European Commission launches Industrial Acceleration Act to protect critical EU sectors

In order to receive public money or opt for tenders, requirements are imposed on the inclusion of European-made components: six months after the approval of the standard, 70% of the components of an electric vehicle, except for the battery, must have been manufactured in the EU.

After numerous delays, pressure from industrial sectors and capitals due to the different economic interests defended by each country, the European Commission launched the Industrial Acceleration Act (IAA) on Wednesday, which introduces “specific and proportionate” “Made in the EU” and low-carbon requirements to be able to access public procurement and obtain public support. The major global objective is for the weight of the manufacturing industry to reach at least 20% of the GDP of the European Union by 2035. It is also “protecting European companies from unfair competition”, especially from China, and strengthening the industrial sector in the face of Donald Trump’s chaotic trade policy. For example, in order to access public aid or tenders six months after the approval of the standard, 70% of the components of an electric vehicle, except for the battery, must have been manufactured in the EU, while three years after the Law in force, the inverters and solar panel cells must be European. “In the face of unprecedented global uncertainty and unfair competition, European industry can rely on the provisions of this Act to boost demand and ensure resilient supply chains in strategic sectors. It will create jobs by directing taxpayers’ money towards European production, reducing our dependencies and strengthening our economic security and sovereignty,” said Stéphane Séjourné, Executive Vice-President for Prosperity and Industrial Strategy at the European Commission. The IAA affects the manufacturing industry, but it particularly touches energy-intensive sectors, the entire automotive value chain, and zero-emission technologies. In this way, low-carbon requirements are introduced for steel used in automotive and construction, while the “Made in the EU” and low-emission criteria apply to cement used in construction and aluminium used in automotive and construction, when subject to public procurement or other forms of public intervention. In the case of zero-emission technologies, the Act sets out “Made in the EU” requirements for batteries, battery energy storage systems, solar photovoltaic (PV), heat pumps, wind power, electrolysers and nuclear technologies, where they are subject to certain public procurement procedures, auctions and support schemes. It also introduces “Made in the EU” provisions for electric vehicles (EVs) and their components.

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