The European Commission has released a statement regarding the initial proposals for the clean industrial deal, just months after their introduction.
As the EU navigates its path towards ensuring competitiveness and decarbonization, its implementation remains critical for achieving the climate goals set for 2040.
Today’s announcement provides an overview of the first wave of actions taken, the progress made, and the remaining measures. A key component of these actions is the state aid framework for the clean industrial deal, which was approved last week to support investments in the transition to clean energy.
Additionally, there has been an agreement to streamline the Carbon Border Adjustment Mechanism (CBAM) by exempting 90% of importers, thereby reducing bureaucracy and ensuring smoother implementation.
This simplification represents a preliminary step before a more comprehensive review of the carbon border adjustment mechanism at the end of the year, which will include legislative proposals aimed at strengthening the mechanism.
The statement also outlined the Commission’s analysis results regarding potential solutions to mitigate carbon leakage from exports.
In conjunction with the state aid framework and the new statement, the Commission has also issued recommendations on tax incentives to promote investments in clean technologies and the decarbonization of industry. These measures include accelerated depreciation and tax exemptions, along with guidance documents to enhance the use of new EU rules related to renewable energy, aimed at expanding renewable energy sources and reducing energy costs.
Among the actions that will contribute to the clean industrial deal are affordable energy measures to boost the manufacturing of grid components, support for power purchase agreements, the upcoming industrial carbon removal bank pilot project, the forthcoming chemicals industry action plan, and sectoral dialogues with stakeholders.
Proposals for the next multiannual financial framework are expected to be announced later this month, which will also define how the EU budget will support the clean transition.