Initially scheduled for 25 February after several months of delays, the European Commission’s Industrial Accelerator Act (IAA) is now expected to be adopted on 4 March, amid a heated political debate over its “Made in Europe” provisions. Internal divisions within the EU, and the potential challenge the IAA poses to the bloc’s usual free-trade orientation, are putting strain on Europe’s wider trade strategy and may affect ongoing negotiations with the United States over tariffs and procurement rules, as well as relations with other trade partners such as Switzerland and Turkey.

Despite being central to the Clean Industrial Deal — the EU’s flagship decarbonisation and competitiveness strategy — the IAA has drawn criticism from within the Commission itself. Nine Directorate-Generals (DGs) expressed concerns after a draft of the text was circulated in late February, highlighting risks of market closure, higher prices, and administrative burdens. By 26 February, only three DGs maintained formal reservations, but many observers doubt that these disagreements can be resolved quickly ahead of the European Council discussion on 19 March.

Among the IAA’s main provisions — and sticking points — are rules giving European-made products a preferential position in public procurement, through local content requirements for energy-intensive industries, net-zero technologies, and the automotive sector. The final list of sectors and the non-EU countries recognised as “trusted partners” — whose products would be treated as equivalent to EU origin — remain under debate. So far, the regulation is set to include European Economic Area countries (Norway, Iceland, Liechtenstein). DG TRADE, responsible for EU trade policy, favours a broader approach encompassing all Free Trade Agreement partners, whereas DG GROW, overseen by Commissioner Stéphane Séjourné, who is responsible for the IAA dossier, advocates a more restrictive list. The IAA’s “Made in Europe” provisions have also drawn criticism internationally. Switzerland, Turkey, and several G7 countries have voiced concern, while the United States described the local content requirement as a “serious mistake.”

Such political and geopolitical developments are of paramount importance for EU energy competitiveness, resilience, and security, and will directly shape the contribution that low-carbon energy research and innovation can make in tackling these challenges. In this context, EERA will continue to monitor these changes closely, advocating for strategic, science-based policies that enable low-carbon energy research and innovation to drive a faster, more resilient, and globally competitive clean energy transition.