Industry news
March 9, 2025

The Clean Industrial Deal (CID): Europe's big bet on green competitiveness

For years, the European Union has pushed the idea that economic growth and environmental responsibility don’t have to be at odds.

The Green Deal was the first major step, a bold vision for a climate-neutral Europe by 2050. But now, there’s a new chapter: the Clean Industrial Deal (CID).

Unveiled by the European Commission last week, the CID is more than just another climate policy. It’s a €150 billion investment in clean technology, manufacturing, and industrial decarbonization, designed to secure Europe’s competitive edge in a world racing toward green solutions. Think of it as a business plan for a low-carbon, high-tech industrial revolution—one that balances sustainability with economic resilience.

This strategy builds on existing Green Deal policies and introduces new financial, regulatory, and industrial measures to accelerate the green transition. It’s particularly crucial for the automotive industry, which faces major shifts in battery production, supply chains, and raw material sourcing.

Let’s break it down.

Big money, big moves

The CID isn't just talk—it’s putting serious cash on the table:

  • €100 billion will be funneled through a new Industrial Decarbonisation Bank, sourced partly from the EU Emissions Trading System (ETS) and the Innovation Fund
  • €50 billion will go toward the InvestEU Programme to boost private sector investment in clean technologies
  • Regulatory overhaul: the EU will revise its State Aid Framework by June 2025, making it easier for governments to invest in renewables and clean tech

This is about more than just reducing emissions—it’s about building markets that drive demand for sustainable materials, green steel, and low-carbon energy.

Supercharging battery production

The next big thing in electric vehicle manufacturing | EY - US

Europe’s electric vehicle (EV) industry is growing, but it's still catching up to global competitors. The CID throws €600 million into battery research and innovation to speed things up.

The EU is also tightening control over critical raw materials—the metals and minerals essential for battery production. The Circular Economy Act, coming in 2026, will simplify recycling rules, limit exports of battery waste, and promote a domestic supply chain for these materials.

The Critical Raw Materials Act (CRM Act) will further support battery production by aggregating demand, facilitating joint purchasing, and matching raw material supplies with industry needs.

And to keep production rolling, the EU is expanding Important Projects of Common European Interest (IPCEIs)—a fast-track funding mechanism for large-scale industrial projects.

Decarbonizing vehicle production

The auto industry is a big emitter—especially when it comes to steel production, which accounts for 27% of the emissions in conventional cars and 15% in EVs.

The CID is putting its weight behind green steel, with €1 billion in 2025 and €600 million in 2026-2027 to fund cleaner production methods, like hydrogen-based steelmaking.

The EU is also setting up low-carbon product labeling for industrial materials like steel, using emissions data from the EU ETS and the Carbon Border Adjustment Mechanism (CBAM). This helps buyers choose sustainably produced materials, pushing the market toward cleaner options.

Making clean energy cheaper

Green, Sustainable, Clean & Renewable Energy | What Does It All Mean?

Energy costs remain a major challenge for European industries. The Action Plan for Affordable Energy aims to install 100 GW of renewable electricity capacity per year by 2030, reducing reliance on fossil fuel imports and stabilizing energy prices.

Key measures include:

  • Expanding Power Purchase Agreements (PPAs) to help industries secure affordable clean electricity
  • New fiscal policies to lower the cost of clean power
  • The European Grids Package, launching in 2026, to accelerate energy infrastructure upgrades

Lower electricity costs will make EVs cheaper to own and operate, boosting adoption rates—especially for fleet owners and low-income buyers through new social leasing programs.

Action plans to keep an eye on in 2025

The Clean Industrial Deal isn’t just one big policy—it’s a framework that sets the stage for sector-specific action plans. Here is a very detailed roll-out plan for 2025:

Access to Affordable Energy

Q1 2025: Action Plan on Affordable Energy
Q1 2025: Legislative proposal on the extension of the Gas Storage Regulation
Q2 2025: EIB pilot offering financial guarantees for PPA offtakers, with a focus on SMEs and energy-intensive industries
Q2 2025: Clean Industrial Deal State aid framework
Q2 2025: Recommendation on network charges
Q4 2025: Industrial Decarbonisation Accelerator Act: Speed-up permitting for industrial access to energy and industrial decarbonisation
Q4 2025: Recommendation on energy taxation
Q4 2025: Guidance on CfD (Contracts for Difference) design, including on combining CfDs and PPAs
Q4 2025: Guidance on promoting remuneration of flexibility in retail contracts
Q1 2026: European Grids Package

Lead Markets: Boosting Clean Supply and Demand

Q1 2025: Delegated act on low-carbon hydrogen, providing regulatory certainty to producers of low-carbon hydrogen
Q4 2025: Industrial Decarbonisation Accelerator Act: Establish a low-carbon product label; Apply sustainability, resilience, and minimum EU content requirement
2025/2026: Communication and legislative proposal on greening corporate fleets
Q4 2026: Revision of Public Procurement Directives to mainstream the use of non-price criteria

Public and Private Investments

2025: IPCEI Design Support Hub
2025: Pilot auction under the Innovation Fund
Q1 2025: Increase InvestEU's risk-bearing capacity
Q2 2025: Clean Industrial Deal State aid framework
Q2 2025: Recommendation to Member States to adopt tax incentives to support the Clean Industrial Deal
Q4 2025: Flagship call under Horizon Europe
2026: TechEU investment programme on scale-ups with the EIB Group and private sector
Q2 2026: Industrial Decarbonisation Bank

Powering the Circular Economy: A Secure Access to Materials and Resources

Q1 2025: First list of Strategic Projects under the Critical Raw Materials Act
Q2 2025: Ecodesign Work Plan adoption
Q4 2026: EU Critical Raw Materials Centre for joint purchases and management of strategic stockpiles
Q4 2026: Circular Economy Act
Q4 2026: Green VAT initiative
Q4 2026: Trans-Regional Circularity Hubs

Global Markets and International Partnerships

Q1 2025: Launch negotiations for the first Clean Trade and Investment Partnership
Q1 2025: Simplification of the Carbon Border Adjustment Mechanism (CBAM)
Q3 2025: Comprehensive CBAM review assessing the feasibility of extending the CBAM scope to other EU ETS sectors at risk of carbon leakage, to downstream sectors and to indirect emissions and support to exporters, closing loopholes
Q4 2025: Trans-Mediterranean Energy and Clean Tech cooperation initiative
Q1 2026: Legislative proposal on an extension of CBAM
Q1 2026: Guidelines on Foreign Subsidies Regulation

Skills and Quality Jobs for Social Fairness

Q1 2025: Union of Skills
Q4 2025: Quality Jobs Roadmap
2025: Guidance on social leasing for clean products
Q1 2026: European Fair Transition Observatory
2026: Skills Portability Initiative
Q4 2027: Review of State Aid GBER rules for social enterprises and recruitment of disadvantaged workers

Speaking at the European Industry Summit on February 26, Commission President Ursula von der Leyen put it bluntly:

We must turn the tide. And this is the central goal of the Clean Industrial Deal. We want to cut the ties that still hold you back. So that Europe can not only be a continent of industrial innovation but also a continent of industrial production.

This isn’t just about climate goals—it’s about reindustrializing Europe, creating jobs, and securing supply chains in an era of rising global competition.

A role for digital tags: transparency and compliance

One challenge in all of this? Tracking sustainability across complex supply chains. That’s where digital tags—like Twintag’s smart product identifiers—come in.

By attaching dynamic QR codes to products, companies can:

  • Provide real-time sustainability data (carbon footprint, recycled content, energy usage)
  • Streamline compliance with new EU regulations on circularity, material sourcing, and emissions reporting
  • Enable better communication with customers and stakeholders, building trust in green claims

As the Clean Industrial Deal rolls out, expect digital transparency to become a key requirement—helping companies stay compliant while giving consumers a clearer picture of what they’re buying.

What’s ahead?

The Clean Industrial Deal reaffirms the EU’s commitment to green growth. It’s a massive, multi-year strategy that blends climate policy with industrial competitiveness, aiming to keep Europe ahead in the global clean tech race.

But the real challenge? Implementation. Over 40 new initiatives need to be passed, funded, and enforced. If the EU can move quickly, this could be the blueprint for a sustainable industrial boom. If not, it risks becoming just another ambitious plan lost in bureaucratic red tape.

One thing’s clear: the race for clean industrial leadership is on—and the EU is all in.

Natalia Revishvili

With an interest in circular economy and sustainable digital solutions, as a Marketing Manager I am constantly learning about how smart tags can bring about a more sustainable future.

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