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Making EU Factories Greener and Stronger
Published March 04, 2026
Goal: Boost EU manufacturing.
The EU’s Industrial Accelerator Act is a new law that fast‑tracks factory permits, forces public buyers to choose low‑carbon EU products, and vets big foreign investments so the region can grow jobs, stay competitive, and cut emissions.
The European Union is proposing a new regulation – the Industrial Accelerator Act – to speed up industrial capacity and decarbonisation in key sectors.
Why it matters
- The EU’s manufacturing sector is shrinking – it made 14.3 % of EU GDP in 2024, down from 17.4 % in 2000.
- Manufacturing also accounts for 18.3 % of EU employment and 26.2 % of EU greenhouse‑gas emissions.
- The Act aims to reverse this trend and raise the share of manufacturing to 20 % of GDP by 2035.
Main measures
| Measure | What it does | Key details |
|---|---|---|
| Fast‑track permitting | One‑stop digital application for all permits needed to build, expand or convert industrial sites, including energy‑intensive and net‑zero projects. | 45‑day acknowledgement, 30‑day decision, single access point using the European Business Wallet. |
| Lead markets | Public procurement and support schemes must buy products that are either (a) made in the EU or (b) low‑carbon. | Minimum 25 % low‑carbon steel, 5 % low‑carbon concrete, 25 % low‑carbon aluminium in construction and automotive. |
| Foreign‑investment rules | Investments over €100 million in sectors where a third country holds more than 40 % of global capacity must be approved. | Investors must meet at least 4 of 6 conditions: ownership limit, joint‑venture structure, IP licensing, R&D spend, workforce, sourcing. |
| Industrial acceleration areas | Member States designate zones that cluster projects in strategic sectors. | Baseline permit covers all common permits; projects only need additional, site‑specific permits. |
| Vehicle rules | New electric, hybrid and fuel‑cell vehicles bought or supported by the public must meet EU‑origin and low‑carbon criteria. | 70 % of non‑battery components must be EU‑made; battery cells must be EU‑made; 50 % of e‑powertrain and electronic systems must be EU‑made. |
| Monitoring and review | Commission evaluates the Act every 3 years and reviews its scope every 5 years. |
Impact assessment
- Net benefits of about €8 billion to the EU economy by 2030.
- Administrative savings of roughly €240 million from streamlined permitting.
- 6 full‑time EU staff and €20 k per section for the Single Digital Gateway Regulation, plus a €20 k one‑off for the digital backend.
Key numbers
- Manufacturing share: 14.3 % (2024) → 20 % (2035).
- Employment in manufacturing: 18.3 % of EU business employment.
- GHG emissions from manufacturing: 26.2 % of EU total.
- Aluminium demand expected to rise 33 % by 2050.
- FDI threshold: €100 million; third‑country share threshold: 40 %.
- Digital permitting system: 45‑day acknowledgement, 30‑day decision.
- Budget: 6 FTEs, €20 k per section, €20 k one‑off.
The Act is designed to make the EU’s industrial base more resilient, competitive and climate‑friendly by creating a single market for low‑carbon, EU‑made products, speeding up approvals, and ensuring foreign investment brings technology, jobs and value to the EU.
Licensing: The summaries on this page are available under Creative Commons Attribution 4.0 (CC BY 4.0).
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