The European Commission today unveiled its long-awaited Industrial Accelerator Act (IAA), a flagship proposal to fast-track Europe’s clean industrial transition. NGOs welcome the direction, but warn that Europe’s industrial shift away from fossil fuels will require greater clarity and firmer rules, and shouldn’t come at the expense of nature.

The Act introduces industrial acceleration areas, and public procurement quotas, including a 25% requirement for low-carbon steel and aluminium, and 5% for concrete and mortar.

While these measures aim to stimulate demand for cleaner manufacturing, they are not yet matched with robust definitions, binding decarbonisation timelines or firm constraints on polluting technologies.

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Riccardo Nigro, policy expert for zero pollution industry at EEB, said:

“This proposal brings the carrot for industrial decarbonisation, but it lacks the stick. Without a strong, predictable carbon price and clear, binding fossil fuels phase-out timelines, it will not deliver. Relying on fossil fuels for carbon-intensive industry is a costly liability, made painfully clear as energy prices spike amid the Middle East war”.

“The EU already has the technologies to end the fossil fuel era in steel, cement and beyond. What it needs are predictable rules: strong carbon pricing, clear incentives, binding standards and robust environmental assessments. The IAA complements the existing framework with incentives, but on its own, it will not trigger the transformation Europe needs.”

Low-carbon quotas: a floor, not a transformation

The Act sets a minimum 25% low-carbon requirement for steel and just 5% for concrete in public procurement – a step forward, but still too modest to reshape the market.

Around 45% of EU steel production already comes from lower-emission electric arc furnaces. A 25% quota could therefore formalise existing production patterns rather than drive deep decarbonisation of primary steel. Similarly, a 5% quota for low-carbon concrete would only cover a small share of low-carbon cements and is unlikely to reduce the average clinker-to-cement ratio in the EU, a key lever for decarbonising cement.

Green steel and low-carbon concrete need definitions

The long-awaited voluntary steel label was not presented. Instead, the Commission will focus on developing secondary legislation under the EU’s Ecodesign framework (ESPR).

Anchoring steel and cement labelling in the Ecodesign framework makes sense: it already works in other sectors and considers environmental impacts beyond greenhouse gas emissions. But Europe has already lost a year waiting; industry needs clarity now, not another round of delays.

The next step is simple: a strong, mandatory label with clear sustainability criteria. Halfway solutions or voluntary schemes will blur the picture and weaken investment signals. Europe needs clear definitions for low-carbon industrial products so that public money rewards genuinely clean production, not business-as-usual projects dressed up as green.

Unclear what qualifies as a decarbonisation project

The IAA defines “energy-intensive decarbonisation projects” as those that significantly and permanently reduce CO₂ emissions to the extent technically feasible. This threshold remains too vague.

Public support must be tied to measurable emissions reductions and clear fossil fuel phase-out timelines aligned with the EU’s climate and zero-pollution targets. Without quantified benchmarks consistent with EU goals, incremental efficiency upgrades in fossil-based technologies could qualify as “decarbonisation”, undermining the Act’s credibility.

Acceleration areas: speed must not override safeguards

The Act introduces national industrial acceleration areas where projects are automatically considered to be strategic and of public interest. This risks generalising derogations and leading to rushed, low-quality assessments.

Environmental assessments are conducted for the area as a whole, rather than for individual projects, through aggregated permits. Unlike renewable acceleration areas in EU energy legislation, these zones are not limited to specific technologies. As a result, aggregated assessments cannot provide enough evidence for comprehensive evaluations or appropriate, project-specific mitigation measures, weakening scrutiny at the project level.

Natura 2000 and nationally protected areas are not explicitly excluded, only deprioritised. Acceleration must not come at the expense of Europe’s flagship nature and water laws. Weak safeguards would likely trigger legal challenges, slowing projects rather than speeding them up.

Lead markets and “Made in EU”

The Act seeks to strengthen lead markets and “Union origin” requirements in public procurement, including through amendments to the Construction Products Regulation. However, broad exemptions remain (including a 25% “disproportionate cost” clause) meaning green public procurement could remain optional in practice.

ENDS

Note to editors

• EEB’s Response to Industrial Decarbonisation Accelerator Act call for evidence.
• EEB position: Made with EU green criteria.
• EEB Recomendations: Green Public Procurement.