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Industrial Accelerator Act
In March 2026 the European Commission published its Industrial Accelerator Act (IAA) proposal, aimed at strengthening EU competitiveness and industrial resilience, especially in the context of strained trade relations, energy and defensive security circumstances. Overall, the IAA has the ambition to increase the percentage of industrial manufacturing in the Union’s GDP to 20% by 2030, up from the current 14%, focussing primarily on energy-intensive, cleantech and automotive sectors.
The IAA proposes measures around four pillars:
“Made in Europe” and low-carbon preferences in public procurement and public support: The proposal introduces 'Made in EU' and low-carbon preferences within public procurement and support schemes to strengthen the market for European industrial products. These measures refer to cement, aluminium, steel and net-zero technologies such as batteries, solar panels, wind turbines, electrolysers, heat pumps, and nuclear energy. For steel, the draft Act introduces targeted low-carbon preferences aimed at stimulating demand for cleaner industrial products, without attaching these preferences to the origin of the material. At the same time, strategic allocation of public funds will facilitate investment within the EU, improve access to low-carbon products, and reinforce competitive advantage.
Strengthening Foreign Direct Investments (FDIs): To help FDI boost EU supply chains, encourage technology transfer, avoid predatory acquisitions and foster quality employment, the Act proposes requirements for investments over EUR 100 million in emerging fields such as batteries, electric and fuel cells vehicles, photovoltaics, and critical raw materials. Member States' Investment Authorities will oversee and check that these conditions are met, while the Commission will coordinate their efforts.
Industrial Acceleration Areas: The Act recommends that Member States implement a unified permit-granting procedure, utilising a single application encompassing all necessary permits for industrial manufacturing initiatives. This framework would incorporate a digital ‘one-stop-shop’ with defined timelines and introduce the principle of tacit approval at interim stages of the permit process, specifically for energy-intensive decarbonisation projects.
Simplified permitting for industrial manufacturing: The proposal outlines criteria for Member States to designate industrial manufacturing acceleration areas, which aim to cluster industrial activities and foster favourable conditions for their development. These areas will align with other Union initiatives.
What’s in it for hydrogen?
The proposed Made in Europe concept is key for European hydrogen technologies, such as electrolysers. Strengthening domestic manufacturing capacity is a main building block towards industrial sovereignty, supply chain resilience and avoiding delocalisation. Countries that have a trade or customs agreement with the EU could be treated, for the purpose of Made in Europe requirements, on a comparable basis to entities operating within the Union. This point will be particularly important when assessing the origin of technologies, components and inputs used in projects benefiting from public support.
The proposal also extends Made in Europe requirements to the mobility sector, including fuel-cell vehicles. However, the current wording appears to go significantly beyond the approach taken for other hydrogen technologies, as it may cover not only the final vehicle, but also vehicle systems, engines and materials.
The draft legislation also introduces FDI-related measures intended to act as a defensive tool against predatory investments and strategic dependencies in clean technologies. However, hydrogen technologies do not currently appear to be included within the scope of these provisions.
The proposed low-carbon product requirements, such as the 25% low-carbon steel requirement in public infrastructure and automotive procurement from 2029 is an important first step towards the development of robust lead markets. The hydrogen industry will benefit from stable demand driven by low-carbon products, not least hydrogen-based steel or other industrial products.
Links to Legislation and additional information:
Industrial Accelerator Act Regulation
