European industry is going through a period of fundamental change. Rising (not only) energy costs, the pressure of global competition and, above all, new public expectations and the requirements of EU environmental regulation. All of these factors are putting pressure on the current EU industrial environment, which is looking for new ways to optimise production processes, reduce costs and meet regulatory obligations.
In response to this, the European Commission has introduced key new EU initiatives over the past year to help European industry strengthen its position in the global marketplace and address current challenges. A key element is support for businesses that invest in modernising and improving the efficiency and sustainability of their operations or are directly involved in the production of clean technologies that help accelerate energy transition and decarbonisation.
These technologies include solar and wind power plants, battery storage, electrolysers, heat pumps or carbon capture and storage technologies.
The main framework for support in currently emerging from the European Clean Industrial Deal (CID), a new package of legislative and financial instruments adopted in February 2025.
The CID offers businesses access to cost relief in the form of more favourable tax regimes or reductions in regulated charges for electricity consumption at off-take sites. Businesses can also expect to have access to direct financial incentives, faster and easier administrative permits for various technology and energy projects, and more stable conditions for investment.
Streamlined permitting processes and increased demand for EU technologies
Among the main CID instruments is a proposal of the Industrial Decarbonisation Accelerator Act (IDAA), which is expected to be adopted in the last quarter of 2025. The IDAA sets out concrete conditions for streamlining permitting processes, digitization of administrative procedures and enhancing the public interest in the approval of strategic projects.
The IDAA will also introduce "non-price criteria" for public and private procurement. These criteria will consider aspects such as sustainability, circularity or the resilience of a particular supplier's supply chain. A key requirement will be a mandatory preference for EU clean technology manufacturers, which should lead to a significant increase in demand.
€100 billion for decarbonisation
Rules for financing decarbonisation projects will also be loosened. The European Commission plans to allocate around €100 billion for this purpose, to be managed by the newly established Industrial Decarbonisation Bank. This means new financing opportunities for businesses at key stages of the investment cycle.
At the same time, the new Clean Industrial Deal State Aid Framework (CISAF) was published on 25 June 2025. CISAF represents a new public support framework that simplifies access to state funding for strategic industrial projects.
Boosting clean technology manufacturing in the EU
In addition to the CID strategic initiative, the Net-Zero Industry Act (NZIA) also addresses the promotion of clean technology manufacturing in the EU. The regulation is directly applicable from 29 June 2024. The NZIA aims to significantly increase the production capacity of clean technologies and their key components within the EU and to remove barriers to the expansion of such production.
Under the NZIA, the EU as a whole should reach a benchmark of manufacturing capacity of at least 40 % of its annual clean technology deployment needs by 2030, and 15 % of world production of these technologies by 2040.
For this purpose, the NZIA introduces the status of so-called strategic projects, which will be eligible for:
- fast-track authorization process (max. 9-18 months depending on capacity);
- priority access to public funding;
- higher visibility in national strategies.
Emphasis is also placed on the role of Member States, which now have the possibility to designate specific areas where concentrated industrial activity in the field of clean technologies will emerge. These areas are referred to as "Net-Zero Valleys". The right location of a project can have a significant impact on its economic viability.
Sufficient preparation is the key to success
All the opportunities described above - from fast-track permitting and targeted public support to new market mechanisms for clean technologies - will only be available to businesses if projects are set up in line with the new legal framework from the beginning.
Success will therefore depend not only on technological solutions or ambition, but also on the ability to navigate changing legislation, properly assess project eligibility and communicate effectively with public administrations.
Businesses wishing to make the most out of these tools should not underestimate the initial phase - whether it is strategic planning, targeting investment projects correctly or ensuring legal certainty when applying for support. In this respect, the role of specialist legal advisers is increasingly being used to help businesses not only to interpret the new rules but also to put them into practice in their specific business and investment plans.
By Anna Cervanova, Senior Associate, and Malvina Izakova, Junior Lawyer, Rowan Legal
