On 26 February 2025, the European Commission presented a revolutionary and long-awaited document – the Clean Industrial Deal – a new EU strategy to strengthen the competitiveness of the European economy. It focuses on electrification and prioritises the increase of “green” production capacity.
Having felt its vulnerability to price fluctuations on the global energy resources market, as well as suffering from fierce global competition, European industry felt that it needed support. Therefore, the presented Clean Industrial Deal (the Deal) provides for concrete measures to turn the decarbonisation policy into a driving force for its growth and development. The measures concern, in particular, lowering energy prices, creating quality jobs and forming favourable conditions for doing business.
Thus, the objective of the Deal is to strengthen every stage of the production process, with particular attention to:
- energy-intensive sectors of the economy, such as the production of steel, metals and chemical products,
- the clean energy technology sector, which possesses a significant level of competitiveness and is an integral aspect of ensuring industrial transformation and decarbonisation, as well as
- the development of the circular economy, the aim of which is to reduce production waste and extend the life cycle of materials through the active implementation of best practices in recycling, reuse and sustainable production.
The main elements of the Deal
- Ensuring the availability of energy. That is, the accelerated deployment of clean energy and electrification, the completion of the integration of the internal energy market through physical cross-border interconnections, the more efficient use of energy and the reduction of dependence on fossil fuel imports. The implementation of this element is also regulated by a separate Action Plan for Affordable Energy.
- Stimulating demand for clean products. That is, the introduction and observance of sustainability and resilience criteria in the production of goods, as well as support for the “made in Europe” label during public and private procurement. For this purpose, in particular, the European Commission plans to revise the Public Procurement Framework in 2026.
- Financing the clean transition. That is, the adoption of new rules on state support and subsidies for renewables, the decarbonisation of industry and new production capacity; the strengthening of the Innovation Fund and the creation of an Industrial Decarbonisation Bank, which will be filled by the Fund, by revenues from the emissions trading system and by an updated InvestEU programme; the stimulation of scientific research and innovation through Horizon Europe, etc. All of this in order to mobilise more than €100 billion in support of clean production in the EU.
- Increasing access to and ensuring a more sustainable use of resources. That is, the creation of a mechanism for the joint ordering of critical materials in order to improve supply conditions; the establishment of an EU Critical Raw Materials Centre, responsible for joint procurement; the adoption of a Circular Economy Act in 2026, which envisages the use in the EU of at least 24% of production materials on circularity terms by 2030.
The role of wind energy for the Deal
Wind energy is Europe’s own (local), competitive and scalable resource. It is precisely this energy sector that offers unique opportunities to implement all aspects of the Deal and to satisfy the growing demand for electricity that is forecast up to 2040. For example, according to WindEurope data, for the chemical industry this demand will grow from 195 TWh in 2030 to 290 TWh in 2040, for the cement industry – from 32 TWh in 2030 to 76 TWh in 2040, and for the aluminium industry – from 70 TWh to 100 TWh respectively. Therefore, given the prospect of scaling and a rather high capacity utilisation factor – 1 GW of wind energy produces twice as much electricity as the equivalent capacity of solar – it is precisely wind energy that is capable of satisfying this demand. “If in the 2030s the EU maintains a stable level of wind generation deployment – 30 GW annually (of which 20 GW is onshore and 10 GW offshore)”, says WindEurope, – “then electricity production from wind will increase almost fourfold compared to today’s level, reaching 1,830 TWh by 2040”.
Global partnership
However, to implement the Deal, the EU needs reliable global partners. Therefore, in addition to expanding trade agreements, the European Commission also plans to launch Clean Trade and Investment Partnerships to diversify supply chains, to use trade defence mechanisms for the sake of economic security and to strengthen the Carbon Border Adjustment Mechanism (CBAM) to ensure fair pricing of CO₂ emissions in the production of energy-intensive products.
What does this mean for Ukraine?
The Clean Industrial Deal is an opportunity for Ukraine to integrate already into the new economic model of the EU, which offers more security and predictability. Ukraine has a unique chance to become an important partner in providing the EU with critical raw materials, “green” energy and clean technologies. Thanks to its resources, geographical location and industrial potential, Ukraine can join the European industrial transition and, accordingly, receive new investment. However, for this it is necessary to: accelerate the decarbonisation of industry by developing renewables; build up modern processing capacity; promote the development of national production of “green” technologies, in particular wind turbines and their components; as well as actively cooperate with the EU in the field of critical materials.
The Clean Industrial Deal: https://commission.europa.eu/topics/eu-competitiveness/clean-industrial-deal_en
