Europe’s Clean Industrial Deal will mobilize 100 billion

The Clean Industrial Deal will mobilize over 100 billion euros in the short term to support clean industrial production in the EU, including an additional 1 billion euros guaranteed under the current common budget. The European Commission announced this when presenting the plan.

Brussels, as anticipated, plans to simplify state aid rules by June to accelerate the transition to clean energy, promote the decarbonization of industry, and ensure adequate manufacturing capacity for green technologies in Europe.

“Europe is not only a continent of industrial innovation, but also a continent of industrial manufacturing. We know that too many obstacles still stand in the way of our European companies, from high energy prices to excessive regulatory burdens. The Clean Industrial Deal is designed to remove these obstacles that hold back our businesses and make Europe a clear and competitive option for business.” This was said by European Commission President Ursula von der Leyen, commenting on the presentation of the Clean Industrial Deal.

One of the other items on the roadmap is also the strengthening of the European Innovation Fund. The Commission will also propose an “Industrial Decarbonization Bank, to secure 100 billion euros in funding, based on the resources available in the Innovation Fund, additional revenues from parts of the Ets system, and the review of InvestEU.”

Among the planned measures, the Commission announced the amendment of the regulation that established InvestEU, the plan to stimulate investment in competitiveness. The initiative aims to improve the fund’s capacity to bear risks.
“This will mobilize up to 50 billion euors of additional private and public investment, including in the areas of clean technology, clean mobility and waste reduction,” reads the note issued by Brussels. The European Investment Bank (EIB) will commit to launching new financial instruments to support the Clean Industrial Deal. The Luxembourg-based Bank will propose a “grid manufacturing package” to provide counter-guarantees and other risk support to manufacturers of grid components.

The Commission will also adopt a circular economy law by 2026 to accelerate the circular transition and ensure that scarce materials are used and reused efficiently. The initiative also serves to reduce global dependencies and create high-quality jobs.

“The goal is to make 24% of materials circular by 2030,” reads the press release issued by Brussels. Europe needs “a transformational business plan that brings together climate, circularity and competitiveness in a single growth strategy,” the Commission notes in the knowledge that “businesses need to be confident that large climate-neutral investments in energy-intensive industries and clean technology will be profitable.”