GROWTH - Industrial Accelerator Act: strengthening Europe’s clean industrial base

The European Commission has proposed the Industrial Accelerator Act (IAA), a new framework to accelerate industrial investment and decarbonisation in strategic sectors. These include steel, cement, aluminium, automotive, and net-zero technologies, with the possibility of extending the rules to other energy-intensive sectors such as chemicals. The proposal introduces several novelties to support industries’ decarbonisation. It facilitates faster permitting for industrial projects by introducing single access points to streamline permitting procedures and ensuring these do not exceed 18 months. The proposal also brings new demand-side measures such as low-carbon requirements and new "made in EU" requirements in public procurement and other forms of public intervention to support the creation of lead markets in strategic sectors. Finally, the IAA also lays down conditions for large foreign investments, which will apply to investments above €100 million by investors from countries that account for a 40% share of global production. This will help to ensure that major foreign investments create high-quality jobs, drive innovation and generate real value in Europe, while ensuring EU remains open to trade and investment and maintains equal treatment for partners that provide reciprocal market access.

Date: 19/03/2026

The Industrial Accelerator Act, adopted by the Commission on 4 March 2026, aims to accelerate the decarbonisation and expansion of Europe’s industrial capacity while strengthening supply chains in strategic sectors.

The proposal rests on three main pillars:

1.Faster permitting for industrial projects.

Industrial manufacturing projects will benefit from a streamlined and digital “one project – one procedure” approach through a single access point. For projects in energy-intensive industries and clean technologies, permitting procedures should not exceed 18 months. Member States will also need to designate industrial acceleration areas, where site-level permitting is already completed and enabling conditions in place to support manufacturing projects, allowing project promoters to focus only on activity-specific permits.

2.Creating lead markets for clean industrial products.

The Act creates lead markets for clean and European manufacturing where public money is involved. It introduces targeted requirements for low-carbon and/or made in EU steel, cement and aluminium in public procurement and support schemes, Union-origin requirements for electric vehicles, and additional Union-origin requirements for selected net-zero technologies and components under the NZIA framework, including in procurement, auctions and some support schemes.

3.Strengthening resilient investment in strategic sectors.

The Act also introduces conditions for certain large foreign investments to ensure they strengthen Europe’s industrial ecosystem. Investments above €100 million by investors from countries that account for a 40% share of global production may be subject to conditions when they concern strategic sectors such as batteries, electric vehicles, photovoltaics and critical raw materials. These conditions can relate to areas such as job creation, innovation and R&D activities, sourcing within the EU, joint ventures or shareholding structures, ensuring that major investments contribute to resilient European value chains.

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