March 6, 2026 15:24

A few days later than expected, the European Commission unveiled the Industrial Accelerator Act (IAA) package, a set of measures designed to support European industry at a particularly difficult time for manufacturing while also encouraging the uptake of cleaner technologies.

A key element of the proposal is the introduction of Made in EU and low-carbon requirements for access to public procurement and governative support schemes in strategic sectors such as steel, cement, aluminium, cars and net-zero technologies, including batteries, solar, wind, heat pumps and nuclear. The scope could later be extended to other energy-intensive sectors, including chemicals, which is nonetheless regarded as strategic.

That gap was also highlighted by Cefic, the European Chemical Industry Council. “More is needed, particularly on the demand side, where public procurement provisions remain limited for the chemical sector,” the federation said in a statement.
“The inclusion of chemicals in several key provisions recognises the strategic role of the chemical industry as the ‘industry of industries’,” said Sylvie Lemoine, Cefic’s Deputy Director General. “The focus must now shift to the effective delivery of the proposal, with chemicals fully in scope, building on the work of the Critical Chemicals Alliance, so that industry can fully benefit from the Act’s objectives.”

The proposal has been received more positively by Europe’s plastics producers. As Plastics Europe Managing Director Virginia Janssens pointed out, the Act identifies plastics as a strategic sector for Europe and aims to speed up permitting for new investments, while also ensuring easier access to infrastructure and energy.
“This is an important step towards rebuilding a competitive and investment-friendly environment for Europe’s plastics ecosystem, an essential precondition for getting our circularity and low-carbon transition back on track,” said the head of the association representing European plastics producers.

The legislative proposal also requires Member States to establish a single digital permitting process to accelerate and simplify manufacturing projects, which could also cover chemicals as an energy-intensive sector.

In line with the Draghi report, it also encourages greater reciprocity in public procurement by providing equal treatment for countries that grant EU companies access to their own markets.

The IAA also sets conditions for major investments above €100 million in strategic sectors where a single third country controls more than 40% of global manufacturing capacity. In such cases, investments will have to create high-quality jobs, with a minimum of 50% European employment, drive innovation and growth, and generate real value in the EU through technology and know-how transfer, in addition to complying with local content requirements.

As for the legislative process, the proposed Regulation will now be negotiated by the European Parliament and the Council of the European Union before adoption and entry into force.

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