Press Release
Brussels, 4 March
Today, the European Commission published the long-awaited Industrial Accelerator Act (IAA), a first important step towards creating a clean, resilient, and competitive industrial transition in Europe.
Europe is dealing with mounting geopolitical pressure, unfair trade practices, and a persistent lack of demand signals for strategic clean technologies and low-carbon products, including clean hydrogen. The IAA is a response to these issues but, while its measures point in the right direction, they require substantial improvement.
Jorgo Chatzimarkakis, CEO of Hydrogen Europe, said: “As the proposal enters the co-decision phase, we call on co-legislators to strengthen the Act and close the gaps on ambition, scope, and clarity. Europe must ensure that its industry can grow, compete, and lead globally in strategic clean technologies like hydrogen. Hydrogen Europe and its members stand ready to support policymakers to ensure the Industrial Accelerator Act delivers on its initial promises.”
Hydrogen Europe welcomes the focus on ‘Made in Europe’ for key hydrogen technologies such as electrolysers and fuel cells vehicles. Strengthening domestic manufacturing capacity is essential for industrial sovereignty, supply-chain resilience and avoiding delocalisation. However, the scope of requirements has been significantly reduced compared with earlier drafts of the IAA.
In the Act, the European Commission recognises that lead markets for Made-in-Europe low-carbon products are “indispensable” for a resilient and competitive economy. However, key provisions within do not sufficiently support this vision.
Strategic sectors such as hydrogen, its derivatives, fertilisers, and e-fuels receive limited direct benefits, mostly confined to permitting, while stronger demand-side measures are needed to create lead markets.
The sheer volume of secondary legislation (i.e., Delegated Acts) foreseen in the Act raises concerns on complexity and uncertainty.
Steel quotas in public procurement for buildings, vehicles and infrastructure are also key to providing demand certainty; however, the proposed 25% requirement will need to be raised to create a true lead market.
A clear label on low-carbon steel – based on a sliding scale approach – should underpin such ambition on lead markets. A sliding scale approach would help create demand for both primary and secondary steel, accounting for its carbon footprint and level of scrap recycling. But this has been delayed to later implementation under the Ecodesign framework, which gives industry and investors the wrong signal.
The identity of ‘Trusted Partners’ has been distinguished between procured products and technologies and auctionsIn procurement, they will be classified as “of Union origin” if originating from states with existing and recognised free trade areas or customs agreements with the EU – namely EFTA and CEFTA countries – as well as World Trade Organisation (WTO) parties to the General Procurement Agreement (GPA).
However, in auctions, it will only be considered “of Union origin” if the products originate from EFTA + Turkey, thereby excluding countries like Canada, Japan, the UK, the US, and South Korea from European auctions. This distinction adds further complexity to the future deployment of clean technologies in Europe.
Hydrogen Europe and its members now hope the co-legislators will take the chance to adjust the proposal and make sure the Clean Industrial Deal meets its stated ambitions.
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