EU's Industrial Accelerator Act faces major revisions amid trade and political pressures
The European Union's Industrial Accelerator Act (IAA) has undergone major revisions after months of delays and political pressure. Originally designed as the centrepiece of the Clean Industrial Deal, the plan now reflects compromises with industry lobbyists and trading partners. EU industry chief Stéphane Séjourné unveiled the latest version, aiming to balance decarbonisation goals with economic concerns.
The IAA was first proposed to accelerate industrial decarbonisation and support traditional manufacturing. Early drafts included strict regulations, but later versions scaled back ambitions due to resistance. The EU's trade department and countries like Germany pushed for fewer restrictions, fearing excessive red tape.
A key feature of the revised act is the 'Made in Europe' provision, which directs public funds to EU-based companies through procurement contracts. This rule is expected to influence other industrial laws across the bloc. However, the status of trusted partners—such as the UK or Switzerland—remains undefined, leaving third countries in limbo.
One notable change was the removal of a voluntary green label for steel, dropped to avoid clashes with existing legislation. Meanwhile, the automotive sector successfully lobbied to weaken CO₂ targets, though flexibility now comes with conditions favouring European suppliers.
External pressure also shaped the IAA's final form. In early 2025, the US under Donald Trump imposed tariffs on EU steel and aluminium, threatening further duties on tech exports. This forced the EU to pause trade talks with India and Mercosur nations, prioritising negotiations with Washington between January and June 2025.
The revised IAA reflects a delicate balance between environmental goals and economic realities. Séjourné's plan seeks to restore credibility after facing criticism from commissioners, member states, and international partners. The act's success will depend on its ability to navigate ongoing trade tensions and industry demands.
