Industrial Accelerator Act (IAA)

Europe’s new Industrial Accelerator Act (IAA) is an important step toward strengthening industrial competitiveness while accelerating decarbonization.

Public procurement represents around 15% of EU GDP, making it a powerful tool to stimulate demand for low-carbon industrial products – including hydrogen-based solutions in sectors like steel, chemicals, and transport.

The spirit of the proposal is right:

🔹 Public procurement leveraged to help scale clean technologies that boost security and diversification
🔹 Greenhouse-gas emissions intensity used as the benchmark for defining performance classes for industrial products, promoting decarbonization of primary steel

⚠️ At the same time, the IAA falls short of the level of ambition required.

For hydrogen and other clean technologies to scale, strong and predictable demand signals are essential. Current compliance thresholds proposed for clean products in procurement and auctions are too low to unlock the investment needed for industrial transformation.

As the global race for clean industrial leadership intensifies, Europe has an opportunity to strengthen its framework by:

➡️ Raising ambition on demand creation 📊
➡️ Fast-tracking development of GHG emissions assessment methodologies for clean products 📝
➡️ Supporting strategic partnerships and resilient supply chains 🤝

Clear policy signals can help accelerate investment, strengthen Europe’s industrial base, and reinforce its security of supply and diversification.