Brussels (February 26, 2025) — Today the European Commission unveiled a flagship policy package, the Clean Industrial Deal. The policy package sets out a plan to decarbonize and revitalize the EU’s traditional energy-intensive industries, while boosting the emerging clean-tech sector, to enable the EU’s industrial transition.

The package supports the EU’s proposed net 90% GHG emissions reduction by 2040, accelerates renewable energy deployment, targets new financing to scale clean technology, aims to create markets for clean products and strengthen emissions reporting, makes energy more affordable, prioritizes circularity and fosters international partnerships.

Following is a statement by Stientje van Veldhoven, Vice-President and Regional Director for Europe of World Resources Institute:

“While some backtrack on climate, the EU has sent a clear message that its economic competitiveness hinges on ensuring that its businesses are equipped to make the inevitable clean energy transition. This policy package largely sets the right priorities, yet it is also lacking in important aspects.

“The plan’s language on simplifying and possibly delaying the Carbon Border Adjustment Mechanism (CBAM) is concerning, as it opens the door to revisions and more uncertainty for companies. The EU should be a leader in creating a market for low-carbon and cleaner products, much like the EU Deforestation Regulation does for deforestation-free commodities.

“While the proposal rightly calls for rapid industry electrification, it falls short in addressing energy savings and resource efficiency as key measures. The EU should now provide more clarity on how it will reduce consumption of materials and energy to keep the industrial expansion within planetary boundaries. The same clarity is needed for how it will cut household energy bills by two-thirds by 2035 to address voters' concerns.

“The Commission’s proposal includes support for “social leasing” of clean and renewable energy products. However, if national fossil fuel subsidies persist, adoption may not follow. And the plan’s focus on circular economy leadership by 2030 is commendable, with steps toward coordinated raw materials purchasing and increased recycling and reusing, though it lacks concrete targets for resource use.

“The Commission’s announcement of mobilizing 100 billion Euros for clean manufacturing is a good step forward but its effectiveness will depend on the speed of such financial instruments and the ability to crowd in more funding. To overcome market barriers, the Commission rightly emphasizes how public and private procurement can drive a low-carbon industry by including strong sustainability criteria in EU contracts.

“The EU’s next step must be to release an ambitious new EU Climate Plan – or NDC – before the summer, setting an emissions reduction target of 70-75% for 2035, charting a path toward climate neutrality by 2050, and solidifying the EU’s global climate leadership.”