Industrial Accelerator Act: EU’s push for ‘Made in Europe’
The Industrial Accelerator Act is live, targeting a surge in EU industrial output while supporting the sector’s decarbonization.
Published on March 4, 2026
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Mauro swapped Sardinia for Eindhoven and has been an IO+ editor for 3 years. As a GREEN+ expert, he covers the energy transition with data-driven stories.
The European Commission has adopted the Industrial Accelerator Act (IAA), aiming at fostering Europe’s strategic autonomy by stimulating demand for local, low-carbon technologies. At the same time, it promises to support the sector’s decarbonization.
After weeks of delay, the IAA has finally seen the light. The law sets “made in Europe” thresholds for the manufacture of steel, cement, solar panels, wind turbines, or electric vehicles (EVs) to be eligible for public contracts or state support. Yet the bill excludes AI, semiconductors, and quantum computing from the list of technologies that must be sourced from European producers.
The bill is the centerpiece of the Clean Industrial Deal presented last year. Due to many disagreements inside the college of commissioners, the presented version is heavily revised, as the 100-page text underwent 44 more last-minute changes, reported Politico.
“From today, ‘Made of Europe’ is finally part of the EU’s doctrine, a change that was unthinkable a few months ago,” said Vice-President and Commission’s industry chief Stéphane Séjourné to reporters. “We want to increase our industrial output and produce green tech in Europe as well as avoid commodities such as steel and cement being offshored elsewhere.”
What is in the Industrial Accelerator Act?
The bill aims to increase the manufacturing share of the EU gross domestic product (GDP) to 20% by 2035—latest estimates show manufacturing accounted for 14.3% of EU GDP.
The document lists technologies essential to the EU’s net-zero production plan. Among them are solar panels, EVs, battery storage, wind turbines, hydrogen electrolyzers, and nuclear fission. European manufacturers of these technologies face fierce competition—chiefly from China. By setting local content standards, the Commission hopes to reinforce its market.
Who is a trusted partner?
In light of the geopolitical tensions, much of the reporters’ attention focused on which countries are considered “trusted partners,” countries whose products could fit in the IAA.
Séjourné explained that the Commission will conduct reciprocity assessments of the existing trade agreements. Supply chains, dependencies, and security will be scrutinized. “I am not going to say who is and who is not. A discussion is ongoing, and there is no point in drawing a list now,” he stated.
Rules on foreign investment
The IAA sets conditions for foreign investments in strategic sectors exceeding €100 million in which a single third country controls 40% of global manufacturing capacity. The Commission’s vice-president underscored that these projects need to add value to Europe.
At the same time, they should guarantee a minimum of 50% European employment, ensuring business and citizens benefit from them. Each investment must comply with at least four of the six criteria listed by the Commission—the employment one is compulsory.
A watered-down regulation
Over the past months, the commissioner has pushed for an interventionist industrial policy. An IAA draft circulated in January put forward more ambitious regulations. For instance, restrictions on foreign investments, norms inspired by China’s joint-venture policies, and strict requirements in public procurement.
However, the text has been boiled down in the past weeks. Germany, in particular, has pushed against the new regulation. Berlin’s economy minister, Katherina Reiche, called the Act a “regulatory wasteland nobody can understand anymore.”
Among the points that vanished from the earlier draft proposals is the green label for steel. It would have shown the carbon intensity of individual steel manufacturers. A broader low-carbon label for industrial products is expected to come later.
Divergencies to be overcome
Many of the disagreements that arose during the finalization of the text stemmed from the text’s nature, which diverges from Europe’s traditional open-market approach. Member states, including Germany, Ireland, and Finland, advocated that the ‘Made in Europe’ plans would further disrupt trade with China and the United States.
The Act will now be negotiated by the European Parliament and the EU Council before entering into force. Critics suggest that the IAA will undergo a deep revision before the Council’s revision.