The European Commission has presented a law on industrial accelerators

Among other things, the document introduces targeted and proportionate requirements for the «Made in the EU» program

On March 4, the European Commission (EC) presented a legislative proposal to increase demand for low-carbon technologies and products manufactured in Europe – the Industrial Accelerator Act (IAA). This is stated in the institution’s announcement.

The IAA introduces targeted and proportionate requirements for the «Made in the EU» program and low-carbon requirements for public procurement and state aid schemes. They will apply to specific strategic sectors, in particular steel, cement, aluminum production, the automotive industry, and zero-emission technologies. With regard to steel, the EC proposes specific preferences to create market demand. For example, low carbon emission requirements are being introduced for metal products used in automotive and construction. At the same time, the document creates a framework that can be extended to other energy-intensive sectors, such as the chemical industry.

The Industrial Accelerator Act aims to increase the share of industrial production in the bloc’s GDP to 20% by 2035, compared to 14% currently.

The proposal encourages greater reciprocity in public procurement, ensuring equal treatment for countries that give EU companies access to their markets.

Products supplied by partners with whom the bloc has concluded an agreement on the establishment of a free trade area or customs union, or who are parties to the WTO Agreement on Government Procurement, and where there are corresponding EU obligations, will be considered in the calculations as originating in the European Union. With regard to other measures, in particular government schemes and auctions, partners may be included in the scope of the IAA if they have a free trade agreement or customs union with the EU.

As noted by European Commissioner for Industrial Strategy Stéphane Séjourné, many EU partners practice national preferences.

«Therefore, we expect integration into their markets so that they can be integrated into ours. We will exclude, by means of a delegated act, those who do not play by the rules or who pose a risk to our economic security,» he explained.

The IAA sets conditions for large investments in strategic sectors exceeding €100 million for third countries where one country has a global market share of more than 40% in the relevant sector. Such investments must create high-quality jobs, stimulate innovation and growth, and generate real value in the EU through technology and knowledge transfer, while complying with local content requirements. They must also guarantee a minimum level of 50% employment for Europeans. The participation of foreign companies is limited to 49% of the capital.

Earlier, representatives of the European steel industry stated that EU provisions giving priority to the use of locally produced materials should include steel. It is noted that “local” should be understood to mean only the bloc’s close neighbors.