06. 03. 2026
AUTHOR: Tristan Beucler
After months of delays, the European Commission published its proposal for an Industrial Accelerator Act (IAA), setting the foundation for a common industrial policy for the European Union (EU). At a time when EU industries are facing a crisis, largely caused by unfair overcapacity exports and low domestic demand, this first significant milestone of the Clean Industrial Deal has the potential to create the conditions for the industrial transition. With clear low-carbon and Made-in-Europe criteria for energy-intensive materials and net-zero technologies, this Act has significant potential to stimulate predictable demand for EU-made technologies and products. It signals the EU’s willingness to align with its main trading partners and use taxpayer money strategically to support its own value chains rather than subsidise cheaper imports.
The proposal is a hard political compromise between different Commission services and, hence, can be improved. A few loopholes have been introduced, risking to undermine the certainty and security for the EU industry. Now, co-legislators can maximise the potential of the Act and correct some aspects to avoid the possible fragmentation of its implementation across the single market.
A promising Made-in-Europe strategy that needs to be consolidated
The application of Made-in-Europe criteria to strategic sectors is a central pillar of the Industrial Accelerator Act. These criteria can enhance the EU’s ability to manufacture technologies and materials essential to its economic security and competitiveness, such as batteries, solar photovoltaic, electrolysers, heat pumps, wind turbines, nuclear fission, electric vehicles (EVs), low-carbon aluminium, and cement. For the first time, the Commission will require public authorities to apply Made-in-Europe criteria when using State aid, public procurement, or implementing public support mechanisms such as EV bonuses or building renovation schemes. The broad scope of public tools can maximise this policy’s impact on strategic value chains, strengthening competition and levelling the international playing field.
However, the introduction of a number of exemptions from the Made-in-Europe policy risks leading to an implementation ‘à la carte’, leaving public authorities the choice to apply it or not. For instance, the level of the price exemptions may be too low for certain technologies, such as heat pumps, which are 40-60% cheaper when made in China. In addition, the geographical scope of what is Made-in-Europe is still to be defined and could change the effect of the legislation. All free trade agreements are automatically included in the EU-content definition, but the Commission can remove countries from the list in case of a lack of reciprocity or security of supply risks.
Crucial Foreign Direct Investment conditions to maximise the benefits
As an important complement to Made-in-Europe criteria, the Act introduces conditionalities on Foreign Direct Investment (FDI), ensuring that investments from third countries contribute to European value chains, jobs, and growth.
The Commission’s proposal sets out a list of conditions, ensuring shared ownership, intellectual property and tech transfers, research and development spending, employment of Union workers, and EU content. They are an important lever to ensure investments deliver real benefits for the European economy, not only assembly sites. The Commission can expand the list of sectors covered beyond batteries, electric vehicles, solar photovoltaics, and critical materials, making the law more adaptable to the geoeconomic context. These conditions can have a strong impact on European value chains, without closing the market to foreign investment.
Low-carbon lead markets and critical materials for a European industrial transition
Another pillar of this Act is the creation of lead markets for low-carbon materials through EU-content and low-carbon criteria for public procurement and support mechanisms. Applied to aluminium, concrete and mortar, and steel (though without EU-content), these criteria can create a growing demand in these sectors. This can be a significant incentive for energy-intensive industries to decarbonise their processes in the EU.
However, the lack of a low-carbon steel label is unnecessarily delaying an important signal for the sector. Steel is not covered by a Made-in-Europe policy either, which could lead to increasing imports of low-carbon steel. At a time of crucial investment in decarbonising steelmaking, a robust label can provide security for the industry. Co-legislators can help send this necessary signal.
Photo credit: European Union. 2026
