The draft adopted by the Commission was prepared in line with the recommendations contained in the report prepared by Mario Draghi. Accordingly, “Made in EU” and low-carbon requirements will be introduced in public procurement and public support programs. These requirements are expected to be applied primarily in selected strategic sectors, starting with steel, cement, aluminum, automotive, and zero-emission technologies. It is stated that the application could be extended to other energy-intensive sectors such as chemicals if deemed appropriate.
The regulation aims to strengthen production capacity in Europe and increase demand for clean technologies produced in Europe, while a single digital permitting process is also planned to accelerate production projects in member states.
The Commission stated that the legislative proposal aims to strengthen the European industrial base in the face of increasing global competition and growing dependence on non-EU suppliers in strategic sectors. Recalling that manufacturing accounted for 14.3% of the EU’s gross domestic product in 2024, the new regulation targets raising this share to 20% by 2035.
The proposal also envisages increasing reciprocity in public procurement and ensuring equal treatment with countries that provide market access to EU companies. It is stated that content from countries with which the EU has a free trade agreement or customs union will be accepted as of EU origin.
Furthermore, the legislative proposal introduces certain conditions for large investments exceeding €100 million in strategic sectors. These investments will be required to create high-quality employment, support innovation, and contribute to local value creation through technology transfer. In addition, projects are targeted to provide at least 50% European employment.
With the new regulation, priority will be given to low-carbon products in public procurement, with the aim of increasing demand for industrial products such as steel, cement, and aluminum, as well as zero-emission technologies including batteries, solar and wind technologies, heat pumps, and nuclear energy. Specific low-carbon preferences for the steel sector are also envisaged.
The proposal also includes simplifying and digitizing permitting processes for industrial projects. In this context, a single digital “one-stop shop” system will be established, and clear time limits will be applied for permitting processes in energy-intensive decarbonization projects.
The Commission also plans to establish Industrial Acceleration Zones to promote sustainable production. These zones aim to cluster clean production projects, facilitate energy infrastructure investments, and support investors.
The legislative proposal adopted by the Commission will be negotiated and approved by the European Parliament and the Council of the European Union before it can enter into force.
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