Europe’s Clean Industrial Deal: Climate Ambition Meets Industrial Strength
- maria tsaousi
- Jun 11
- 3 min read
As the world races toward net-zero emissions and geopolitical tensions reshape global supply chains, Europe faces a critical challenge: how to decarbonise its economy without deindustrialising it.
On June 3, 2025, the European Parliament’s Industry, Research and Energy (ITRE) committee endorsed a key resolution aimed at bridging this divide. Their backing of the Clean Industrial Deal signals a strong political push to align climate action with industrial competitiveness — and to ensure that Europe's clean transition is also an industrial renaissance.
What Is the Clean Industrial Deal?
First unveiled by the European Commission in February 2025, the Clean Industrial Deal is a comprehensive plan to:
Strengthen energy-intensive industries such as steel, cement, and chemicals.
Accelerate clean tech innovation and deployment.
Cut energy prices through market reform and infrastructure investment.
Ensure Europe remains globally competitive in the race for green technologies.
The ITRE committee's resolution gives this framework political momentum and calls for faster, more ambitious implementation.
What MEPs Are Calling For
The resolution highlights a suite of interconnected priorities:
1. Faster Permits, Simpler Rules
MEPs want to streamline permitting for clean tech and industrial projects. They propose harmonising approval processes, reducing administrative burdens for SMEs, and fast-tracking projects in key sectors — particularly energy infrastructure and decarbonisation technologies.
2. Permanent Carbon Removals
Recognising the challenge of decarbonising "hard-to-abate" sectors, MEPs call for building a solid business case for carbon removals, including capture, storage, transport, and utilisation. This would complement existing emissions reductions strategies.
3. Affordable, Clean Energy
The resolution supports the Commission’s Action Plan for Affordable Energy, including:
Electricity Market Design reform
Power Purchase Agreements (PPAs)
Two-way Contracts for Difference (CfDs) to stabilise prices and reduce risk for clean energy investments
MEPs also endorse pilot programs with the European Investment Bank (EIB) to help corporations secure long-term clean energy contracts.
4. Fair Competition and Market Protection
MEPs stress the need to shield the European market from unfair practices, such as dumping of industrial overcapacity by third countries. They reaffirm support for the Carbon Border Adjustment Mechanism (CBAM) — particularly as free allowances in the EU Emissions Trading System (ETS) are phased out.
5. Infrastructure and Integration
To deliver clean, cheap energy, the EU must complete the Energy Union, MEPs argue. This means:
Investing in cross-border grid infrastructure
Expanding renewable energy capacity
Supporting nuclear energy (where chosen by Member States), including Small Modular Reactors (SMRs) and nuclear fusion research
6. A Clear Definition for Clean Hydrogen
With low-carbon hydrogen seen as a pillar of the energy transition, MEPs urge the Commission to adopt a technology-neutral and investment-friendly definition in upcoming legislation, and to adjust the delegated act on RFNBOs (Renewable Fuels of Non-Biological Origin) based on industry feedback.
Tools for the Transition
Two key instruments are spotlighted in the resolution:
The Industrial Decarbonisation Bank: Proposed as a core funding mechanism to scale clean industrial investments, based on carbon impact, scalability, and security of supply.
The Action Plan on Clean Tech: MEPs want a dedicated plan that provides tailored support for strategic sectors, along with measures to improve access to finance and simplify funding for small innovators.
Next Steps
The resolution is non-binding, but politically significant. Adopted by 60 votes to 15 (with 6 abstentions), it now moves to a full plenary session of the European Parliament. There, MEPs will debate the proposal with the Commission and the Council — a sign that industrial policy is returning to the top of Europe’s agenda.
Why This Matters
Europe is at risk of falling behind in the global race for clean technology. Countries like the U.S. and China are investing aggressively in domestic manufacturing, green infrastructure, and strategic supply chains. The Clean Industrial Deal is Europe’s answer — a strategy to protect jobs, secure energy, and build long-term competitiveness in a decarbonising world.
But success will depend on more than strategy. Speed, funding, and coordination across Member States will be critical. If implemented well, the Clean Industrial Deal could be a cornerstone of Europe’s green, industrial future.
Your Turn
What’s your take on the Clean Industrial Deal? Can Europe truly balance decarbonisation with industrial growth? What sectors stand to benefit the most?
Join the conversation on social media using #CleanIndustrialDeal #GreenIndustryEU #EUGreenTransition — or leave a comment below.
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