Clean Industrial Deal: Political Challenges And Industrial Opportunities For Europe

Shaping a Cleaner Industry: High Stakes for Europe’s Global Competitiveness

Europe is wagering its industrial, economic, and strategic future in a decisive race: to succeed in its green transition without losing ground to China and the United States. The challenge is immense, but the roadmap is now clear: the Clean Industrial Deal, launched by the European Commission, marks a historic turning point where decarbonisation, sovereignty, innovation, and competitiveness converge.

The Industrial Backbone: Steel, Automotive, Chemicals

The Clean Industrial Deal is built around the most carbon-intensive sectors – steel, automotive, and chemicals – not to penalise them, but because they are the pillars of our economy and sovereignty. Their transformation will elevate entire European value chains. These industries already face very high energy costs, unfair competition, and aging infrastructure. Their recovery depends on a proactive policy combining public support, regulatory stability, and protection against trade distortions.

Hydrogen, Batteries, Circular Economy: Levers of Sovereignty

Three strategic levers have been identified: hydrogen, batteries, and the circular economy. Hydrogen is essential to decarbonise heavy industry, yet its rollout is hindered by high costs, lack of infrastructure, and sometimes discouraging regulation. A wake-up call is needed: support for low-carbon hydrogen, legal stability clauses, and faster permitting.

In the battery sector, Europe has started to build a competitive industry through public-private partnerships such as BATT4EU. But the pace remains too slow: the next budgetary framework must make massive investments in this value chain if we are to compete with Asia.

The circular economy remains too undervalued in Europe’s industrial strategy. Yet reducing our dependence on critical raw materials requires repair, recycling, and eco-design. Instead of opening new mines, we must invest in efficiency and resource-conscious practices.

Competitiveness and Transition Go Hand in Hand

The green transition will only succeed if it is economically viable. Reducing electricity costs for industry – notably by strengthening energy independence and stabilising markets – is a priority. This also means moving toward a truly integrated European energy market: interconnected, resilient to external shocks.

Moreover, excessive bureaucracy is a burden. Businesses today must navigate a multitude of plans, reports, and indicators – often redundant – that slow down action and investment. The call for simplification, echoed by several Members of Parliament, is legitimate. A single transformation and investment plan, backed by clear incentives and administrative recognition, must become the norm.

Towards Assertive Industrial Autonomy

In a world where states heavily subsidise their industries, Europe can no longer afford to operate within an overly rigid framework. It must protect its champions, safeguard its strategic resources (such as steel scrap), develop effective carbon adjustment mechanisms, and avoid poorly calibrated rules that weaken its industrial base.

European industry can succeed in its transformation – but it needs a strategy that is clear, coherent, and easy to navigate. The Clean Industrial Deal is a first step. The real test will be in its swift implementation, with tangible results and governance that includes industrial stakeholders at every level.

In the face of climate urgency, geopolitical tensions, and global economic fragmentation, Europe must make a choice: endure or act. The real solution lies in accelerating investment, simplifying regulation, and ensuring strategic coherence.

Editor-in-Chief 

Laurent ULMANN