February 27, 2025 14:55
At the European Industry Summit 2025, European Commission President Ursula von der Leyen introduced the Clean Industrial Deal, a plan that seeks to align Brussels’ long-standing environmental principles with the increasingly pressing concerns over the declining competitiveness of the manufacturing sector.
The industry is grappling with significant structural difficulties, from high energy costs and declining demand to excessive bureaucracy and a slowdown in investment—challenges that, in some sectors, such as automotive, are putting companies' very survival at risk.
Acknowledging the situation and the concerns expressed in recent months by business associations across Europe—culminating in the Antwerp Declaration—von der Leyen explained: “Europe is not only a continent of industrial innovation, but also a continent of industrial production.” She added, “However, the demand for clean products has slowed down, and some investments have moved to other regions. We know that too many obstacles still stand in the way of our European companies, from high energy prices to excessive regulatory burden.” Hence, “the Clean Industrial Deal is to cut the ties that still hold our companies back and make a clear business case for Europe.”
In essence, the plan focuses on decarbonization, reindustrialization and innovation, working through two main levers: supporting energy-intensive industries and promoting clean technologies, key tools to ensure future competitiveness and drive industrial transformation. This also includes greater regulatory simplification, accelerating approvals for industrial decarbonization projects, and improving coordination between EU and national policies to reduce bureaucracy.
In this context, the Commission has committed to presenting an action plan for the automotive industry in March, followed by one for steel and metals in the spring, along with measures for the chemical sector and clean tech industry. Additionally, the Commission has adopted the Affordable Energy Plan, aimed at reducing energy bills for industries, businesses and households.
To support such an ambitious initiative, the Commission aims to mobilize over €100 billion to fund clean industrial production in the EU, including an additional €1 billion in guarantees within the current Multiannual Financial Framework.
Among the upcoming initiatives is the Circular Economy Act, set for adoption in 2026, which will accelerate the circular transition and reduce dependence on non-EU markets. The ambitious goal is to reach 24% circular materials by 2030.
CEFIC. Among the first to comment on the initiative was Cefic, the European Chemical Industry Association. Noting that nine out of 10 demands from the Antwerp Declaration are now being addressed in the Clean Industrial Deal, Ilham Kadri, president of ICCA and Cefic and CEO of Syensqo, urged Brussels to turn ambition into action.
“Every day, Europe is falling behind its goals and is losing quality jobs for our current and future generations of workers,” Kadri emphasized. “In such turbulent times, strong action from European leadership is needed.”
“We need a realistic timeline for implementing the remaining measures,” added Marco Mensink, director general of Cefic. “When we say actions, we mean action, not strategies, policies or plans. Leave no stone unturned and break all taboos. We need the situation to change.”
Cefic proposed a simple test to evaluate the effectiveness of EU measures: “We ask that all new EU initiatives be assessed according to the following criteria: Do they ensure Europe’s security and independence? Do they lower energy prices? Do they reduce administrative burdens for businesses? Do they attract investment to Europe? Do they create markets for sustainable products? Do they protect quality jobs in Europe?” If the answer to any of these questions is “no,” the association stated, EU policymakers should review and revise the proposal accordingly.
PLASTICSEUROPE. The association representing european plastic converters also welcomed the Clean Industrial Deal but criticized the lack of attention given to the plastics sector and the absence of urgency in the plan.
The association considers this urgency crucial to restoring the competitiveness of Europe’s plastics industry and ensuring that the sector’s transition toward climate neutrality and circularity stays on track.
“Investment decisions taken in the next two years will determine whether and how quickly we can fulfill the ambitions set out in the EU’s Green Deal and our Plastics Transition Roadmap,” said Virginia Janssens, managing director of Plastics Europe. “The window of opportunity to address the competitive challenges facing our industry and create a more favorable investment climate is rapidly closing.”
Plastics Europe supports measures such as the Circular Economy Act, which will help establish a single market for waste, recycled materials, bio-based plastics and low-carbon plastics. However, the association warns that simply creating a single market is not enough—it must also be protected from fragmentation.
The association is calling on the European Commission to use its coordination powers to develop a dedicated Action plan on the future of the European plastics sector, bringing together EU institutions, member states and all relevant partners in the plastics ecosystem.
It is also urging Brussels to ensure that plastics are considered in all sectoral initiatives, innovation funding and measures to ensure EU supplies of key materials.
“Europe has an opportunity to establish the world’s first circular and net-zero plastics system,” Plastics Europe stated. “Therefore, we fully support the Clean Industrial Deal’s recognition that competitiveness and sustainability policies must be mutually reinforcing. Our industry cannot deliver on our net-zero and circularity ambitions unless we are competitive enough to invest. Sadly, there is a real danger that the competitiveness benefits the Clean Industrial Deal delivers will be realized far too late. Time is not on our side.”
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