Act (NZIA). Additionally, AI-driven research as part of a Strategic Roadmap for Digitalisation and Artificial Intelligence (AI) for the Energy Sector is also underlined in the Affordable Energy Action Plan.  

Divided in eight actions, the Plan overall aims to lower energy prices for industries and households alike, mostly through market-based regulation and instruments, such as completing the revision of the Energy Taxation Directive, boosting energy communities, promoting demand aggregation for LNG, or investing in the grid to improve flexibility and cross-border connections. Lastly, the Plan also mentions the importance of promoting energy security and efficiency. The Commission estimates that its implementation should bring savings of €45 billion in 2025, rising to €130 billion annually by 2030 and €260 billion by 2040. 

In general, the two new Commission initiatives, with their strong focus on prices, competitiveness and industry make little mention of climate concerns. However, the Clean Industrial Deal interestingly sends a strong signal by reiterating the intention to propose an ambitious EU’s 2040 climate target, aiming to reduce greenhouse gas emissions by 90% compared to 1990 levels. The Commission is yet to propose the target officially, which will then be negotiated by the Parliament and Council before being enshrined in the EU Climate Law. While encouraging, climate nonetheless seems to be taking the backseat in the new mandate, with the Omnibus Simplification Package presented on the same day proposing to delay the implementation and lower the ambitions of several key initiatives of the Green Deal such as the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD).