Europe's Cleantech Imperative: Driving Industrial Leadership with the Industrial Accelerator Act
The European cleantech sector stands at a critical juncture, demanding decisive action to translate innovation into global commercial success. A recent letter, signed by 114 cleantech companies and investors, urges the European Commission to prioritize a robust Made in Europe strategy within the upcoming Industrial Accelerator Act (IAA).
This initiative is framed as a strategic response to a rapidly shifting global landscape. In an era marked by increasing geopolitical instability and assertive industrial policies from major economies, Europe can no longer afford to deploy public funding and procurement in ways that inadvertently benefit global competitors. The core challenge, as highlighted, is not a deficit of innovation but a need to scale commercial success and secure a leading position in the clean industries of the future.
The proposed Made in Europe requirements are presented not as protectionism, but as a precision tool designed to foster key cleantech value chains. The principle is straightforward: when public money is invested, it should generate a clear and firm demand signal for European-made clean technologies. This approach aims to avoid restricting market access or consumer choice, instead ensuring that taxpayer investments directly benefit Europe, enhancing its competitiveness and resilience.
The current global context necessitates strategic clarity. Europe needs abundant homegrown renewable energy sources for its security, robust clean industries for its economic competitiveness, and secure access to critical materials. The Made in Europe strategy is proposed as a means to achieve these interconnected goals.
The letter outlines specific recommendations for the implementation of Made in Europe requirements. These include consistent application across the EU to strengthen the Single Market, a phased approach with a clear end goal to allow supply chains to adjust and provide clear signals to entrepreneurs and investors, and a firm stance on security criteria for critical components, ensuring they are never waived regardless of cost increases. Furthermore, it calls for clear requirements for Foreign Direct Investment to prevent circumvention, focusing on value-added manufacturing, technology development, and job creation within the EU.
The signatories emphasize that Made in Europe must translate into strong, clear, and predictable demand signals to be credible. Any criteria meant to counter overdependence, if easily waived or partially applied, will send fragmented and uncertain signals, failing to create the lead markets that industry and investors need to scale. The world has changed significantly since initial negotiations, warranting a distinct outcome for the IAA.
Ultimately, the EU faces a choice: to take decisive action to claim clean industrial leadership or risk falling behind. Creating predictable demand through European preference is identified as a targeted, proportionate, and cost-effective way to support scale-up, mobilize private capital, and secure Europe's place in the clean industries of the future. Further delays to the Industrial Accelerator Act, it is warned, would undermine Europe's industrial credibility at a critical moment when speed, clarity, and predictability are paramount for investment decisions.
Cleantech companies and investors across Europe have declared their readiness to invest, manufacture, and create high-quality jobs on the continent, contingent on a supportive policy framework that champions Made in Europe cleantech solutions. The Industrial Accelerator Act presents a pivotal opportunity to deliver this framework and secure Europe's industrial future.