The European Commission has presented a new policy vision, the Clean Industrial Deal, which will seek to decarbonise and enhance the EU’s energy-intensive industries, as well as bolstering the clean tech sector.
“Europe is not only a continent of industrial innovation, but also a continent of industrial production,” commented Commission president Ursula von der Leyen. “However, the demand for clean products has slowed down, and some investments have moved to other regions.
“We know that too many obstacles still stand in the way of our European companies from high energy prices to excessive regulatory burden. The Clean Industrial Deal is to cut the ties that still hold our companies back and make a clear business case for Europe.”
A strong economy, competitiveness, and a clean future—we're making it happen. Europe’s rich industrial heritage has a bright future ahead. The #CleanIndustrialDeal is our plan to support 🇪🇺 industry to make it sustainable, competitive, and future-ready ↓
— European Commission (@ec.europa.eu) 26 February 2025 at 12:09
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‘A clear message’
Commenting on the initiative, Stientje van Veldhoven, vice-president and regional director for Europe at the World Resources Institute, said, “While some backtrack on climate, the EU has sent a clear message that its economic competitiveness hinges on ensuring that its businesses are equipped to make the inevitable clean energy transition. This policy package largely sets the right priorities, yet it is also lacking in important aspects.
“While the proposal rightly calls for rapid industry electrification, it falls short in addressing energy savings and resource efficiency as key measures. The EU should now provide more clarity on how it will reduce consumption of materials and energy to keep the industrial expansion within planetary boundaries. The same clarity is needed for how it will cut household energy bills by two-thirds by 2035 to address voters’ concerns.”
van Veldhoven welcomed the plan’s focus on circular economy leadership, as well as proposals to mobilise €100 billion for clean manufacturing, adding that “effectiveness will depend on the speed of such financial instruments and the ability to crowd in more funding. To overcome market barriers, the Commission rightly emphasises how public and private procurement can drive a low-carbon industry by including strong sustainability criteria in EU contracts.”
She called on the EU to release a new climate plan, or NDC, before the summer, outlining how it plans to achieve an emissions reduction target of 70-75% for 2035, and to track its path toward climate neutrality by 2050.”
ICLEI Europe reaction
Elsewhere, ICLEI Europe, a network of more than 2500 local and regional governments committed to sustainable urban development, welcomed the announcement of the Clean Industrial Deal, adding that coordination and dialogue with local authorities and stakeholders will need to be reinforced to ensure its effectiveness.
It added, however, that the proposals fall short of ‘recognising the role of cities and regions as hubs of economic activity’, as well as accelerators of both the circular economy and the creation of green jobs.
“We welcome the EU Clean Industrial Deal’s goal of supporting cleaner, more competitive industries while strengthening climate action—an essential objective for resilient communities,” commented Maider Etxebarria Garcia, ICLEI Europe RexCom member and mayor of Vitoria-Gasteiz, Basque Country.
“However, this proposal overlooks the crucial role cities and regions play in enabling clean industrial transitions on the ground. Cities shape lead markets, enable AI-driven infrastructure, foster business collaboration, and act as testbeds for innovation. The Deal must acknowledge cities as key partners in delivering the conditions for a sustainable industrial future.”
