Joint letter for the Clean Industrial Deal to deliver on decarbonisation and competitiveness

This morning, T&E, alongside 15 other organizations, sent key recommendations to the Commission for the Clean Industrial Deal (CID), set for publication on February 26. The CID must provide robust incentives for EU-based industries to adopt cleantech, facilitating their transition toward decarbonised, circular, and innovative business models. The ongoing global cleantech race justifies public support for domestic industries, but such funding must guide companies toward meaningful decarbonisation.

Although the EU hosts innovators in sectors like green steel, battery manufacturing, and EV charging, clear opportunities for growth and scaling remain limited. Mixed demand signals and a fragmented European market undermine the business case for innovative, decarbonised products.

To address these challenges, the letter outlines 15 concrete recommendations across three pillars. First, increasing access to clean and affordable domestic energy, which is essential for the growth of a competitive industrial base. Second, a European industrial strategy that advances decarbonisation and competitiveness, with a sector-specific lens for key industries. Finally, a Clean Investment Plan is needed to unlock private investment via financial incentives and de-risking mechanisms.

For T&E, a key priority is establishing targeted financial support for scaling-up key strategic technologies. This includes enshrining robust “Made-in-EU” and sustainability requirements to State Aid and EU funding, especially under the future European Competitiveness Fund. Another European priority should be to create lead markets via green public procurement and to deploy smart de-risking and competitive bidding approaches to attract private investment through InvestEU and the Innovation Fund.

Quote:

"The Clean Industrial Deal must tackle the major EU’s investment challenge by driving decarbonisation and innovation. The future European Competitiveness Fund should be the financial backbone of a green industrial strategy, scaling up domestic clean tech manufacturing in key sectors like batteries and clean fuels for aviation and shipping. Beyond the next EU budget, the CID must secure substantial new funding to close the investment gap through 2030."

Till Eichler, Sustainable Finance Policy Officer at T&E.