The European Commission proposes an Industrial Acceleration Law to promote "Made in EU" clean technologies

TheEuropean Commissionhas presented a legislative proposal to increase the demand for low-carbon technologies and products manufactured in Europe through the newIndustrial Acceleration Law, an initiative aimed at boosting manufacturing, business growth, and job creation in theEuropean Union.The proposal, aligned with the recommendations of the well-knownDraghi Report on European competitiveness, introduces specific requirements for "Manufacturing in the EU" or for low carbon emissions in public procurement and public aid systems. These measures will initially apply to strategic sectors such as steel, cement, aluminum, automotive, and net-zero emissions technologies, although the framework will allow for expansion to other high energy consumption sectors, such as chemicals.The objective is to strengthen European productive capacities and stimulate demand for clean industrial products manufactured on the continent. Additionally, the law will require Member States to implement a unique digital process for granting permits, in order to accelerate and simplify manufacturing projects.The Commission highlights that the initiative aims to increase the added value generated in Europe in a context of growing global competition and dependence on external suppliers in strategic sectors. Currently, the manufacturing industry represents 14.3% of the European GDP, and the new regulation sets a goal of raising this figure to 20% by 2035.Preference for "Made in EU" productsAmong the most prominent measures is the introduction of preferences for European products and low-emission products in public procurement systems. These preferences will apply to key materials and technologies such as cement, aluminum, or net-zero emissions technologies, including batteries, solar energy, wind energy, heat pumps, or nuclear energy.In the case of steel, the regulation proposes specific criteria based on low carbon emissions to stimulate demand for clean steel in the European market. According to the Commission, the strategic use of public funds will help attract investments, promote innovation, and strengthen the industrial competitiveness of the bloc.The proposal also introduces new conditions for certain direct foreign investments. Although the EU will continue to maintain its openness to international investment, investments exceeding 100 million euros in strategic sectors will be subject to specific requirements when a single third country controls more than 40% of the global manufacturing capacity in that area.These investments must generate high-quality jobs, promote innovation, and bring real value to the European market through technological transfer, in addition to ensuring that at least 50% of the jobs created are European.Another key measure is the simplification of administrative procedures for industrial projects. The law proposes a digital "single window" with clear deadlines and the principle of tacit approval at certain stages of the process for decarbonization projects in energy-intensive industries.It is also anticipated the creation ofindustrial acceleration areas, designed to foster collaboration between clean industrial projects, facilitate investments in energy infrastructure, and promote the development of capabilities and skills.The proposed regulation will now be negotiated by theEuropean Parliamentand theCouncil of the European Unionbefore its final adoption and entry into force. The Commission hopes that this initiative will strengthen European industrial resilience and contribute to the transition towards a more sustainable and competitive economy.