ECOS | Environmental Coalition on Standards

26 February 2025

EU Clean Industrial Deal: Some opportunities with few guarantees

Press release | The Clean Industrial Deal presents a vision that could help to decarbonise Europe’s industry, but there are still too many unknowns, environmental group ECOS warns. For the EU to stay competitive in the long-term, and be a clean industrial leader, the wellbeing of people and planet must be woven into every aspect of how this strategy is implemented, ECOS says, otherwise it will not deliver what has been promised.

In its Clean Industrial Deal [1], the EU has taken some steps towards advancing the European Green Deal. For example, the 2040 emissions reduction target of 90%, the focus on reducing energy costs, and the willingness to apply circular economy principles more widely.

However, with many possible options still on the table for many different industries, the ultimate direction of travel is not yet clear, warns environmental group ECOS. Many doors have been left open to implementation — good and bad.

There is potential, and risks

Today’s publication is a mixed bag, says ECOS, with encouraging signals in some areas, and questions raised in others. For example:

Lead markets

Public procurement can stimulate the development of lead markets if it is strategically designed to do so. Prioritising non-price criteria (such as environmental performance and resilience) in public tenders drives demand for key industrial goods (such as green cement and steel) and is an important step towards this [2].

Cement

Cement is a key industry for Europe, with high CO2 emissions, and European innovators have long called to raise the bar [3]. It is also energy intensive and in need of an updated and sector-wide shift to quickly decarbonise [4]. However, unlike steel or automotives, it receives little attention in the Clean Industrial Deal. This is worrying because key EU policies such as the EU Emissions Trading System (ETS) and Construction Products Regulation (CPR) urgently need to adjust to the many low-carbon cement and concrete innovations on the market. Decarbonising such a polluting industry is essential and bold steps are needed to make it happen.

Circular economy

The ambition of the Clean Industrial Deal is to make the EU the world leader on circular economy by 2030. This is encouraging, but sustainable resource management [5], sufficiency, and demand reduction are missing. We cannot recycle our way out of the triple planetary crisis — we must also reduce the resources we use [6]. Ecodesign has a lot of potential as one of Europe’s most successful tools to support and mainstream innovations and energy savings [7] — for example, through the Ecodesign for Sustainable Products Regulation (ESPR) and CPR. However, the lack of attention given to the effects of toxic pollution on human health and the environment, as well as to clean material streams in the circular economy, is concerning. This would have helped to prioritise conserving natural resources and contributing to ecosystem restoration.

Energy

Focus on renewable energy and lowering costs for businesses is reassuring, but ultimately consumers are the ones burdened by the energy crisis, with locked-in fossil fuel infrastructure and high prices. The energy transition for EU citizens happens mainly via energy savings and energy efficiency measures, so it’s a problem that these are largely missing from the Clean Industrial Deal. Without prioritising energy savings and efficiency, it will be harder and slower to secure our energy system, transition away from fossil fuels, and make bills more affordable.

Hydrogen

The focus on electrification and ‘renewable’ hydrogen to help decarbonise energy intensive industries is promising. However, we must not let that attention contribute to moving the goalposts when it comes to the definition of ‘low-carbon’ hydrogen in the upcoming Delegated Act on Low-Carbon Hydrogen. If the concept must exist at all, only a strict and accurate definition of low-carbon hydrogen will contribute to lowering emissions — anything less will only delay our transition away from fossil fuels [8].

Bioeconomy

Attention given to bioeconomy is encouraging because in the context of planetary boundaries, biomass is scarce. The focus should be on reducing the impacts of the bioeconomy, restoring nature, operationalising the cascading use principle, supporting sectors that are truly aligned with ambitious ecological principles, and avoiding regrettable substitution effects.

While industry is a key for Europe’s economic vitality, it comes with significant environmental and health impacts. Balancing the green industrial transformation — with its emphasis on decarbonisation, resource use reduction, electrification, efficiency, and true circularity — must go together with the safeguarding of social security, biodiversity, and environmental health.

If processes to develop and implement initiatives under the Clean Industrial Deal do not reflect environmental and social points of view, we could end up with policies that deliver only for certain businesses, and not decarbonisation or EU citizens, ECOS cautions.

Quote

Joren Verschaeve, Senior Programme Manager at ECOS — Environmental Coalition on Standards, said:

The Clean Industrial Deal needed to act decisively to make EU industry decarbonised and more competitive globally, but instead it’s an opportunity without guarantees. For the EU to become the leader in clean and circular manufacturing it aspires to be, industrial decarbonisation must match the scale of the climate crisis. For that, we need clear support for European innovators, more efficiency, less wasted energy and resources, and civil society included at every stage of implementation.

ENDS

Notes to editors

[1] ECOS recommendations for the Clean Industrial Deal: https://ecostandard.org/publications/clean-industrial-deal/

[2] ECOS report, ‘Buy better to build better: Driving public purchase towards green construction products’: https://ecostandard.org/publications/report-buy-better-to-build-better-driving-public-purchase-towards-green-construction-products/

[3] Alliance for Low-Carbon Cement & Concrete (ALCCC): https://alliancelccc.com/

[4]  Alliance for Low-Carbon Cement & Concrete (ALCCC) report, ‘Fast-tracking cement decarbonisation’: https://alliancelccc.com/policy/report-fast-tracking-cement-decarbonisation/

[5] ECOS white paper, ‘Sustainable resource management in the EU’: https://ecostandard.org/publications/sustainable-resource-management-directive/

[6] ECOS position paper, ‘Recommendations for an EU Circular Economy Act’: https://ecostandard.org/publications/recommendations-circular-economy-act-eu/

ECOS letter on construction, ‘No more time to waste’: https://ecostandard.org/publications/no-time-to-waste-tackling-the-construction-sectors-waste-problem/

[7] ECOS article, ‘Ecodesign: The EU’s journey to sustainable products begins now’: https://ecostandard.org/news_events/ecodesign-eu-2025-sustainable-products/

[8] ECOS report, ‘Ensuring the right definition of low-carbon hydrogen’: https://ecostandard.org/news_events/ensuring-the-right-definition-of-low-carbon-hydrogen/

Contact

If you have questions, please contact me:

Alison Grace
Senior Press & Communications Manager at ECOS
alison.grace@ecostandard.org
+32 493 19 22 59

ECOS – Environmental Coalition on Standards is an international NGO with a network of members and experts advocating for environmentally friendly technical standards, policies, and laws.

ECOS is co-funded by the European Commission and EFTA Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or EISMEA. Neither the European Union nor the granting authority can be held responsible for them.

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