Brussels, 8 July 2025
EREF welcomes the European Commission’s initiative to develop an Industrial Decarbonisation Accelerator Act (IDAA) as part of the Clean Industrial Deal, complementing the implementation of initiatives like the Net Zero Industry Act (NZIA) and the revised Renewable Energy Directive (RED III). A credible industrial transformation must be anchored in a future-oriented energy system. A successful green industrial transformation requires clear prioritisation, accelerated permitting, and effective access to renewable energy and infrastructure. The IDAA can support this process; but only if it focuses on renewable energy, ensures access for smaller and mid-sized actors, and avoids lock-in to legacy technologies.
Accelerating permitting for renewables and clean infrastructure
The IDAA must address the core obstacle to industrial decarbonisation: the current lack of timely access to affordable, renewable energy; green hydrogen production; and sustainable fuels depending on renewable supply and flexible infrastructure. Yet slow and complex permitting remains a major bottleneck delaying the deployment of renewable energy and the grid infrastructure needed to decarbonise European industry. Without fast-track deployment of renewables and grid connections, industrial decarbonisation will remain out of reach.
Renewable generation, renewable heat, and flexibility infrastructure are essential for enabling industrial electrification, industrial heat, green hydrogen production, and fuel switching. Many industrial consumers are ready to sign long-term Power Purchase Agreements (PPAs), co-locate with renewable projects, or invest in on-site generation, but currently face barriers when renewable projects are delayed.
EREF urges the Commission to reinforce and accelerate the implementation of the RED III permitting framework. The IDAA should fully operationalise the principles of overriding public interest, acceleration areas, and one-stop-shop procedures. This must include clarity on how RES projects that directly enable industrial decarbonisation, such as on-site PV, renewable heat installations, or firm capacity from biogas, can be deployed in an accelerated way.
Grid access must also be addressed. Current first-come-first-served connection regimes lead to speculative grid reservations and exclude viable, climate-aligned projects. The IDAA, along with the upcoming Grid Package, should encourage Member States to reform grid allocation criteria, introduce maturity checks, and ensure that credible renewable-based industrial projects – including those by SMEs – are not locked out. Similar reforms in the UK and Germany may offer inspiration.
Above all, the IDAA must clearly prioritise renewable energy-based inputs. So-called “low-carbon” solutions that rely on fossil pathways – including CCS-dependent fossil hydrogen or gas-based fuels – cannot deliver the security, climate integrity, or longterm cost reduction needed. A future-proof European industry depends on renewable energy, not fossil lock-ins.
A broad industrial decarbonisation
The concept of “industrial decarbonisation projects” must not be confined to a narrow set of energy-intensive sectors. Europe’s industrial transformation cannot succeed by focusing exclusively on steel, cement or chemicals. It must also support clusters of smaller actors – including SMEs in logistics, food production, manufacturing, or building materials – that play a significant role in emissions and are often more agile in deploying clean technologies.
The IDAA should explicitly recognise decentralised industrial zones and mid-scale clusters as eligible entities. Projects based on co-location with renewable generation, integration into existing industrial parks, or cross-sectoral energy sharing should be prioritised. A more inclusive definition of industrial decarbonisation is not only fair – it is also essential to ensure widespread participation, speed of deployment, and systemic transformation across the economy.
Ensuring access for SMEs and decentralised actors
Smaller and mid-sized producers, as well as renewable energy communities, are indispensable to industrial decarbonisation. Yet they face systemic disadvantages in accessing permitting fast-tracks, support schemes, and financing instruments. The IDAA must guarantee that new definitions, project criteria, or priority clusters are accessible to SMEs and decentralised actors from the outset.
This includes adapting procedures and administrative obligations to SME capacity, providing technical support, and ensuring fair access to industrial financing. Financing tools and cluster-based support should be designed with mechanisms for project aggregation, flexible entry points, and SME-compatible contracts – including for both power and heat. The IDAA must ensure that local value chains and community-based production are not sidelined in the name of scale or simplicity.
Creating demand and lead markets
Insufficient market signals remain a key challenge for industrial actors seeking to invest in cleaner production processes. While carbon pricing under the ETS and the CBAM sends an important signal, it is not sufficient to guarantee stable demand for low-carbon industrial inputs. The IDAA should support demand-side tools such as public procurement criteria, demand creation, minimum share requirements, or offtake mechanisms to secure a market for cleaner products such as steel, chemicals, or cement.
EREF supports the introduction of non-price criteria in procurement and auction design to ensure resilience, EU content and cybersecurity elements. However, the application of these criteria must be transparent, harmonised, and not overburden smaller actors. As set out in EREF’s contribution to the NZIA Implementing Act, these criteria must build on existing frameworks and ensure SME compatibility. In addition, certification and labelling systems should reflect real-life conditions, avoid greenwashing, and strengthen European value chains.
Conclusion
The Industrial Decarbonisation Accelerator Act is an opportunity to reframe Europe’s industrial future: not as a defensive battle against global competition, but as a proactive strategy for resilience, energy sovereignty and climate security. This requires investment in renewable energy, grid upgrades, and inclusive access to clean infrastructure. It demands a rethinking of industrial clusters ready for broad industrial decarbonisation, a clear role for SMEs, and a credible plan for demand creation. EREF stands ready to support the Commission in shaping an ambitious, coherent IDAA that delivers
real transformation; for our industry, for our climate and for Europe.
For more information, please contact
Prof. Dr. Dörte Fouquet
Director
doerte.fouquet@eref-europe.org
Dirk Hendricks
Secretary General
dirk.hendricks@eref-europe.org