IN Brief:
- The European Commission’s proposed Industrial Accelerator Act combines industrial permitting reform with procurement and investment rules for strategic sectors.
- The framework targets sectors including steel, cement, aluminium, cars, and net-zero technologies, while introducing digital permitting processes.
- Schneider Electric says faster, clearer approvals could lower delays and financing costs for industrial decarbonisation projects across Europe.
The European Commission has tabled a proposed Industrial Accelerator Act aimed at strengthening demand for low-carbon and European-made industrial products while also simplifying permitting for manufacturing projects across strategic sectors.
The proposal spans steel, cement, aluminium, cars, and net-zero technologies, combining procurement and public-support rules with a new digital permitting approach. The Commission says the Act would support industrial decarbonisation while improving resilience, and the proposal’s explanatory text sets out a broader ambition to lift manufacturing back to 20% of EU GDP by 2035.
Alongside the demand-side measures, permitting is likely to be one of the most closely watched elements for energy and industrial projects. The Commission says Member States would be required to establish a single digital permitting process, with the wider framework intended to reduce fragmentation, speed up project handling, and create a more predictable environment for industrial investment.
That focus has already drawn support from Schneider Electric. Laurent Bataille, EVP Europe Operations at Schneider Electric, said fragmented permitting rules and long administrative delays should not stand in the way of Europe’s industrial transformation, adding that faster and clearer procedures would help reduce project delays, lower financing costs, and improve predictability for industrial decarbonisation investment.
“The Industrial Accelerator Act (IAA) puts forward a pivotal opportunity for the EU to build on the momentum of the Clean Industrial Deal and supercharge its sustainable and competitive industrial ambitions.
“The proposal is a central pillar of the EU’s strategy to respond to the Draghi and Letta reports on how Europe can remain open, competitive, and attractive for investment. Indeed, Mario Draghi’s 2024 report on European competitiveness especially encouraged the EU to develop EU‑level schemes that support companies that are manufacturing and investing in Europe, particularly in strategic sectors such as clean tech, batteries, semiconductors and critical raw materials. The proposal is a positive first step, and we look forward to contributing to the discussions.
“Now it will be up to the policymakers and EU countries to drive this forward and ensure that Europe upholds its ambition to remain competitive. Europe needs fast action and fit-for-the future legislation that can adapt to internal and external challenges that it may face. Clarity, feasibility and consistency will be essential.”
The proposal also adds conditions for certain large foreign direct investments in strategic sectors, including thresholds linked to project value, global market concentration, technology and knowledge transfer, and European employment. That combination of permitting reform, procurement leverage, and investment conditionality means the Act is not just another industrial policy signal; it is a direct attempt to reshape how Europe builds manufacturing capacity for electrification and decarbonisation.
