Source: European Parliament
Industry in Europe is under pressure, due to several factors, including high energy prices, international competition amidst rising geopolitical tensions, and overcapacities in third countries[1]. Decarbonising our economies is a global challenge that can be an economic opportunity, as flagged in the Draghi Report[2]. The European Green Deal[3] and the recent Clean Industrial Deal[4] provide the toolbox to strengthen the business case for decarbonisation in Europe .
The Clean Industrial Deal puts forward concrete actions to turn decarbonisation into a driver of growth for European industries. Specific measures include the Affordable Energy Action Plan[5], aimed at lowering energy bills while promoting the necessary transition to a low-carbon economy, and the upcoming Industrial Decarbonisation Accelerator Act, which will increase demand for EU-made clean products. The Clean Industrial Deal identifies seven indicators to measure progress, such as the annual installation of renewable electricity capacity and investment volumes under InvestEU[6] supporting industrial transition.
The Commission is not considering the introduction of a direct carbon levy for citizens on top of the EU Emissions Trading System[7].
- [1] 2025 Annual Single Market and Competitiveness Report: https://single-market-economy.ec.europa.eu/publications/2025-annual-single-market-and-competitiveness-report_en .
- [2] https://commission.europa.eu/topics/eu-competitiveness/draghi-report_en.
- [3] https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal_en.
- [4] https://commission.europa.eu/topics/eu-competitiveness/clean-industrial-deal_en.
- [5] https://energy.ec.europa.eu/strategy/affordable-energy_en.
- [6] https://investeu.europa.eu/index_en.
- [7] https://climate.ec.europa.eu/eu-action/eu-emissions-trading-system-eu-ets_en.