All eyes on EU as it presents Clean Industrial Deal to future-proof energy sector

The European Union has unveiled the Clean Industrial Deal, a transformational business plan outlining concrete actions to turn decarbonization into ‘a driver of growth‘ for European industries by supporting renewable energy sources.

Specifically, the plan aims to lower energy prices, create ‘quality’ jobs and the ‘right’ conditions for companies to thrive, accelerating decarbonization while at the same time securing the future of manufacturing in Europe. With the new plan, the EU wants to tackle three challengers at once—a climate crisis and its consequences, competitiveness concerns, and economic resilience.

As informed, to provide short-term relief, the Clean Industrial Deal will mobilize over €100 billion to support EU-made clean manufacturing. As European industries are said to be faced with “high energy costs and often unfair global competition,“ the framework can drive growth and competitiveness of these industries.

“Europe is not only a continent of industrial innovation, but also a continent of industrial production. However, the demand for clean products has slowed down, and some investments have moved to other regions,” Ursula von der Leyen, President of the European Commission, commented.

“We know that too many obstacles still stand in the way of our European companies from high energy prices to excessive regulatory burden. The Clean Industrial Deal is to cut the ties that still hold our companies back and make a clear business case for Europe.”

Specifically, the focus will be mainly on two closely linked sectors: energy-intensive industries and the clean-tech sector. Circularity is also a central element of the deal, as the EU needs to maximize its limited resources and reduce overdependence on third-country suppliers for raw materials.

The main elements of the Clean Industrial Deal are:

• Affordable energy;
• Boosting demand for clean products;
• Financing the clean transition;
• Circularity and access to materials;
• Acting on a global scale and;
• Skills and quality jobs.

With the Action Plan for Affordable Energy adopted on February 26, 2025, the EU intends to reduce dependence on imported fossil fuels, speed up the roll-out of clean energy, and advance toward electrification and a fully integrated single market for energy.

Furthermore, with the Industrial Decarbonisation Accelerator Act, the EU will increase demand for EU-made clean products by introducing sustainability, resilience, and made-in-Europe criteria in public and private procurements. It will propose concrete measures to address permitting bottlenecks related to industrial access to energy and industrial decarbonization.

In the context of financing, the European Commission will also adopt a new Clean Industrial Deal State Aid Framework to accelerate the approval of state aid to roll out renewable energy, decarbonize industry and ensure sufficient manufacturing capacity of clean tech. It will also strengthen the Innovation Fund and propose an Industrial Decarbonisation Bank, aiming for €100 billion in funding, based on available funds in the Innovation Fund, additional revenues resulting from parts of the ETS as well as the revision of InvestEU. Moreover, the commission plans to launch a dedicated call under Horizon Europe to stimulate research and innovation in these areas. Finally, it would amend the InvestEU Regulation to increase the amount of financial guarantees that InvestEU can provide to support investments. This will in turn mobilize up to €50 billion for the deployment of clean tech, clean mobility, and waste reduction.

Promoting the uptake of renewable and low-carbon hydrogen

According to the EC, hydrogen has a central role to play in decarbonizing the EU energy system, in particular in the hard-to-abate sectors where electrification is not yet a viable option.

The commission said it will therefore adopt in Q1 2025 the delegated act on low carbon hydrogen, to clarify the rules for producing low carbon hydrogen in ‘a pragmatic way’, providing certainty to investors.

To de-risk and accelerate the uptake of hydrogen production in the EU, the commission is expected to launch a third call under the Hydrogen Bank in Q3 2025 with a budget of up to €1 billion and encourage Member States to use the auctions-as-a-service platform provided by the commission, for example by facilitating the use of unspent EU funds.

Moreover, the launch of the Hydrogen Mechanism under the European Hydrogen Bank in Q2 2025 will mobilize and connect offtakers and suppliers, linking participants with financing and de-risking instruments to facilitate aggregation of offtakers’ demand for hydrogen and hydrogen-derived fuels in hard-to-decarbonize industrial sectors and transport, e.g. in the maritime and aviation sectors.

Clean Industrial Deal — a boost for green fuels in ships

New EU plans to lower energy costs by doubling down on deployment of renewable electricity, and to activate more investment and trade instruments to scale clean-tech, have been welcomed by green group Transport & Environment (T&E).

However, a decision to delay proposing an EU 2040 climate target sends a very worrying signal, the group said. The Action Plan on Affordable Energy aims to enable much higher levels of electrification in the economy, which the EU says should rise from 23% today to 32% in 2030. However, more than one year after confirming that it will publish a 2040 emissions reduction target for the EU, the European Commission failed to release a proposal as planned.

T&E said any climb-down from the expected -90% target would deprive European shipping companies and others of the investment certainty that clean technology is here to stay.

T&E welcomed the prioritization of green fuels in the Clean Industrial Deal. It said the plans for a Hydrogen Mechanism – which will connect hydrogen suppliers and buyers with financing options – and the prioritization of the shipping and aviation sectors are crucial. However, the Hydrogen Bank needs not only matchmaking tools but also double-sided auctions, which were omitted today. The text announced plans for a Sustainable Transport Investment Plan, which T&E said should focus on e-fuels as a priority investment.

“The Clean Industrial Deal is a step in the right direction, recognising the essential role that green hydrogen-derived fuels play in decarbonising shipping and aviation. But it lacks essential details on how the EU is going to bridge the price gap between fossil fuels and greener alternatives or address the need for larger and longer term offtake commitments. The Sustainable Transport Investment Plan should fill in those missing details or green fuels risk missing the boat and plane,” Faig Abbasov, shipping director at T&E, noted.

WSC: Clean Industrial Deal is an opportunity for the EU to bridge fuel price gap

As a global shipping hub and major supplier of traditional maritime fuels, the European Union risks being left behind if it doesn’t put serious investment and political commitment behind the Clean Industrial Deal announced today, the World Shipping Council (WSC), the voice of liner shipping, emphasized.

A record number of green-fuel-capable ships are hitting the water right now, but the supply of these fuels remains limited, and cost up to four times more than fossil fuels. The WSC sees the Clean Industrial Deal as an opportunity for Europe to bridge the fuel price gap and build key infrastructure needed to drive transition.

“We’re really pleased to see investments in renewable energy, green hydrogen, and clean transport infrastructure prioritised today,” Joe Kramek, WSC President & CEO, stated.

“If the Clean Industrial Deal is fully realised, it represents an opportunity for Europe to strengthen its position as a global shipping hub. As one of the world’s largest exporters, the EU’s economic power and global influence depend on shipping. However, without the necessary investment and commitment, the EU risks being left behind.”

Key aspects of the deal, including accelerating renewable energy deployment, promoting renewable and low-carbon hydrogen, and increasing EU-level funding for the clean transition, are critical to producing the green marine fuels needed to decarbonize shipping. WSC cautions that current investments have been too low in key elements needed for green marine fuels, such as green hydrogen. The future funding commitment in today’s deal must significantly surpass past efforts to meet the industry’s needs.

Liner shipping makes 65,000 port calls to over 130 EU ports annually, highlighting the need for port infrastructure to support the supply of green fuels. More investment is needed in green fuel production and port infrastructure. The WSC said it looks forward to further details in the upcoming Sustainable Transport Investment Plan and EU Ports Strategy.

“The industry is fully committed to the clean transition. 77% of new containerships and vehicle carriers to be delivered by 2030 are designed to run on green fuels – that’s 689 ships and counting,” Kramek added.

“By 2030, over 22% of fleet capacity (TEU) will be dual-fuel, capable of running on green fuels. For these ships to be able to make the transition, it’s crucial that Europe ensures the availability of green fuels at competitive prices.”

“We need urgent action to prepare Europe for this clean transition. With green-fuel capable ships hitting the water now, the best time to act was yesterday – but the next best time to act is today,” he concluded.

Scaling up the production of clean fuels and clean and innovative technologies in Europe is also a major objective of the report issued last year by Mario Draghi, former European Central Bank President and one of “Europe’s great economic minds”, who delivered recommendations to enhance the competitiveness of the European economy.

The report recognized that shipping together with aviation, are the most difficult sectors to decarbonize. Investment needs for shipping alone will be around €40 billion each year from 2031 to 2050. 

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