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EU Implements Clean Industry Agreement
06 May 2025The Clean Industry Agreement, approved by the European Commission, aims to turn the decarbonization of industry into an economic growth opportunity.
The European Commission is implementing the Clean Industrial Deal in the face of high energy costs and global competitive pressure. The agreement aims to accelerate the decarbonization of the industry, reduce energy prices, create qualified job opportunities and provide a suitable business environment for companies.
Within the scope of the agreement, supports will be provided to energy-intensive sectors such as steel, metal and chemicals to ensure their transition to clean energy and to maintain their competitiveness in the face of high costs.
On the other hand, emphasis will be placed on clean technologies for the green transformation and decarbonization of the industry. Dependency on imported fossil fuels will be reduced by increasing clean energy investments and electrification and expanding energy efficiency practices. The demand for clean products produced in Europe will also increase. In public and private sector tenders, the fact that it is produced in member countries will be at the forefront.
Financing will be provided for clean production
The European Union (EU) will create a 100 billion euro fund to support clean production and establish the Industrial Decarbonization Bank to accelerate the decarbonization of industry.
Special funds will be allocated for R&D and innovation projects within the scope of the Horizon Europe program. The InvestEU regulation will be reviewed and 50 billion euros of financing will be provided to support clean technology and waste reduction.
Circular economy will play an important role in the decarbonization process
Promoting the circular economy is also a key element of the agreement. In this context, it is aimed to reduce waste, increase recycling and use resources more efficiently.
The Circular Economy Law, which will come into force in 2026, aims to reduce waste, use materials efficiently and create employment. It is aimed for 24 percent of the materials used in the EU to be circular by 2030.
The Carbon Regulation Mechanism at the Border will be simplified
In order for the EU to diversify its global supply chains and ensure its economic security, new commercial agreements will be made by establishing Clean Trade and Investment Partnerships. Additionally, the agreement includes the simplification and strengthening of the Border Carbon Regulatory Mechanism (SKDM).
SKDM aims to maintain the competitiveness of European industry and prevent global carbon leakage by pricing the emissions of carbon-intensive products imported into the EU. With the new regulations, the SKDM process will be simplified and facilitating steps will be taken for countries with carbon pricing systems. Thus, it is aimed to reduce the administrative burden on the industry and promote global carbon pricing.
In addition, a raw material supply mechanism will be established that will allow companies to create common raw material demand. A Critical Raw Materials Center for the EU will be established and more affordable prices will be obtained through bulk purchases.
In the process of transition to a low carbon economy, the Skills Union will be established and the workforce will be provided with new skills in the fields of clean technologies, digitalization and entrepreneurship.
In addition, 90 million euros of funding will be provided by supporting education and professional development through the Erasmus+ program.
To strengthen the EU economy, bureaucratic obstacles will be reduced and policy coordination between member states will be strengthened.
Source: ISO Green Blog
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