Tööstuse kiirendamise õigusakt

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EUROPEAN COMMISSION

Brussels, 4.3.2026

COM(2026) 100 final

2026/0068 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

establishing a framework of measures for the acceleration of industrial capacity and

decarbonisation in strategic sectors and amending Regulations (EU) 2018/1724,

(EU) 2024/1735 and (EU) 2024/3110

{SEC(2026) 70 final} - {SWD(2026) 70 final} - {SWD(2026) 71 final} -

{SWD(2026) 72 final}

(Text with EEA relevance)

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EXPLANATORY MEMORANDUM

1. CONTEXT OF THE PROPOSAL

• Reasons for and objectives of the proposal

This explanatory memorandum accompanies the proposal for a Regulation establishing a

framework of measures for the acceleration of industrial capacity and decarbonisation in

strategic sectors: the ‘Industrial Accelerator Act’.

In today’s geopolitical landscape, the frequent and targeted use of economic tools to advance

strategic objectives poses a serious threat to the Union’s resilience, competitiveness,

economic security and strategic autonomy. As highlighted in the Draghi report on European

Competitiveness, the weaponisation of EU dependencies of trading partners in strategic

sectors puts the EU’s security, competitiveness and economy at risk.1 The Union’s capacity to

respond and reduce third country dependencies lies in the strength of its industrial base,

innovation capacity and integrity of the Single Market.

The transition to a clean and digital economy presents a major opportunity to strengthen the

EU’s industrial base, as outlined, inter alia, in the Commission Communication on Clean

Industrial Deal2. Global competition, rapid technological change, structural cost

disadvantages, unfair global market distortions such as the increasing use of foreign subsidies

to create a competitive edge, and the weaponisation of economic dependencies are reshaping

global value chains. At the same time, rising geopolitical tensions are intensifying existing

vulnerabilities and creating new ones. Against this backdrop, the EU must act strategically to

secure and further strengthen its resilience and industrial base, long-term competitiveness and

ensure that the climate transition becomes an engine of industrial growth.

The manufacturing sector is essential for safeguarding and boosting the EU’s long-term

economic resilience and to meet its climate neutrality goal. In 2024, it accounted for 18.3% of

employment in the EU business economy3 and 14,3% of the EU’s total GDP,4 while

generating 26,2% of EU’s greenhouse gas emissions5. Despite its continued economic

importance, the sector’s share of GDP has declined over the past decades from 17.4% in 2000

to its current level of 14,3%6. This regression is not only an economic reality, but a strategic

warning signal with potentially structural impacts to the EU’s prosperity and social cohesion.

At the same time, the manufacturing sector increasingly faces challenges, such as high energy

prices, global overcapacities, high capital and operational costs for decarbonisation and new

technology deployment, low investment compared to other regions, as well as regulatory

hurdles7.

1 Joint Communication, Strengthening EU economic security, JOIN(2025) 977 final. 2 Communication from the Commission to the European Parliament, the Council, the European

Economic and Social Committee and the Committee of the Regions, The Clean Industrial Deal: A joint

roadmap for competitiveness and decarbonisation (COM/2025/85 final, 26.2.2025). 3 Eurostat, Enterprises by detailed NACE Rev. 2 activity and special aggregates

[sbs_ovw_act__custom_20259000], last updated 08 December 2025, DOI: 10.2908/sbs_ovw_act. 4 Eurostat, Gross value added and income by main industry (NACE Rev.2 )

[nama_10_a10__custom_20259318], last updated 20 February 2026, DOI: 10.2908/nama_10_a10. 5 Eurostat, Air emissions accounts by NACE Rev. 2 activity [env_ac_ainah_r2__custom_20259376], last

updated 28 November 2025, DOI: 10.2908/env_ac_ainah_r2. 6 Eurostat, Gross value added and income by main industry (NACE Rev.2 )

[nama_10_a10__custom_20259318], last updated 20 February 2026, DOI: 10.2908/nama_10_a10. 7 Draghi, M. (2024). The future of European competitiveness – In-depth analysis and recommendations

(Part B).

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That is why the Industrial Accelerator Act aims to ensure that by 2035, this trend is reversed

and that manufacturing represents 20% of the EU GDP. It will do so by accelerating

permitting for all manufacturing projects, and by providing a toolbox to provide access to the

European single market in a way that prevents strategic dependencies, creates manufacturing

jobs, boosts decarbonisation and climate performance and secure access of European citizens

and companies to vital commodities and products at all times.

Achieving the EU’s strategic autonomy while maintaining industrial competitiveness and, at

the same time, decarbonising requires a strong business case. In that context, strengthening

the competitiveness of certain strategic sectors and technologies, notably net-zero

technologies as well as energy-intensive industries, and the automotive supply chain, is

essential for the EU’s resilience, strategic autonomy and climate objectives. A failure to

secure and diversify crucial supply chains would create significant economic and societal

risks, leading to potential disruption of public order in the Union. Reducing external

vulnerabilities could contribute to strengthening our economy, boosting investments and

supporting the business case for the ongoing deep industrial transformation process.

The sectors covered by the Industrial Accelerator Act – in particular energy-intensive

industries, net-zero technologies manufacturing, and automotive industry – account for a

limited share of EU manufacturing output but play a disproportionate strategic role. Taken

together, the strategic sectors targeted by the Industrial Accelerator Act account for

around 15% of EU manufacturing production. Their importance therefore lies less in their

aggregate size than in their central role as upstream suppliers and enablers of downstream

industrial ecosystems, including construction, mobility, energy as well as space and defence.

Delayed or insufficient progress on climate action could intensify the economic and social

impacts of climate change, with implications for social stability. Action is especially needed

in the following sectors:

Energy-intensive industries (EIIs) are a key pillar of European prosperity and a cornerstone

of the continent’s industrial base, underpinning most industrial ecosystems. Yet, production

volumes in EIIs have substantially decreased since 2021, compared to other manufacturing

sectors8. Cost gaps with other world regions have widened and import shares have increased,

in particular for basic metals and chemicals9. Capacity utilisation rates remain at

unsustainably low levels10. Decarbonising these industries requires substantial investments11,

however, the pace of decarbonisation is not fast enough to reach the EU climate objectives.

Although many decarbonisation projects have been announced and some are on the way,

since 2023 more than half of the projects remain unimplemented12. Modernising these sectors

is fundamental not only to achieving our climate objectives, but also for Europe’s ability to

anchor industrial value chains and provide high- quality jobs. Among energy-intensive

industries, steel and cement are the largest emitters, while the chemical industry is the third-

largest contributor to the EU GHG emissions. Aluminium is also highly electro-intensive and

is recognised as a strategic raw material, with demand expected to increase by 33 % until

8 Internal European Commission analysis, see Impact Assessment report. 9 OECD Working Papers, A comprehensive overview of the Energy Intensive Industries ecosystem,

2025/09. 10 A European Steel and Metals Action Plan, COM (2025) 125 final, 19 March 2025. 11 Approximately EUR 500 billion are needed by 2040 for the chemicals, basic metals, non-metallic

minerals and pulp and paper industries - Draghi, M. (2024). The future of European competitiveness –

In-depth analysis and recommendations (Part B), p. 99 and Commission Staff Working Document,

Impact assessment report, Europe’s 2040 climate target and path to climate neutrality by 2050 building

a sustainable, just and prosperous society, Part 3, pp.164-167. 12 JRC analysis, see Impact Assessment report.

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2050. At the same time, these industries have lost significant EU’s market share in the past

decade. In view of their high emissions intensity and strategic role for the clean and digital

transition, these sectors are considered priority to establish demand-side measures. They are

also characterised by a limited cost impact on downstream industries.

Net-zero technologies face competitiveness challenges and significant supply chain

vulnerabilities13. While deployment in the EU – and the world - is progressing, the EU’s

manufacturing global market share of these technologies is declining. Production is highly

concentrated in China, which accounts for over 80 % of battery manufacturing capacity and

solar photovoltaic, including solar inverters which carry an essential function in the Union’s

critical infrastructure. In other net zero technologies, such as heat pumps and geothermal, EU

production depends heavily on components from non-EU suppliers. Wind power technologies

are experiencing cost pressures from low-priced Chinese imports, while carbon capture

technologies lag in CO2 transport and storage. Without decisive action, the EU risks

becoming even more dependent on imported clean technologies, precisely at the moment

when global partners are accelerating their industrial strategies14 and weaponising their

industrial strengths. At the same time, net-zero technologies are a source of EU’s industrial

strength and should be granted a global level-playing field in light of unfairly subsidised

overcapacities by third countries.

Downstream industries are also under pressure. The competitiveness of the European

automotive industry – a symbol of Union industrial leadership - has significantly decreased,

with the average profitability of European automotive suppliers dropping from 7.4 % in 2017

to 5 % in 2023 and more than 100,000 job cuts announced in 2024/2515. Recent surveys show

that half of the European automotive component suppliers plan to reduce production capacity

in the EU in the next years. This decline threatens hundreds of thousands of jobs and the

integrity of Europe’s industrial future.

Against this backdrop, the proposal addresses three main sub-problems:

(1) Supply chain vulnerabilities in strategic sectors and technologies. Global, not always

fair, competition and international value chain dependencies undermine Europe’s

ability to increase or retain production in strategic sectors and technologies. An area

of concern is the lack of technology know-how and manufacturing expertise in the

EU for certain key net-zero and digital technologies. This concern is exacerbated by

a fragmented EU approach towards foreign investments, which oftentimes do not

come with technology transfer, job creation and value chain integration in the EU.

(2) Limited demand/no lead markets for European low-carbon industrial products. High

production costs, different levels of technological readiness and a lack of industrial

scaling effects limit the development and market uptake of low-carbon products in

energy-intensive industries, therefore undermining or delaying the decarbonisation

investments. This is further accentuated by the challenges in distinguishing low-

carbon industrial products from high-carbon equivalents and the limited willingness

of downstream sectors to pay a low-carbon premium.

(3) Industrial technologies are not deployed at scale. Lengthy, fragmented and uncertain

permitting procedures for industrial decarbonisation projects, including infrastructure

connection, delay the deployment and scale-up of new technologies. Decarbonising

13 Competitiveness Progress Report on Clean Energy Technologies, COM(2025) 74 final, 26 February

2025. 14 BloombergNEF, New Energy Outlook. 15 European automotive industry: What it takes to regain competitiveness, McKinsey, 10 March 2025.

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industrial processes requires deep and costly transformation of assets and operations,

entailing substantial investments, which may become frozen throughout lengthy

permitting processes. Difficulties in de-risking investment and accessing funding

represent a major bottleneck.

Against this scenario, the Clean Industrial Deal announced a new regulatory initiative to

address permitting bottlenecks, introduce resilience and sustainability criteria, and create lead

markets for European clean and resilient industrial products and technologies.

This proposal delivers on the political commitment made by President von der Leyen, who

announced in the 2025 State of the Union Address an Industrial Accelerator Act (IAA) to

boost demand for clean and Made in EU products in strategic sectors and technologies. It is

also announced in the European Economic Strategy Communication of 3 December 2025.

The legislative proposal aims to strengthen the EU’s long-term economic resilience,

prosperity and strategic autonomy by supporting industrial production and accelerating

decarbonisation. It has the following objectives:

• Leverage access to and the scale of the Single Market to boost demand for European

low-carbon industrial products and net-zero technologies, including by facilitating

differentiation for low-carbon steel to increase its value and marketability.

• Maximise the quality and benefits for the Single Market of foreign investment in the

EU in the most strategic sectors.

• Deploy manufacturing projects at scale by speeding-up and simplifying permits for

manufacturing projects, as well as by facilitating the development of industrial

clusters in industrial manufacturing acceleration areas (‘acceleration areas’).

To achieve these objectives, the proposal introduces a balanced regulatory approach to

enhance the competitiveness of the industry and mitigate, as well as prevent, strategic

dependencies in key sectors. It is limited to the set of minimum requirements necessary to

address the problems currently faced by a selected number of strategic sectors, without unduly

constraining the market and technological development or disproportionately increasing the

cost of specific materials and products. Moreover, the proposal sets a framework to streamline

permitting procedures and promote a coordinated approach to investment projects across the

Union.

• Consistency with existing policy provisions in the policy area

The proposal responds to the Clean Industrial Deal, the ‘Competitiveness Compass for the

EU’ and the Joint Communication on Strengthening EU Economic Security, all of which

acknowledge the need for urgent action to safeguard the EU’s future as an economic

powerhouse, an investment destination and a manufacturing centre. It delivers on the

Automotive Action Plan, which states that public support benefiting the automotive industry

will be made conditional on resilience and sustainability criteria and calls on the Industrial

Accelerator Act to promote Made in EU requirements on battery cells and components in EVs

sold in the EU, in line with the Union’s international commitments.

It also delivers on the Automotive package, adopted on 16 December 2025, which, inter alia,

provides for the granting of super-credits for small affordable electric vehicles made in the

Union prior to 2035 and amends the 2035 emissions reduction target, with the remaining

emissions to be compensated through the use of low-carbon steel made in the Union or

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renewable and low-carbon fuels. This proposal16, which amends Regulation (EU) 2019/631,

empowers the Commission to adopt delegated laying down the criteria under which products

within its scope may qualify as ‘small zero-emission vehicles made in the Union’ or ‘low-

carbon steel made in the Union’. The Automotive package also includes a proposal for a

Regulation on clean corporate vehicles17. This proposal limits financial support for corporate

vehicles to zero- and low-emissions corporate vehicles and empowers the Commission to

adopt delegated acts setting out the methodology for determining the criteria for ’made in the

European Union’. To ensure coherence across the three instruments and legal certainty, this

Regulation provides harmonised definitions of ‘small affordable electric vehicles made in the

Union’ ‘low-carbon steel made in the Union’ and ‘corporate cars and vans made in the

European Union’. Accordingly, the proposals of 16 December 2025 should be adapted to refer

to the horizontal approach adopted in this Regulation, rather than to delegated acts, in order to

ensure consistency of the legal framework.

This Regulation is consistent with the Union Customs Code, which lays down the Union’s

non-preferential rules of origin. For the purposes of determining the origin of products

covered by this Regulation, the Union’s non-preferential rules of origin, as established under

that Code, apply.

• Consistency with other Union policies

The IAA contributes to the legislation relevant for EU economic security, industrial

competitiveness and decarbonisation. Given the role of energy-intensive industries and net-

zero technologies in many sectors of the economy and industrial value chains, several sets of

European policies and legislation are relevant.

First, the IAA is consistent with and complements the Net Zero Industry Act (NZIA) by

extending streamlined permitting provisions, such as single points of contact and time limits

to all energy-intensive industrial decarbonisation projects, and by introducing Made in EU

requirements for some specific net-zero technologies components, in order to prevent

circumvention, further build EU manufacturing capacity as well as resilient and competitive

domestic value chains.

Second, the proposal is consistent with the European Climate Law, as it aims to contribute to

achieving the climate neutrality goal by supporting investments in the decarbonisation of

industry and in net-zero technologies.

Third, the proposal is consistent with the most recent initiatives to streamline permitting

procedures and enhance the competitiveness of the automotive sector. In particular, the IAA

aims to streamline key permitting processes, notably through digitalisation and the reuse of

data. It builds on the menu of measures made available under the Environmental Permitting

proposal, applying it to the specific needs of the sector.

The proposal is also consistent with other EU legislation aimed at supporting the

transformation of the European industry to a clean, circular and climate neutral economy. For

example, the IAA is consistent with and complements forthcoming product-specific

environmental legislation. In the construction sector, it complements the Construction

Products Regulation (CPR), including the harmonised standard for GHG emissions and the

planned low-carbon concrete label. In the steel sector, the forthcoming delegated act on steel

products under the Ecodesign for Sustainable Products Regulation (ESPR) will provide the

16 Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU)

2019/631 as regards CO2 emission performance standards for new light duty vehicles and vehicle

labelling and repealing Directive 1999/94/EC. 17 Proposal for a Regulation of the European Parliament and of the Council on clean corporate vehicles.

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necessary elements to implement the lead market provisions for steel taking into account the

differing decarbonisation characteristics of primary and secondary steel producers and

rewarding circularity. In designing labelling and information requirements based on

performance thresholds for different products, such thresholds should take account of the

recycled content of the industrial product, the threshold decreasing with the increase of

recycled content in the products, where relevant. Similarly, the IAA complements the

Batteries Regulation, which sets the framework for environmental ambition for EU battery

manufacturing, allowing lead market provisions under the Accelerator Act to focus on Made

in EU requirements. It complements the upcoming environmental performance rules for PV

modules under the Ecodesign and Energy Labelling by promoting EU manufacturing of

compliant products. In terms of boosting low-carbon and bio-based solutions it aligns with the

new EU Bioeconomy Strategy.

The proposal is also consistent with the rest of the EU climate legislation. The EU Emission

Trading System (EU ETS) is the main climate policy instrument to reduce GHG emissions

and plays a central role in incentivising emission reductions in energy-intensive industries as

well as power generation. This proposal complements the price signal provided by the EU

ETS, supporting the creation of lead markets for low-carbon industrial products. It is also

aligned with the Carbon Border Adjustment Mechanism Regulation (CBAM).

In terms of upcoming initiatives, the Circular Economy Act proposal will complement the

IAA by boosting recycling and access to secondary raw materials, reducing dependencies and

vulnerabilities also for energy-intensive industrial products. Consistency between the sector

specific measures in the Accelerator Act and the overarching framework of the upcoming

Public Procurement revision will also be ensured.

The proposal takes into account the Union’s international commitments in public procurement

under the WTO Agreement on Government Procurement (GPA), and relevant bilateral EU

trade agreements. Operators established in countries covered by such commitments can

benefit from enforceable access to specific procurement procedures defined in the relevant

coverage schedules. These commitments are structured across categories of contracting

authorities, including central government, sub-central authorities, bodies governed by public

law and utilities, and across procurement types such as goods, services and construction

works. Their applicability therefore depends on the contracting authority conducting the

procurement and the subject matter of the contract. Besides, the Union retains the right to

apply general or security exceptions.

As a result, the Union’s procurement commitments do not confer uniform or comprehensive

access to all partners, and it is not possible to establish a single list of third countries with

fully secured access to the entire EU procurement market. Detailed information on

procurement commitments and supplier eligibility is available to contracting authorities18,

which supports the consistent application of international procurement obligations while

preserving the Union’s ability to pursue its policy objectives as set out in this proposal.

While the IAA establishes the framework for what ‘Made in Europe’ procurement entails,

covering energy-intensive industrial products, net-zero technologies and automotive

components, the forthcoming revision of the public procurement legal framework will clarify

how such procurement is to be carried out. In particular, it will integrate and implement

sector-specific requirements set out in relevant legislative acts within a common procurement

18 Detailed information is available through the European Commission’s “Procurement for Buyers” tool

on the Access2Markets portal and will help EU contracting entities to find out which bidders are

eligible to participate in public procurement procedures in EU member states, based on the provisions

of the WTO Agreement on Government Procurement (GPA) and bilateral EU trade agreements.

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framework and, for key sectors, provide contracting authorities with clear tools to give

preference to tenders composed mainly of European products. This approach ensures

coherence and legal certainty for both public buyers and economic operators.

The proposed Regulation also takes account of the Union’s trade defence instruments,

including the recently proposed measure addressing the negative effects of global

overcapacity on the EU steel market. In addition, it operates in complementarity to the

existing Foreign Direct Investment framework, which is about security and public order.

Finally, the proposal is without prejudice to the application of the EU’s competition rules.

2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

• Legal basis

The appropriate legal basis is Article 114 of the Treaty on the Functioning of the European

Union (‘the Treaty’) which allows the Union to adopt harmonisation measures. Given the

complexity and transnational character of resilience and industrial decarbonisation, such

measures are needed to ensure the proper functioning of the Single Market in particular for

strategic sectors.

Moreover, it is also necessary to use Article 207 of the Treaty on the EU common commercial

policy as an additional legal basis regarding certain measures introduced under this

Regulation. Provisions on foreign investments capture a specific set of sectors to ensure

minimum investment conditions, and value-added production in the Union. Therefore, the

provisions are primarily aimed at the proper functioning of the Single Market. Nevertheless,

foreign direct investments are explicitly included in the scope of the EU common commercial

policy.

• Subsidiarity (for non-exclusive competence)

Competitiveness, sustainable prosperity, economic security and decarbonisation are matters of

high EU relevance. No single Member State alone is capable of effectively addressing

industrial decarbonisation due to the integrated nature of the challenge: energy markets,

climate change mitigation efforts and the need for the proper functioning of the Single Market

for energy-intensive industrial products and net-zero technologies. The competitiveness

challenges currently facing industry are likely to prompt Member States to implement

unilateral measures. While such efforts may be justified, leaving them uncoordinated risks

negatively impacting the functioning of and fragmenting the Single Market, making the EU

more vulnerable to external shocks and unable to leverage the assets of the Single Market to

deliver benefits to local and European ecosystems.

A harmonised EU-level approach is therefore necessary under Article 114 TFEU to ensure the

well-functioning of the Single Market and to address the challenges of resilience and

industrial decarbonisation, while safeguarding the EU’s competitiveness. The measures

included in this initiative would not be as effective (if at all) if implemented by Member

States acting alone, as the challenges they address concern the Single Market. They are not

limited to individual Member States or to a subset of Member States, but they relate to the EU

industrial base and EU-wide value chains. In addition, measures implemented at Member

States’ level only are unlikely to adequately meet the needs of closely interconnected supply

chains within the Single Market and could lead to further market fragmentation and risks of

supply chain disruption.

Furthermore, climate change is a trans-boundary challenge requiring both international and

EU-level action to effectively complement and reinforce measures taken at regional, national

and local levels. The cost of inaction is pan-European. The necessary industrial

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transformation will impact many sectors across the EU economy, making coordinated action

at the EU-level indispensable to drive transformative, just and cost-effective transition and

upward convergence. Uncoordinated national measures risk imposing diverging rules on

market operators, non-harmonised public procurement practices, such as under green public

procurement practices, and permitting procedures, and ultimately undermining the functioning

of the Single Market.

Without further EU action, the status quo is likely to persist, increasing the risk of the EU

losing strategic industrial capacities and capabilities, of the Single Market to be further

fragmented, and of the EU becoming critically dependent on third countries for green, digital,

defence, and economic security objectives. This in turn could have negative implications on

the Union’s economic security, social and territorial cohesion, primarily through impacts on

employment, regional development, and equitable access to industrial opportunities.

In line with this logic, the proposed actions focus on areas where there is a demonstrable

value added in acting at Union level due to the scale, speed and scope of the efforts needed -

actions aimed at improving the business case for EIIs to invest in decarbonisation and for EU

strategic sectors and technologies to strengthen their competitiveness.

Article 5(3) TEU provides that the principle of subsidiarity applies in areas which do not fall

within the exclusive competence of the Union. Article 3(1)(e) TFEU provides that the Union

has exclusive competence in the area of common commercial policy. Article 207(2) TFEU

falls into the category of exclusive competences. Therefore, the question of subsidiarity does

not arise insofar Article 207 TFEU is used as an additional legal base for measures

implementing the Union’s common commercial policy.

• Proportionality

The proposed measures meet the principle of proportionality, demonstrating added value in

acting at the EU level due to the scale, urgency and scope of the efforts needed.

The measures on permitting will impose obligations on Member States to streamline

processes. The digitalisation of the permitting procedures will lead in the long term to time

and cost savings for both authorities and businesses, enabling the acceleration of clean

manufacturing and industrial deployment across the EU.

The low-carbon and made in EU requirements are proportionate to the European industrial

production capacities and designed as to not place significant financial burdens on the

Member States’ administrative budgets. Establishing lead markets is pivotal to increasing the

competitiveness of the key sectors and technologies, thereby strengthening the EU’s industrial

base and ensuring autonomy in these strategic sectors.

Mandatory conditions on foreign direct investment are necessary to achieve the objective of

maximising the benefits of these investments across Member States, strengthening the Single

Market benefits and leveraging the access to the Single Market. They will ensure investment

comes with know-how development, job creation, and value chain integration.

The measures on industrial manufacturing acceleration areas leave Member States responsible

for identifying and designating such areas, while providing benefits aimed at enabling better

and more competitive conditions for the manufacturing industry.

• Choice of the instrument

A regulation is considered the most appropriate instrument as it makes it possible to set

requirements that apply directly to national authorities and relevant economic operators. This

will help ensure that the requirements are implemented in a timely and harmonised way,

leading to greater legal certainty.

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3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER

CONSULTATIONS AND IMPACT ASSESSMENTS

• Ex-post evaluations/fitness checks of existing legislation

Not applicable.

• Stakeholder consultations

In line with the Better Regulation Guidelines, the Commission carried out a comprehensive

stakeholder consultation process, with the aim of collecting reliable information using a range

of methods, consulted parties and tools. The Commission ran multiple activities: an online

open consultation between April 15th and July 8th 2025 (314 responses and 133 attached

position papers); a call for evidence for the impact assessment (295 replies); a targeted

consultation open to associations and companies from the EIIs sector (62 responses); a reality

check workshop open to companies from the EIIs sector (40 participants); a reality check

workshop on EU low-carbon steel label, open only to steel companies (34 participants); a

reality check workshop open to Member States (46 participants), with all three reality checks

including the possibility to submit position papers; and a targeted consultation open for the

battery ecosystem and its downstream sectors (63 respondents). The results of the public

consultation are summarised in the factual summary report published with the answers to the

call for evidence on the ‘Have your say’ portal.

Overall, stakeholders argued the challenges faced by the EU energy-intensive industries as

being the lack of sufficiently affordable, renewable energy, unfair international competition,

high capital and operational costs attributed to decarbonisation, low willingness for

downstream sectors to pay for green premium, complex, long permitting procedures and

difficulty accessing funding for decarbonisation projects.

The Commission received broad support for the idea of creating and protecting lead markets

for low-carbon, EU made industrial products, as a key mechanism to stimulate demand and

foster investment in decarbonisation. Similarly, stakeholders agreed that the creation of lead

markets will serve to protect the competitiveness of EU clean tech and automotive industries.

They further confirmed that Made in EU requirements are important for ensuring that the

market for low-carbon industry products and clean tech products is not undermined by non-

EU competition. The majority of stakeholders from the batteries sector also supported Made

in EU requirements in various policy measures, for both public procurement and products

placed on the market. Streamlining and speeding up permitting procedures saw a high

support, in particular from SMEs, which have less resources to manage the administrative

workload. Stakeholders viewed provisions for foreign investment positively, noting that such

measures could attract much-needed capital along with additional benefits.

• Impact assessment

In line with the Better Regulation Guidelines, this regulatory proposal is based on an impact

assessment that analyses the problem and sub-problems related to the need for the EU

industry to accelerate the decarbonisation of processes and products, in a global context of

competitiveness challenges. The impact assessment identifies possible policy options to

address problem-drivers and assesses their likely impacts. The impact assessment was

structured to reflect the consultation of the Commission’s Inter-Service Steering Group on the

Industrial Accelerator Act.

The impact assessment received a negative opinion from the Regulatory Scrutiny Board

(RSB) on 26 September 2025. The Board recommended to:

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• Develop the dynamic baseline, including a better explanation of the magnitude of

decarbonisation investment slowdown and decarbonisation speed gap.

• Improve analysis on problem drivers, including drivers related to permitting and

FDIs, and, based on this, revise the general and specific objectives in a S.M.A.R.T

manner, as well as improve the measures.

• Conduct a more in-depth analysis of the availability and economic viability of

industrial decarbonisation technologies, and the demand for low-carbon alternatives,

including price elasticity and substitutability.

• Improve, by better quantifying, the costs and benefits analysis, including the

improvement of Annex 3.

• Acknowledge the robustness of the modelling for the costs and benefits analysis, and

transparently report the assumptions used for the calculation.

All the above-mentioned points were addressed to the best extent possible. When the revised

impact assessment was resubmitted, the Board issued a positive opinion with reservations on

20 November 2025. The reservations pointed at the need to improve the analysis on the

expected impacts of the general objective, as well as the interplay with economic security

implications. It also noticed the need to further explain the limitations related to the

modelling, as well as the cost benefit calculations and impacts on consumers and downstream

sectors. The comments have been addressed via an improved analysis and to the extent

feasible. The Board’s opinions as well as the final impact assessment and its executive

summary are published together with this proposal.

The impact assessment is built around a set of 5 specific objectives that tackle the problem

drivers identified. It sets out three policy options for each specific objective, based on the

level of policy intervention, the scope, the efficiency and coherence, as well as the

proportionality and subsidiarity principles.

Policy option 1 (PO1) proposes a carbon intensity label for all energy-intensive sectors. It

aims to create lead markets, by introducing low-carbon requirements for energy-intensive

materials (steel, cement19 and aluminium) in selected downstream sectors (automotive and

construction) in public procurement and support schemes. It also proposes introducing

minimum Made in EU requirements for batteries, solar PV systems and vehicle components

in public procurement procedures and for public support schemes. Regarding the objective of

maximising benefits for FDIs, it introduces voluntary conditions for investments above a

specified threshold for battery supply chain and potentially for relevant EIIs. To streamline

permitting, the option proposes a unified digital procedure for all permits, applicable to the

entire manufacturing sector. Lastly, it recommends Member States to facilitate public funding

for projects in industrial areas.

Policy Option 2 (PO2) builds upon the first option by broadening the scope and

requirements. Regarding lead markets, under PO2, low-carbon and Made in EU requirements

are introduced for steel, cement and aluminium used in selected downstream sectors

(automotive and construction) in public procurement and support schemes. Conditions for

specific investments are mandatory rather than voluntary. PO2 increases support for the

permitting process by introducing additional measures dedicated to EIIs. Lastly, it requires,

instead of recommends, Member States to designate industrial areas. The label decreases

19 For the lead markets measures related to cement, the requirements are established at the level of

concrete and mortar, as these are the relevant final products used in construction.

EN 11 EN

however its scope by mandating a specific carbon intensity label for steel, with detailed rules

that can later be expanded to include other energy-intensive materials.

Policy Option 3 (PO3) further extends the previous two options. On lead markets, it

introduces low-carbon and Made in EU requirements for all steel, cement and aluminium

placed on the market for use in automotive and construction It also extends Made in EU

requirements to all batteries, solar PVs and key vehicle components placed on the market. On

permitting, it introduces dedicated measures for industrial areas.

Overall, the preferred option is PO2, as it would meet the objectives in the most effective and

efficient way. It also has a more positive impacts in terms of proportionality that the other two

options, as it suggests introducing low-carbon and made in EU for public procurement and

public support only, while also showing the most coherence. PO2 could bring about one-off

net reductions of about EUR 240 million in terms of administrative burden for businesses,

mainly from permitting provisions (see Annex 4 of the impact assessment). The costs and

benefits analysis concluded that PO2 results in overall net benefits of about EUR 8 billion for

the economy in 2030, despite showing some adjustment costs for downstream sectors

impacted by the low-carbon and/or Made in EU requirements. However, these losses are

largely offset by long-term benefits in terms of value-added creation enhanced economic

security, resilience and job creation of the European strategic industries, which ultimately

provide stability and sustainable economic prosperity. PO3 would be more effective in

achieving certain objectives, especially concerning the lead market provisions, but it would

disproportionately increase the costs for the economy.

Differences compared to the preferred option in the impact assessment

The proposal for the Regulation contains measures that diverge from the preferred policy

option presented in the impact assessment, namely:

• Concerning permitting procedures, specific measures for industrial manufacturing

clusters (namely, tacit approval at intermediate stages and priority assessment of

connection requests), which were not in the preferred policy option, have been

introduced, in view of the synergetic benefits expected with the rest of the provisions

on industrial manufacturing acceleration areas.

• In terms of scope, the provisions on public procurement procedures, auctions and

support schemes cover additional net-zero technologies than those analysed in the

impact assessment. The proposal introduces Made in EU requirements also for solar

thermal, heat pumps, wind, nuclear fission, and hydrogen, in line with the goal of

increasing EU’s economic security, resilience, sustainability and security of supply.

A dedicated annex in the impact assessment has been added to present the key

impacts of these measures. While batteries and solar PV already today face a unique

combination of high global overcapacities and high EU dependencies on single

sources of supply, the other net-zero technologies in scope face intense (not always

fair) global competition and could experience similar market developments.

Therefore, the Commission has decided to introduce such provisions, in order to

anticipate and mitigate potential future supply and market risks.

Regarding steel, the proposal limits requirements for steel used in the automotive and

construction sectors to low-carbon criteria (rather than combining low-carbon and

EU-origin requirements) within the framework of public procurement and support

schemes. In light of the recently proposed trade measure addressing the negative

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trade-related effects of global overcapacity on the Union steel market, introducing a

European preference for steel is not considered necessary.

• For the purposes of compliance with the low-carbon requirements, concrete will be

considered low-carbon where it meets the criteria for “low-carbon concrete” laid

down in the implementing measures adopted under the Construction Products

Regulation (CPR). Likewise, low-carbon steel products used in construction and

covered by a harmonised technical specification must comply with the low-carbon

definition established under the CPR framework. Steel products falling outside the

scope of the CPR will be considered low-carbon where they meet the conditions for

“low-carbon steel” to be set out in the delegated acts under the ESPR. This approach

will ensure regulatory consistency with the existing product specific legislation.

• In addition, the proposal includes amendments to Article 25 of NZIA on public

procurement to clarify the technology scope in including only technologies that are

commonly publicly procured. It also includes changes in Article 26 of NZIA in

relation to auctions. This is to take account of the growing importance of auctions for

securing the Union’s energy supply and safeguarding its technological sovereignty. It

also includes amendments to Article 1 and 22 of the Construction Products

Regulation.

• The proposal does not follow the preferred policy option to adopt a voluntary steel

label in support of low-carbon steel investment decisions. Instead, the focus is put on

implementing rapidly existing commitments, such as in the context of the ESPR, and

to design an empowerment to be able to supplement the lead market provisions with

the development of voluntary labels on the low-carbon performance classes of

energy-intensive industrial products.

All these measures remain within the overall framework assessed in the impact

assessment and do not significantly affect the comparison of options. For clean

technologies, the scope extension implies that the resulting impacts on electricity

markets could be of higher magnitude, including for downstream users. However, the

same safeguards that were analysed in detail for batteries and solar apply as well to

other net zero technologies.

• Regulatory fitness and simplification

This proposal is designed to mitigate the impacts of Union origin and low-carbon

requirements, and foreign direct investment conditionalities, on regulatory burden. Other parts

e.g. on permitting directly reduce it for economic operators.

The administrative costs for businesses that will apply directly with this Regulation are

expected to be offset by efficiency gains from streamlined permitting and long-term benefits

in terms of greater resilience of supply chains. They relate to obligations to demonstrate

compliance for lead market provisions for companies operating in relevant downstream

sectors. In terms of conditionalities on investments, the uniform application of the conditions

across the Union would largely prevent forum shopping and race to the bottom in attracting

foreign investments, while harmonising and simplifying the business conditions.

For Member States, additional administrative costs are expected, connected to the monitoring

and implementation of lead markets provisions in public procurement and support schemes.

Similarly, the implementation of conditions on foreign investment, including prescription,

monitoring and penalising, will add to the administrative costs. Permitting provisions are also

expected to increase costs for public authorities in the short term, while, on the other hand,

digitalisation and simplification will deliver substantial cost and time savings in the medium

EN 13 EN

and long term, for both the industry and public authorities. Lastly, the designation of

acceleration areas as well as implementation of benefits for industrial areas will come with an

additional administrative cost for Member States, against the benefits for individual

companies operating within the areas.

• Fundamental rights

Article 16 of the Charter of Fundamental Rights of the European Union (‘the Charter’)

provides for the freedom to conduct a business. The measures under this proposal create

innovation capacity and foster demand for energy-intensive industrial products in the Union,

which can reinforce the freedom to conduct a business in accordance with Union law and

national laws and practices.

4. BUDGETARY IMPLICATIONS

The proposal has budgetary implications for the Commission. Specifically, it will require

approximately 6 full-time equivalents per year to implement, an additional recurring cost of

EUR 20 000 per section for the expansion of Annex 1 of the SGDR with the envisioned

permitting provisions and a one-off cost of EUR 20 000 for investment in the back-end of the

Single Digital Gateway (SDG) system. Compared to the Impact assessment report, the figures

have been adjusted to reflect to wider scope of the measures proposed in the Act.

The budget implications are mainly to carry out the work foreseen to (i) review foreign direct

investment notifications submitted by the Investment Authorities within Member States; (ii)

monitor enforcement of Member States’ obligations on lead market provisions; and (iii)

implement the expansion of Annex II of the SGDR and the back-end SDG system to meet

permitting provisions.

5. OTHER ELEMENTS

• Implementation plans and monitoring, evaluation and reporting arrangements

The Commission will evaluate the coherence, results, impacts, proportionality and

subsidiarity of this proposal three years after the date on which it becomes applicable. A

review clause is proposed after five years, to assess whether lead market provisions remain

necessary in light of market developments, or whether such measures should be considered

for other sectors critical to the EU’s economic security. The measures proposed are conceived

as targeted and time-bound interventions to accelerate the Union’s industrial capacity and

boost economic security of strategic sectors only. This guarantees that the tailor-made

approach remains flexible, evidence-based and can be adapted to the evolving needs of

Europe’s industrial base.

In order to conduct the evaluation, Member States and national competent authorities will

provide necessary and relevant information to the Commission, as appropriate, at its request.

• Detailed explanation of the specific provisions of the proposal

Chapter I of the Regulation outlines the general provisions of the Regulation, including the

subject matter, namely the improvement of the functioning of the internal market by

establishing a framework to ensure the Union’s access to a secure, sustainable, and resilient

supply of relevant manufacturing products and their supply chains, the scope of the

Regulation, the industrialisation objective and the definitions needed for the purposes of this

Regulation.

Chapter II outlines the enabling conditions for industrial production and decarbonisation. It

sets out provisions that ensure streamlined, efficient and digital permit-granting procedures

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for industrial manufacturing projects. It also introduces provisions on permit-granting

procedures for energy-intensive industry decarbonisation projects and net zero industry

projects.

Chapter III establishes a framework for the application of Union origin and low-carbon

requirements to certain products and services from strategic sectors in the context of public

procurement and public support schemes.

It sets out low-carbon requirements for steel, and Union origin and low-carbon requirements

for concrete and mortar and aluminium used in specific downstream sectors, namely

buildings, infrastructure and transport, as well as Union origin requirements for vehicles. In

addition, it provides an empowerment for laying down demand-side measures concerning

products from the chemical industry.

Chapter IV establishes the framework for the imposition of conditions on foreign direct

investments in emerging strategic sectors, where the investment value exceeds EUR 100

million. Such investment will not take effect until the relevant conditions have been fully

complied with. The Investment Authorities designated by Member States will be responsible

for reviewing and monitoring compliance with those conditions, with the Commission playing

a coordinating role.

Chapter V establishes a framework for the designation of industrial manufacturing

acceleration areas by Member States based on a defined set of criteria. These areas are

intended to facilitate the geographical clustering industrial activities and to promote

favourable conditions for the industries established therein. Industrial manufacturing

acceleration areas will be developed in synergy with other Union initiatives.

Chapter VI establishes the common, final provisions of the Regulation by setting out

implementation rules, including evaluation, monitoring, review, exercising the delegation

power and penalties. It also includes amendments to Regulation (EU) 2018/1724 [Single

Digital Gateway Regulation]; Regulation (EU) 2024/1735 [Net-Zero Industry Act], including

provisions on origin requirements for public procurement procedures; cybersecurity

requirements for public procurement and strengthened cybersecurity provisions for auctions;

origin requirements for auctions and for other types of public intervention. Finally, it includes

amendments to Regulation (EU) 2024/3110 [Construction Products Regulation] in order to

ensure coherence and synergies with, and to support the objectives of, this proposal.

Annex I sets out the list of sectors for industrial manufacturing acceleration areas.

Annex II defines low-carbon content requirements, Union origin requirements, or both, for

certain products of energy-intensive industries in the context of public procurement

procedures and public support schemes.

Annex III sets out Union origin requirements for vehicles for public procurement procedures

and public support schemes. It also sets the criteria for a small zero-emission vehicle to be

considered ‘made in the EU’ for the purposes of Article 5 of Regulation 2019/631.

Annex IV sets out the amendment to Annex II to Regulation (EU) 2018/1724.

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2026/0068 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

establishing a framework of measures for the acceleration of industrial capacity and

decarbonisation in strategic sectors and amending Regulations (EU) 2018/1724,

(EU) 2024/1735 and (EU) 2024/3110

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular

Article 114 and 207(2) thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Economic and Social Committee20,

Having regard to the opinion of the Committee of the Regions21,

Acting in accordance with the ordinary legislative procedure,

Whereas:

(1) The global COVID-19 pandemic, Russia’s illegal and unprovoked war of aggression

against Ukraine, hostile economic actions, cyberattacks, foreign interference, the

weaponisation of Union economic dependencies, arbitrary deployment of trade

measures, the increasing effects of climate change and rising geopolitical tensions

have exposed the Union’s vulnerabilities and pose a serious threat to the Union’s

societies, economies, and undertakings. The Union’s economic security is therefore

inextricably linked to its capacity to strengthen resilience and mitigate risks arising

from hostile economic interconnections. The Union is committed to protecting its

economic security and addressing threats to its supply chains, infrastructure, key

technologies and threats coming from the weaponisation of its economic

dependencies22. The Union’s economic security and social cohesion are inextricably

linked to its capacity to strengthen its resilience and mitigate the risks arising from

economic interconnections. That requires the strengthening of the resilience of its

supply chains and the safeguarding of its internal market and industrial capacity, while

maintaining territorial, social and economic cohesion, including by fostering a strong

and competitive industrial base in selected strategic sectors, such as clean and digital

technologies, energy-intensive industries and the automotive sector, to secure access to

strategic materials and technologies and retain high-quality jobs in the Union.

20 […] 21 […] 22 https://www.consilium.europa.eu/en/policies/european-economic-security/

EN 16 EN

(2) The European Economic Security Strategy23, and the Economic Security

Communication of 3 December 202524 clearly set the Union’s pathway towards

addressing geo-economic tensions and technological shifts to avoid economic

dependencies in critical industrial supply chains, technologies and infrastructures

which can lead to local shortages and threaten the Union’s competitiveness, economy

and ultimately its social cohesion.

(3) Despite the Union’s objectives of economic security, resilience, quality jobs and

climate neutrality, manufacturing capacity has decreased over the last 20 years. The

share of manufacturing in total GDP has declined from 17.4% to 14.3% between 2000

and 2024. It is therefore necessary to strengthen economic resilience, competitiveness

and job creation, while also ensuring that the Union’s climate and energy targets are

met. The Union’s manufacturing capacity should aim to account for at least 20% of

the Union’s gross domestic product by 2035. The development of industrial

manufacturing projects within the Union should be facilitated to contribute to that

objective.

(4) The challenges posed by the need for industrial decarbonisation and for a resilient

industrial production are complex and transcend national borders. Fragmented national

measures aimed at tackling those challenges risk undermining the functioning of the

internal market. Measures adopted by individual Member States could lead to

divergent requirements imposed on market operators, inconsistent procurement

practices and divergent permit-granting procedures across Member States. Such

measures could create obstacles to cross-border trade within the Union and distortions

on the internal market, undermining investor confidence, increasing costs, and

redirecting investment flows within the Union. It is therefore necessary to establish

harmonised measures to ensure the proper functioning of the internal market.

(5) To ensure legal certainty, reference should be made to the most recent revision of the

European Classification of Economic Activity (NACE, Rev. 2). In order to ensure

consistency with existing Union legislation and enable the uniform application of this

Regulation across the Union, industrial manufacturing as well as energy-intensive

industries should be defined by referring to the NACE classification codes25.

(6) Energy-intensive industries are a key pillar of the Union’s prosperity. They enable a

wide range of downstream industries and contribute to the Union’s economy by

creating jobs, supporting growth and fostering innovation. However, they also account

for around 22.3% of the Union’s greenhouse gas emissions and require substantial

investments in decarbonisation, leading also to reduced pollution. The combination of

high energy prices, the need for large-scale decarbonisation investments and unfair

global competition places energy-intensive industries at a competitive disadvantage,

and there are growing signs of industrial decline.

(7) Net-zero technologies are pivotal to achieving the Union’s energy and climate targets.

They play a crucial role in reducing greenhouse gas emissions and enabling the

decarbonisation of a wide range of economic sectors, including building, transport and

the industry. They are also key in advancing sustainable energy solutions, by enabling

23 Joint Communication to the European Parliament, the European Council and the Council on “European

Economic Security Strategy” (JOIN/2023/20 final). 24 Joint Communication to the European Parliament and the Council on Strengthening EU economic

security (JOIN(2025)977 final). 25 With the exception of NACE Code C12, e-liquids used in vaping devices and nicotine-containing

products under C20.59 and manufacture of electronic cigarettes and tobacco heating devices under

C32.99 (unless they are authorised as medicinal products or certified as medical devices).

EN 17 EN

the decarbonisation of the energy supply and providing innovative solutions to enable

the needed expansion and digitalisation of electricity grids and the energy system as a

whole. However, the Union’s net-zero technology manufacturing sector faces

significant challenges, including increasing global competitive pressures and supply

chain vulnerabilities which endangers the Union’s competitiveness and economic

resilience.

(8) The bioeconomy is able to provide sustainable biomass and bio-based solutions for

industrial production. The Commission communication “A Strategic Framework for a

Competitive and Sustainable EU Bioeconomy”26 identifies lead markets, such as bio-

based plastics and polymers, bio-based chemicals and biobased construction products,

as well as lead technologies that can support the Union’s strategic autonomy and the

decarbonisation of the industrial sectors identified in this initiative.

(9) The automotive industry is a cornerstone of the Union economy. With a view to

delivering on the Union’s climate policy objectives, over the past years, the European

automotive industry has been investing heavily in the development of cleaner vehicles

and innovative components. Electric vehicles and electric vehicle components,

including traction batteries, e-powertrain components and electronic systems, are

essential technologies for advancing the decarbonisation of road transport. However,

as a result of costs disadvantage and the transformation of the value chain with an

increasing value share for batteries, e-powertrain and electronics, the level of Union

content in vehicles produced in the Union is decreasing. It is no longer possible to

postpone effective measures to avoid the risk of local production being displaced. In

the absence of such measures, the current circumstances would lead to a full reliance

on third countries for key vehicle components. That would be a serious threat to the

Union’s economic security and future resilience, as well as for its climate goals.

(10) The unpredictability, complexity and, at times, excessive length of national permit-

granting procedures undermine the cost-effectiveness of investments necessary for the

development of industrial activities. Therefore, and in order to ensure and speed up the

effective implementation of industrial manufacturing activities, Member States should

apply streamlined and digitalised permit-granting processes. A competent authority

should coordinate all permit granting processes and issue a comprehensive decision

within the applicable time limit.

(11) The implementation of single access points should be based on the European Business

Wallets established pursuant to [Proposal for a Regulation on the establishment of

European Business Wallets27], as they provide a secure, standardised, and

interoperable platform for businesses to interact with public sector bodies. This should

enable the efficient and effective submission of applications, while ensuring a high

level of data protection, cybersecurity, and integrity of information. The European

Business Wallets will also enable the streamlining of investments that were made and

the avoidance of unnecessary duplications, allowing for the optimisation of resources

and the reduction of administrative burdens for businesses. The implementation of

single access points should also, to the extent possible, use existing Union digital

infrastructures, catalogues and building blocks, including those developed under the

Once-Only Technical System and its implementing acts. This would promote

26 Communication from the Commission to the European, the Council, the European Economic and Social

Committee and the Committee of the Regions, A Strategic Framework for a Competitive and

Sustainable EU Bioeconomy (COM(2025)960). 27 Proposal for a Regulation of the European Parliament and of the Council on the establishment of

European Business Wallets (COM/2025/838 final).

EN 18 EN

complementarity, interoperability and the efficient use of public resources, while

avoiding duplication of existing digital solutions.

(12) In order to ensure streamlined and simplified permit-granting procedures, a single

application covering all necessary permits should be provided for all industrial

manufacturing projects except for the manufacturing sector under the C12 code. It

should not apply where specific permit-granting or licensing procedures or

requirements are established in Union harmonisation legislation for industrial

manufacturing projects, such as pursuant to Regulations (EU) 2024/173528 and (EU)

2024/125229 of the European Parliament and of the Council. Sectorial Union

legislation governing medicines and medical devices has recently undergone or is

undergoing further streamlining of harmonised rules and timelines for authorisations

and certifications, with options to speed up the process if necessary. Those rules

should therefore not be considered permit-granting procedures within the context of

this initiative.

(13) Regulation (EU) [202X/XX] of […]30 establishes a common acceleration framework

for environmental assessments in order to boost the Union’s roll out of key

technologies, reduce dependencies and strengthen competitiveness. Procedures linked

to environmental assessments should be accelerated and streamlined for plans,

programmes and projects across all sectors of the economy while maintaining high

levels of protection of human health and of the environment. Some sectors may,

however, require yet faster environmental assessments. Therefore, and in order to

safeguard the coherence of the legal framework of environmental assessments, while

allowing for the additional needs for acceleration in certain strategic sectors,

Regulation (EU) [202X/XX] establishes a dedicated toolbox that should therefore be

used in the context of this Regulation. Given their essential role in ensuring the

achievement of the Union’s climate objectives, and their contribution to the Union’s

resilience and economic security, energy-intensive industry decarbonisation projects,

industrial manufacturing projects located in industrial manufacturing acceleration

areas, and net-zero technology projects should be considered strategic projects within

the meaning of Regulation (EU) [202X/XX] and therefore benefit from the dedicated

toolbox established under that Regulation.

(14) Regulation (EU) 2024/1735 sets out provisions that streamline administrative and

permit-granting processes for net-zero technology manufacturing projects. Some

specific components in the supply chain of net-zero technologies are produced through

energy-intensive production processes. Energy-intensive industry decarbonisation

projects fall within the scope of Regulation (EU) 2024/1735 where the relevant

facilities produce components that are part of the supply chain of a net-zero

technology. However, energy-intensive facilities that do not produce components that

are used in net-zero technologies are currently excluded from the scope of

Regulation (EU) 2024/1735. This creates the risk of uneven conditions of between

28 Regulation (EU) 2024/1735 of the European Parliament and of the Council of 13 June 2024 on

establishing a framework of measures for strengthening Europe’s net-zero technology manufacturing

ecosystem and amending Regulation (EU) 2018/1724 (OJ L, 2024/1735, 28.6.2024, ELI:

http://data.europa.eu/eli/reg/2024/1735/oj). 29 Regulation (EU) 2024/1252 of the European Parliament and of the Council of 11 April 2024

establishing a framework for ensuring a secure and sustainable supply of critical raw materials and

amending Regulations (EU) No 168/2013, (EU) 2018/858, (EU) 2018/1724 and (EU) 2019/1020 (OJ L,

2024/1252, 3.5.2024, ELI: http://data.europa.eu/eli/reg/2024/1252/oj). 30 Proposal for a Regulation of the European Parliament and of the Council on speeding-up environmental

assessments (COM/2025/984 final, 10.12.2025).

EN 19 EN

energy-intensive industries and slows down decarbonisation efforts. All energy-

intensive decarbonisation projects should therefore be subject to the same permit-

granting processes.

(15) The Union should adopt a more strategic approach in leveraging its economic weight

and the value of access to its internal market. In that context, the strategic use of public

intervention is essential to prevent critical dependencies in the Union. Public

procurement amounts to 15% of the Union’s GDP. Contracting authorities and entities

should therefore, where appropriate, ensure that public procurement requirements

foster economic security and resilience of supply chains. Public support schemes also

play an important role in stimulating demand in downstream sectors that account for a

significant share of demand for certain strategic products and technologies. Such

schemes should therefore favour beneficiaries that make a greater contribution to

strengthening the Union’s resilience and advancing its decarbonisation objectives.

Auctions are crucial for the deployment of net-zero technologies and should be

designed to foster demand for such technologies including components originating

from the Union.

(16) The Union and Member States maintain an open investment environment, as enshrined

in the Treaty on the Functioning of the European Union (TFEU) and embedded in

their international commitments. This includes commitments under the World Trade

Organisation Agreement on Government Procurement (GPA)31, as well as bilateral

trade agreements, to open public procurement procedures and other forms of public

intervention. At the same time, the Union retains the right to apply general or security

exceptions. The Commission will regularly assess whether the conditions for

excluding a third country from the scope of the provisions deeming content originating

in third countries to be equivalent to Union origin, are in place, and will take

appropriate action. Economic security aims at protecting and strengthening the internal

market. Member States cannot rely on economic security to prevent, condition, or

otherwise hinder in any way investments coming from other Member States.

(17) The progressive integration of candidate countries and potential candidates into the

Union’s internal market, including through their gradual participation in Union

policies and programmes, is essential to support their alignment with the acquis,

strengthen their competitiveness, promote their deeper integration into Union value

chains and enhance the Union’s economic security. This Regulation should therefore

contribute to fostering such gradual integration, including by facilitating the

participation of economic operators from those countries in Union-wide value chains,

Union public procurement, public support schemes and auctions where appropriate

and in line with the Union’s interests and objectives.

(18) Acknowledging the importance of the Union’s advancing towards greater strategic

autonomy and resilience, the Union should also recognise for reasons of

coherence the proactive efforts of partner countries to prioritise domestic participation

in economic activities, similar to the measures established within this Regulation. In

the context of implementing Union origin requirements within certain categories of

public procurement and public schemes procedures, the Union should thoughtfully

consider partner countries’ content conditions for strategic Union-funded or supported

investments in these partner countries, accepting its presence. This strategic approach

31 World Trade Organisation (WTO), Agreement on Government Procurement 2012, available at

https://www.wto.org/english/docs_e/legal_e/rev-gpr-94_01_e.pdf.

EN 20 EN

is expected to enhance mutual economic benefits, strengthen strategic partnerships,

and align with the Union’s overarching objectives of international partnerships.

(19) Demand-side measures should focus on establishing low-carbon requirements for

steel, cement and aluminium used in buildings, infrastructure and motor vehicles,

where appropriate, since those sectors are the most energy-intensive industries.

Targeted Union wide demand-side measures can help create lead markets for low-

carbon and Union-produced energy-intensive industrial products, supporting

decarbonisation while strengthening the Union’s industrial base.

(20) Downstream sectors that account for a large share of demand for certain energy-

intensive materials, such as the construction and automotive sectors, should be

prioritised under this Regulation when establishing low-carbon requirements, Union

origin requirements, or both. That is particularly appropriate given that such sectors

are significantly subject to public procurement and support schemes, while the share

of energy-intensive input in total production value is relatively small and therefore

minimises the impact of any price premium.

(21) In order to ensure regulatory consistency with existing Union product legislation,

steel, concrete and aluminium in construction should be considered low-carbon in

compliance with the requirements set out in the implementing measures adopted

pursuant to Regulations (EU) 2024/311032 and (EU) 2024/178133 of the European

Parliament and of the Council.

(22) The Clean Industrial Deal Communication34 highlighted the need to create lead

markets for industrial products with a low greenhouse gas emissions intensity,

including by promoting such products on the internal market through the

establishment of a Union labelling scheme, starting with the steel sector. That should

be seen in the context of Union products legislation already designed to introduce

labelling and information requirements, including comprehensive product labelling

requirements to be established under the delegated acts pursuant to Regulations (EU)

2024/3110 and (EU) 2024/1781. Considering the importance of both primary and

secondary steel production for the long-term resilience of the Union industrial base,

such requirements should be based on classes of performance that acknowledge the

different decarbonisation effort of the technologies’ routes, also rewarding circularity,

adjusting emission intensity thresholds based on percentage of scrap metal used in

production for those product categories that typically require primary steel production,

as necessary. It should also be possible to complement the delegated acts adopted

pursuant to Regulations (EU) 2024/3110 and (EU) 2024/1781 in order to support the

creation of lead markets by informing investment decisions towards products granted a

lower greenhouse gas intensity performance class, for industrial products not yet

regulated by a Delegated Act under Regulation (EU) 2024/1781, or covered in the

scope of products included in the working plan adopted in accordance with that

32 Regulation (EU) 2024/3110 of the European Parliament and of the Council of 27 November 2024

laying down harmonised rules for the marketing of construction products and repealing Regulation

(EU) No 305/2011 (OJ L, 2024/3110, 18.12.2024, ELI: http://data.europa.eu/eli/reg/2024/3110/oj). 33 Regulation (EU) 2024/1781 of the European Parliament and of the Council of 13 June 2024 establishing

a framework for the setting of ecodesign requirements for sustainable products, amending Directive

(EU) 2020/1828 and Regulation (EU) 2023/1542 and repealing Directive 2009/125/EC (OJ L,

2024/1781, 28.6.2024, ELI: http://data.europa.eu/eli/reg/2024/1781/oj). 34 Communication From the Commission to the European Parliament, the European Council, the Council,

the European Economic and Social Committee and the Committee of The Regions, A Green Deal

Industrial Plan for the Net-Zero Age (COM/2023/62 final, 1.2.2023).

EN 21 EN

Regulation. To do so, it should be possible to establish voluntary classification

systems based on the greenhouse gas intensity of industrial products. To provide

environmental integrity and administrative feasibility, it is important to rely on well-

established and monitored emissions accounting methodologies. For domestic

installations and sub-installations, the EU Emissions Trading System (EU ETS)

provides relevant products benchmarks and system boundaries in Annex I to

Commission Delegated Regulation (EU) 2019/33135 and sound emissions accounting

rules in Commission Implementing Regulation (EU) 2018/206636. Concerning

imported products, in order to limit administrative burden, it is appropriate to enable

the use of data already verified in the context of the Carbon Border Adjustments

Mechanism (CBAM), in accordance with implementing rules adopted pursuant to

Article 7(a) of Regulation (EU) 2023/956 of the European Parliament and of the

Council37. In view of reflecting accurately the greenhouse gas intensity of the

industrial product, in addition to covering the direct emissions typically related to the

installation’s activities covered by Annex I of Directive 2003/87/EC of the European

Parliament and of the Council38, it is appropriate to also account for the most

important sources of indirect emissions, including those from electricity, hydrogen and

heat production used in the manufacturing process. To ensure consistency and limit

administrative burden, methodologies used to define low-carbon requirements under

this Regulation should make use of emissions of data reported under the EU ETS and

CBAM, where available and relevant.

(23) In order to ensure the attainment of the objectives of this Regulation, in particular the

creation of lead markets for European low-carbon industrial products, minimum

mandatory technical specifications should be provided for low-carbon and Union

origin requirements in public procurement procedures Those requirements should

apply to the procurement of those products in public supply contracts and in public

works, public services contracts and concessions, where those products will be used

for activities conducted under those contracts. In compliance with the public

procurement framework, those minimum mandatory technical specifications should

avoid artificially restricting competition and avoid favouring a specific economic

operator. Contracting authorities and contracting entities should conduct the public

procurement procedures in compliance with Directives 2014/23/EU39, 2014/24/EU40

35 Commission Delegated Regulation (EU) 2019/331 of 19 December 2018 determining transitional

Union-wide rules for harmonised free allocation of emission allowances pursuant to Article 10a of

Directive 2003/87/EC of the European Parliament and of the Council (OJ L 59, 27.2.2019, p. 8,

27.2.2019, ELI: http://data.europa.eu/eli/reg_del/2019/331/oj). 36 Commission Implementing Regulation (EU) 2018/2066 of 19 December 2018 on the monitoring and

reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC of the European Parliament

and of the Council and amending Commission Regulation (EU) No 601/2012 (OJ L 334, 31.12.2018, p.

1, 31.12.2018, ELI: http://data.europa.eu/eli/reg_impl/2018/2066/oj). 37 Regulation (EU) 2023/956 of the European Parliament and of the Council of 10 May 2023 establishing

a carbon border adjustment mechanism (OJ L 130, 16.5.2023, p. 52, 16.5.2023, ELI:

http://data.europa.eu/eli/reg/2023/956/oj). 38 Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a

scheme for greenhouse gas emission allowance trading within the Community and amending Council

Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32, 25.10.2003, ELI:

http://data.europa.eu/eli/dir/2003/87/oj). 39 Directive 2014/23/EU of the European Parliament and of the Council of 26 February 2014 on the award

of concession contracts (OJ L 94, 28.3.2014, pp. 1-64, ELI: http://data.europa.eu/eli/dir/2014/23/oj). 40 Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public

procurement and repealing Directive 2004/18/EC (OJ L 94, 28.3.2014, p. 65,

ELI: http://data.europa.eu/eli/dir/2014/24/oj).

EN 22 EN

and 2014/25/EU41 of the European Parliament and of the Council and applicable

sectoral legislation. The Union origin of products and components should be

determined in accordance with the Union customs legislation.

(24) In order to ensure the feasibility of the requirements at reasonable cost and avoid

restricting competition, it is necessary to lay down the conditions under which

contracting authorities may, on an exceptional basis, decide not to apply the low-

carbon and Union origin requirements. Those conditions should cover cases where the

application of such requirements would result in technical incompatibilities in the

operation or maintenance of a project such as situations where the use of such products

would risk compromising the fulfilment of basic requirements for construction works

of the building or infrastructure, set out in Regulation (EU) 2024/3110. The

requirements laid down in this Regulation should apply exclusively to procurement

procedures falling within the scope of Directive 2014/23/EU, Directive 2014/24/EU

and Directive 2014/25/EU, that is, to procedures whose estimated value reaches or

exceeds the thresholds set out in those Directives. Accordingly, procurement

procedures not covered by those Directives, including those below the applicable

thresholds, should not be subject to the requirements established by this Regulation,

thereby avoiding disproportionate obligations for low-value procurements carried out

by contracting authorities, including at local level.

(25) The Automotive package adopted on 16 December 2025 includes a proposal to amend

Regulation (EU) 2019/631 of the European Parliament and of the Council42 to provide,

inter alia, for the granting of super-credits for small affordable electric vehicles made

in the Union prior to 2035 and amends the 2035 emissions reduction target, with the

remaining emissions to be compensated through the use of low-carbon steel made in

the Union or renewable and low-carbon fuels. The Automotive package also includes a

[proposal for a Regulation on clean corporate vehicles] which limits financial support

for corporate vehicles to zero- and low-emissions corporate vehicles ‘made in the

European Union’. In order to ensure legal certainty and consistency with Regulation

(EU) 2019/631 as amended and the [proposal for a Regulation on clean corporate

vehicles], this Regulation should lay down definitions of ‘small affordable electric

vehicles made in the Union’, ‘low-carbon steel made in the Union’ and ‘corporate cars

and vans made in the European Union’.

(26) In order to simplify procedures and reduce administrative burden, the verification of

compliance with the requirements laid down in this Regulation should not impose a

disproportionate burden on economic operators or contracting authorities. The

verification system should therefore be based on a self-declaration by economic

operators. Such approach is consistent with the general framework for public

procurement established by Directive 2014/24/EU, in particular Article 59 thereof,

which provides for self-declaration of compliance, subject to subsequent verification

of the successful tenderer. For vehicles, manufacturers should, at the time of issuing

the certificate of conformity in accordance with Regulation (EU) 2018/858 of the

41 Directive 2014/25/EU of the European Parliament and of the Council of 26 February 2014 on

procurement by entities operating in the water, energy, transport and postal services sectors and

repealing Directive 2004/17/EC (OJ L 94, 28.3.2014, p. 243). 42 Regulation (EU) 2019/631 of the European Parliament and of the Council of 17 April 2019 setting CO2

emission performance standards for new passenger cars and for new light commercial vehicles, and

repealing Regulations (EC) No 443/2009 and (EU) No 510/2011 (OJ L 111, 25.4.2019, p. 13, ELI:

http://data.europa.eu/eli/reg/2019/631/oj).

EN 23 EN

European Parliament and of the Council43, provide an accompanying document

certifying for the vehicles that comply with the relevant Union origin requirements.

This document should be equivalent to a self-declaration and form part of the

documentary evidence demonstrating compliance with the requirements set out in this

Regulation.

(27) To ensure that the requirements established by this Regulation remain appropriate

even as market conditions, technological developments and the climate and internal

market policy objectives of the Union continue to evolve, the Commission should be

empowered to revise the requirements based on objective criteria and monitoring

results. When assessing whether to revise Union origin requirements, low-carbon

requirements, or both, the Commission should take into account developments in the

relevant legislative frameworks, including the customs legislation on rules of origin,

Emissions Trading System laid down in Directive 2003/87/EC the Carbon Border

Adjustment Mechanism laid down in Regulation (EU) 2023/956, and trade defence

instruments.

(28) Investment, including from foreign entities, plays a critical role in fostering a strong

internal market and territorial cohesion, particularly by promoting innovation and

driving economic growth in the Union which is essential for its competitiveness.

However, in exceptional circumstances, particularly large investments originating

from third countries that hold a very significant market position in the global risk

disrupting important supply chains and the security of emerging strategic sectors that

are of particular importance in the development of the internal market. Divergent

conditions applied by Member States for such investments fragment the internal

market by creating unequal conditions for investors allowing investments that do not

contribute genuine added value to the Union economy while creating significant risk

for the development and supply security in these sectors and creating an incentive for

“regulatory arbitrage” by investors. Allowing such investments to proceed without any

conditions could mean that the added value creation associated with selected strategic

technologies and innovative manufacturing activities remains outside the Union,

which have detrimental effect for the Union’s supply security and technological

development in emerging strategic sectors. Moreover, unconditional exposure of the

internal market to such large investments risks putting into question the Union’s

technological advancements necessary for its twin transition and defence capabilities.

Therefore, the provisions of this Regulation should ensure that such large investments

coming from third countries that hold a particularly significant market position do not

disrupt the Union’s supply security and economic security, and ensure its

technological advancement in emerging strategic sectors. If such investments do not

provide for sufficient Union participation and technology transfer, the long-term

supply security of emerging strategic sectors is hampered due to lack of Union

capacities independent from the country holding a significant share of relevant global

supply. Furthermore, it has been observed that certain of such investments do not

involve meaningful employment of Union workers, which jeopardizes the

development of skills crucial for the development of emerging strategic sectors in the

internal market.

43 Regulation (EU) 2018/858 of the European Parliament and of the Council of 30 May 2018 on the

approval and market surveillance of motor vehicles and their trailers, and of systems, components and

separate technical units intended for such vehicles, amending Regulations (EC) No 715/2007 and (EC)

No 595/2009 and repealing Directive 2007/46/EC (OJ L 151, 14.6.2018, p. 1, ELI:

http://data.europa.eu/eli/reg/2018/858/oj).

EN 24 EN

(29) In order to ensure that the internal market remains attractive for investment, and that

investment adds value to the Union’s economy and society, it is necessary to establish

common conditions for foreign direct investment in manufacturing emerging strategic

sectors. Those sectors should be manufacturing sectors with innovative potential

where Union entities are not at or near the global innovation frontier, and where

appropriate Union capacities and participation should be ensured. Harmonised criteria

should apply to foreign investors of a third country which holds over 40% of the

global manufacturing capacity in emerging strategic sectors. To ensure the

effectiveness of the provisions of this Regulation, the Commission should monitor the

global manufacturing capacity of those sectors and publish the results.

(30) Greenfield foreign investments occur where the foreign investor or a foreign investor’s

subsidiary in the Union sets up new facilities or a new undertaking in the Union. Both

Greenfield and Brownfield foreign investments should fall within the scope of this

Regulation to the extent that they involve the acquisition of control over a Union target

or Union asset, as they both have the possibility to impact the well-functioning internal

market.

(31) The review of the investments and application of the harmonised conditions should be

carried out in accordance with this Regulation. It should take into account all

information available and adhere to the principle of proportionality. Moreover, all

measures taken by national authorities or the Commission with respect to the review

of foreign investments should comply with Union law, and in particular with Articles

49 and 63 TFEU.

(32) Therefore, the provisions of this Regulation should apply to foreign direct investments

in emerging strategic sectors in accordance with the thresholds established by this

Regulation, notwithstanding the screening mechanism established under Regulation

(EU) 2019/452 of the European Parliament and of the Council44. Moreover, the

provisions of this Regulation should also apply without prejudice to Union

competition law instruments, including Regulation (EU) 2022/2560 of the European

Parliament and of the Council45 and Council Regulation (EC) No 139/200446.

(33) The foreign direct investment criteria should capture emerging strategic sector

investments in the Union by third-country investors (‘foreign investors’) in the Union.

However, it could also be necessary to include investments in the Union by entities

that are controlled, directly or indirectly, by a third-country person or entity regardless

of the ultimate owner’s location (‘foreign investor’s subsidiary’), as they are equally

capable of disrupting the functioning of the internal market, including its supply and

economic security, due to the control exercised from the third country having a

significant market share Therefore, Investment Authorities should apply the

investment criteria where they are clearly needed to effectively ensure the protection

of public security, the supply and economic security, and environmental sustainability

in the Union, and where it is essential for the technological advancements of the

internal market for the green and digital transition and defence purposes. Moreover, to

44 Regulation (EU) 2019/452 of the European Parliament and of the Council of 19 March 2019

establishing a framework for the screening of foreign direct investments into the Union (OJ L 79I,

21.3.2019, p. 1, ELI: http://data.europa.eu/eli/reg/2019/452/oj). 45 Regulation (EU) 2022/2560 of the European Parliament and of the Council of 14 December 2022 on

foreign subsidies distorting the internal market (OJ L 330, 23.12.2022, p. 1, ELI:

http://data.europa.eu/eli/reg/2022/2560/oj). 46 Council Regulation (EC) No 139/2004 of 20 January 2004 on the control of concentrations between

undertakings (OJ L 24, 29.1.2004, p. 1, ELI: http://data.europa.eu/eli/reg/2004/139/oj).

EN 25 EN

prevent the circumvention of the Regulation’s provisions, where no alternative

measures are reasonably available. To ensure the proportional application of

conditions prescribed to investments made by the foreign investor’s subsidiary, the

Commission should have the opportunity to assess the notification and request the

Investment Authority to prescribe certain conditions. Apart from review of foreign

direct investments made by the foreign investor’s subsidiary as established by this

Regulation, investments coming from other Union Member States should not be

conditioned or deterred.

(34) It is necessary to ensure a lasting link between the foreign investor and the Union

target, whether it is carried out directly by a foreign investor or through an entity

established in the Union and controlled by a foreign investor. However, that should

not apply to the acquisition of company securities that are intended purely for financial

investment and without any intention to influence the management or control of the

company (‘portfolio investments’).

(35) Restructuring operations within a corporate group and investments made in financial

institutions in application of a resolution tool as well as of write down and conversion

powers should fall outside of the scope of this Regulation. Internal restructurings

should only be excluded from the scope of application to the extent that they are

conducted solely for the purpose of the internal reorganisation of a Union target or of

the corporate group to which the Union target belongs, without resulting in any

changes in the beneficial ownership or control of the Union target. In particular,

internal restructurings should be excluded where they do not result in a situation where

a new foreign investor acquires ownership or control over the Union target or over a

company that directly or indirectly owns or controls that Union target, where there is

an increase in the shares held by foreign investors, or where the transaction results in

additional rights for foreign investors that may lead to a change in the effective

participation of one or more foreign investors in the management or control of the

Union target.

(36) The foreign direct investment criteria should only apply to emerging strategic sector

foreign direct investments reaching an investment value threshold that is able to

disrupt the functioning of the internal market. A threshold of EUR 100 million should

be considered as having potential for to impact the well-functioning of the internal

market in emerging strategic sectors. Such foreign direct investment covered by the

scope of this Regulation would bear high risk on the security and environmental

sustainability of the Union, while not producing enough added value including

ensuring Union contribution in the investment, enhancement of the Union’s

technological development, employment of Union workers and contribution to Union

value chains for the internal market without compliance with the harmonised

conditions.

(37) In order to ensure the effective application of this Regulation, each Member State

should designate an investment authority responsible for assessing the conditions of

investment by foreign entities in emerging strategic sectors. Moreover, it should be

equipped with the legal, administrative, and financial resources to carry out its tasks

effectively and independently, with due regard to the authorities already responsible

for implementing Regulation (EU) 2019/452.

(38) To enable Member States to effectively identify the investments defined in this

Regulation, foreign investors should notify competent authorities prior to acquiring or

establishing significant stakes in undertakings or assets within the Union. Setting a

EN 26 EN

threshold at 30 percent ownership or other rights establishing control for both

undertakings and assets should ensure that the mechanism captures investments

capable of impacting the well-functioning of the internal market.

(39) To minimise the risk of circumvention through fragmented or indirect acquisitions,

where several foreign investors act in concert, or where investments are made through

affiliated entities or complex ownership structures, their respective interests should be

aggregated by the Investment Authority for the purpose of determining the investment

value and the notification threshold. Aggregation should also apply to existing

holdings in the same Union undertaking or asset, whether direct or indirect, individual

or joint, to ensure that successive transactions leading to significant influence or

control are duly notified.

(40) In order to ensure Union participation in large foreign direct investments originating

from third countries having a significant global position, this Regulation should

establish limits on the extent of ownership and control that foreign investors can

acquire in Union undertakings and assets. Accordingly, foreign investors should not,

whether directly or indirectly, establish, acquire, hold, or exercise ownership interests

exceeding 49% of the share capital, voting rights, or equivalent ownership interests in

any Union target, nor establish or obtain equivalent ownership, leasehold, or other

rights conferring control over a Union asset.

(41) To ensure that foreign investors and Union entities cooperate in emerging strategic

sectors while ensuring sufficient participation of Union partners, joint venture

requirements should be prescribed, which should include contractual arrangements. In

the joint venture, the foreign investor should not hold more than 49 % of the share

capital, voting rights, or equivalent ownership interests or other rights conferring

control in any of the Union entities participating in the joint venture. That condition

should also contribute to the strategic autonomy of the Union and ensure value added

to the internal market.

(42) It is necessary to assess, as part of the conditions for approval of a foreign direct

investment, whether the transfer of technology can contribute to achieving the

objectives of this Regulation. To that end, the foreign investors should be encouraged

to license to the Union Target, the joint venture or the legal entity acquiring or owning

the Union asset the relevant intellectual property rights, and know-how, which are

necessary for carrying out the concerned economic activity in the context of the

foreign direct investment. Appropriate intellectual property licensing agreement(s)

should therefore be granted by the foreign investor to the Union Target, the joint

venture or the legal entity acquiring or owning the Union asset. The scope and

conditions of these agreements, such as the exact IP rights concerned, the exclusive

nature of the license, the duration of the license or confidentiality-preserving

measures, should be appropriate to the circumstances and to the objective pursued

under this Regulation and the relevant investment. The foreign investor should commit

to granting the appropriate licenses of intellectual property rights and relevant know-

how they hold, as required for the economic activity concerned. That could be

achieved by providing a description of the main aspects of the possible licensing

agreements, on a confidential basis, with the Investment Authority.

(43) Where the Union Target or the legal entity acquiring or owning the Union asset owns

intellectual property rights in an invention, a work or any other asset subject to

intellectual property protection prior to the foreign investment, those intellectual

property rights should fully and exclusively remain under the control of the Union

EN 27 EN

Target or the legal entity acquiring or owning the Union asset. The foreign investor

should not claim any intellectual property right nor undertake any activity that would

affect the ability of the Union Target or the legal entity acquiring or owning the Union

asset to own and exercise the intellectual property rights on their inventions, works,

trademarks, designs or any other relevant asset obtained prior to the foreign

investment. Where an invention, a work or any other asset subject to intellectual

property protection is the result of a collaborative work between the Union Target or

the legal entity acquiring or owning the Union asset and the foreign investor or as a

result of the joint venture, the intellectual property rights should be owned jointly by

the foreign investor, the Union Target or the legal entity acquiring or owning the

Union asset, depending on the circumstances. The conditions accompanying the co-

ownership of intellectual property rights should, to the extent possible, be defined and

communicated to the Investment Authority, ahead of the approval of the foreign direct

investment. These conditions should include clarifications as to the possibility for one

co-owner to grant a licence and start infringement procedures as well as the financial

agreements as regards the filing and registration of intellectual property rights and

licensing agreements. In the case of a joint venture without a legal personality,

clarifications should be provided to the Investment Authority regarding the ownership

of intellectual property.

(44) It is necessary to ensure that the foreign investors’ expertise of the large foreign direct

investment under the scope of this Regulation should contribute to enhancing the

Union’s technological development both within and outside the Union Target, the joint

venture or the legal entity acquiring or owning the Union asset. To that end, foreign

investors should invest in research and development projects to be executed within the

Union while ensuring that the Union will benefit from the results produced. It is

therefore necessary to assess, as part of the conditions to be considered for having a

foreign direct investment approved, whether the foreign investors’ research and

development investments are adequate to achieve that objective. Such investments

could be directed to the benefit of research institutions established in the Union,

including in the context of joint projects with the Union Target, the joint venture or the

legal entity acquiring or owning the Union asset. Those investments could also be

made within the Union target, the joint venture or the legal entity acquiring or owning

the Union asset, for developing or executing specific research and development

activities. These investments could also consist in the training of Union workers, or

direct or indirect financial support to research and development projects within the

Union Target, the joint venture or the legal entity acquiring or owning the Union asset.

Any assessment performed in relation to investments in research and development

projects to be executed within the Union should be without prejudice to Union

competition law instruments, including Regulations (EU) 2022/2560 and (EC) No

139/2004.

(45) To promote sustainable integration of investments by foreign entities to the internal

market and the development of skills in emerging strategic sectors, and to ensure

meaningful social contribution at the place of the investment, such investments should

employ a proportion of Union workers and should provide appropriate training and

capacity-building measures, involving education and training providers, as well as

social partners. The foreign investor should ensure that the thresholds established in

this Regulation are fulfilled across all categories of workforce, including the

operational, technical, supervisory, and managerial positions.

EN 28 EN

(46) To strengthen the industrial capacity of emerging strategic sectors and to integrate

foreign direct investment into the Union’s industrial ecosystem, a certain share of

inputs manufactured in the Union should be included in products placed on the Union

market by such investments.

(47) In order to ensure that foreign direct investments fulfil at least 4 of the 6 conditions

established by this Regulation, the competent Investment Authority should examine

each notification and issue a reasoned decision on its approval or rejection. Investment

Authorities should establish the fulfilment of the conditions, or as appropriate, the

intent of the foreign investor to comply with the conditions. Such investments should

not be implemented without the explicit approval of the Investment Authority.

Accordingly, foreign investors should comply with a set of conditions before starting

their economic activity regarding the relevant foreign direct investment. Investment

Authorities should decide in a timeframe ensuring both procedural efficiency and legal

certainty. Where justified by the complexity of the case or the need for additional

information, that timeframe could be extended, for justified and duly substantiated

reasons.

(48) Member States should inform the Commission about notifications received to allow

the Commission to effectively monitor the investment landscape and ensure a

harmonised investment framework across the internal market.

(49) In order to ensure the horizontal application of this Regulation in the internal market,

the Commission should be able to provide an opinion on whether the investment

fulfils the conditions set out in this Regulation. Such opinion should be made publicly

available. If the Investment Authority intends to diverge from the Commission opinion

in its decision, it should extend the approval process for two additional months in

order to properly assess the Commission's arguments. When taking a decision,

Member States should justify how they took the Commission’s opinion into account.

(50) In order to ensure the horizontal application of this Regulation on the Single Market,

the Commission should be able to review foreign direct investments, based on its own

initiative or on the initiative of a Member State affected by the foreign direct

investment. That should be particularly the case for investments where several

member states are impacted, as well as high value investments and investments with

particular strategic importance for the Union due to their effect on the Single Market.

(51) The Investment Authorities should not only ensure compliance with the conditions at

the time of the foreign direct investment’s notification, but also throughout its

operation, as appropriate, to ensure that the benefits of the foreign direct investment

are maximised on the internal market.

(52) To ensure that foreign direct investment criteria for the emerging strategic sectors

remain appropriate even as market conditions, technological developments and the

competitiveness policy objectives of the Union continue to evolve, the Commission

should monitor the global manufacturing trends of strategic sectors and be empowered

to adopt implementing acts imposing foreign investment criteria to additional strategic

sectors. The Commission should assess in particular the threshold value, as well as

whether all of the investment criteria referred to in this regulation are appropriate and

necessary to meet the objectives of this regulation.

(53) Clustering industrial activity can contribute substantially to achieving the objectives of

this Regulation and to strengthening certain strategic sectors in the internal market. It

is therefore appropriate to promote the development of industrial manufacturing

EN 29 EN

acceleration areas. Such areas should be limited in geographical scope in order to

foster industrial symbiosis. When designating the areas, Member States should, in

cooperation with regional authorities where appropriate, take into account industrial

production (in particular for certain strategic sectors) and their regions’ general level

of development, with a focus on the less developed regions and those in transition.

Furthermore, in order to strengthen the resilience, strategic autonomy and

competitiveness of the Union’s industrial base, the designation of industrial

manufacturing acceleration areas should align with strategic projects and other Union

initiatives such as Net-Zero Acceleration Valleys.

(54) The industrial acceleration measures within the acceleration areas should seek

appropriate synergies with other Union initiatives, including strategic projects

recognised in Union legislation, Net-Zero Acceleration Valleys and Union funding

opportunities, in order to align the strategic priorities in the internal market and benefit

industrial installations vital for the strategic autonomy and competitiveness of the

Union. Those benefits should also apply to undertakings awarded with the

competitiveness seal under Regulation (EU) XXXX/[XX] 47 (European

Competitiveness Fund), unless specifically excluded by the Member State.

(55) To enable an adequate supply of critical raw materials for projects in the acceleration

areas, the European Critical Raw Materials Board established by Article 35 of

Regulation (EU) 2024/1252 should provide a platform to exchange information on

critical raw materials related supply chain bottlenecks in the acceleration areas. It

should be possible for projects in relevant areas to benefit from the Joint purchasing

mechanism established in Article 25 of Regulation (EU) 2024/1252 to aggregate their

demand for strategic raw materials and increase their negotiating power with potential

sellers, especially when they contain small or medium-sized enterprises (SMEs) and

small mid-cap companies (SMCs).

(56) Sufficient and timely energy supply to the acceleration areas constitutes a fundamental

enabling condition for their effective deployment and for the development of

manufacturing activities. Reliable and accurate information on future energy demand

contributes to cost-effective grid development. Member States should therefore

prepare an analysis for each acceleration area, identifying its future energy needs.

Such analysis should serve the purpose of providing information for the national grid

planning thereby contributing to purposeful anticipatory grid investments and faster

energy connections for the acceleration area. When defining the scope, Member States

should take into account the availability of relevant transport and network

infrastructure. The results of these assessments should be reflected in national network

development plans to adequately capture future points of energy demand in upcoming

grid planning.

(57) Where industrial manufacturing acceleration areas are set up, their designation should

correspond to the potential to access or organise education and training opportunities

to ensure the availability of skilled labour.

(58) To promote the development of industrial manufacturing acceleration areas and to

expedite the permit-granting procedures necessary for industrial activities within those

47 Proposal for a Regulation of the European Parliament and of the Council on establishing the European

Competitiveness Fund ('ECF’), including the specific programme for defence research and innovation

activities, repealing Regulations (EU) 2021/522, (EU) 2021/694, (EU) 2021/697, (EU) 2021/783,

repealing provisions of Regulations (EU) 2021/696, (EU) 2023/588, and amending Regulation (EU)

(COM/2025/555 final, 16.7.2025).

EN 30 EN

areas, Member States should establish an aggregated baseline permit reflecting the

specific characteristics of each identified industrial acceleration area and tailored to the

industrial manufacturing sector or sectors to be deployed therein. That aggregated

baseline permit issued by public authorities should cover the permits commonly

required for such activities within the area, excluding those permits that are

installation specific, such as those required under Directive 2010/75/EU of the

European Parliament and of the Council48 and the grid connection permit.

Consequently, project promoters should be required to obtain additional permits only

for activities not covered by the aggregated baseline permit as well as environmental

assessments where required. In case of activities potentially affecting Union and

nationally protected sites, relevant permits should be granted only after having ensured

that the activities are compatible with the conservation objectives of these sites. Such

approach should significantly accelerate permit-granting procedures and reduce the

administrative burden associated with them whilst maintaining high level of

environmental standards.

(59) In order to establish a framework to ensure the Union’s strategic autonomy and

economic security through access to a secure, sustainable and resilient supply of

relevant manufacturing products, the power to adopt acts in accordance with Article

290 TFEU should be delegated to the Commission in respect of changes to the list of

third countries whose content is not treated as equivalent to Union origin, the

introduction or amendment of Union origin and low-carbon requirements, including

for additional net-zero technologies and for products and services listed in Annexes II

and III, laying down Union-level demand-side measures for products from the

chemical industry, taking into account, among others, recommendations from the

Critical Chemicals Alliance, the extension of foreign direct investment criteria to

additional emerging strategic sectors, the specification of common procedural rules for

foreign direct investment criteria, and establishing classification systems based on the

greenhouse gas intensity for products. It is of particular importance that the

Commission carries out appropriate consultations during its preparatory work,

including at expert level, and that those consultations be conducted in accordance with

the principles laid down in the Inter-institutional Agreement of 13 April 2016 on

Better Law-Making49. In particular, to ensure equal participation in the preparation of

delegated acts, the European Parliament and the Council receive all documents at the

same time as Member States’ experts, and their experts systematically have access to

meetings of Commission expert groups dealing with the preparation of delegated acts.

(60) In order to ensure uniform conditions for the implementation of this Regulation,

implementing powers should be conferred on the Commission as regards specifying

the method for calculating the proportion of volume of products and components

originating in the Union and for verifying the compliance with the conditions laid

down in Article 15. Those powers should be exercised in accordance with Regulation

(EU) No 182/2011 of the European Parliament and of the Council50.

48 Directive 2010/75/EU of the European Parliament and of the Council of 24 November 2010 on

industrial emissions (integrated pollution prevention and control) (OJ L 334, 17.12.2010, p. 17, ELI:

http://data.europa.eu/eli/dir/2010/75/oj). 49 OJ L 123, 12.5.2016, p. 1, http://data.europa.eu/eli/agree_interinstit/2016/512/oj. 50 Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011

laying down the rules and general principles concerning mechanisms for control by the Member States

of the Commission's exercise of implementing powers (OJ L 55, 28.2.2011, p. 13, ELI:

http://data.europa.eu/eli/reg/2011/182/oj).

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(61) The Commission should evaluate this Regulation based on the information provided

by Member States. Pursuant to paragraph 22 of the Interinstitutional Agreement on

Better Law-Making of 13 April 2016, such evaluation should be based on the five

criteria of efficiency, effectiveness, relevance, coherence and Union value added. It

should also serve as the basis for impact assessments of possible further measures.

(62) To ensure compliance with the obligations laid down in this Regulation, Member

States should provide for penalties to be imposed on undertakings that do not comply

with their obligations. Such penalties should be without prejudice and in addition to

specific penalty requirements set out by this Regulation, for instance on foreign direct

investments. It is therefore necessary that Member States lay down effective,

proportionate and dissuasive penalties in national law for failure to comply with this

Regulation. It is also necessary for Member States to ensure that project promoters

have access, where relevant, to administrative or judicial review in accordance with

national law.

(63) When reviewing this Regulation, the Commission should assess the need to amend the

provisions included in Chapters III and IV. In particular, it should consider introducing

targeted Union origin in transport sectors critical to the Union’s economic security,

notably building of ships and building of rail rolling stock. The Commission should

also consider introducing an enhanced review of foreign direct investments for

aeronautical products and parts.

(64) Regulation (EU) 2018/1724 of the European Parliament and of the Council51, which

established the Single Digital Gateway, provides general rules for the online provision

of information, procedures and assistance services that are relevant to the functioning

of the internal market. In order to allow businesses and manufacturing industry project

promoters, including for cross-border projects, to directly enjoy the benefits of the

internal market without incurring an unnecessary additional administrative burden, the

information that needs to be submitted to any relevant authorities as part of the permit-

granting process under this Regulation is that set out in Annex I to Regulation (EU)

2018/1724. The related procedures are included in Annex II to that Regulation to

ensure that project promoters can benefit from fully online procedures and the Once-

Only Technical System Services. In particular, promoters of manufacturing industry

projects should be able to fully access and complete any procedure related to the

permit-granting process online, in accordance with Article 6(1) of Regulation (EU)

2018/1724 and Annex II of that Regulation. Regulation (EU) 2018/1724 should

therefore be amended accordingly.

(65) Regulation (EU) 2024/1735 introduces resilience requirements for a range of net-zero

technology final products. Those requirements aim at reducing dependencies on

individual third countries of supply, but they are not sufficient to enable Union

industries to scale up the potential of the internal market and carry a risk of

circumvention. Therefore, in order to address such challenges, the legislative

framework should ensure the need to attract and retain technological know-how within

the Union, through targeted additional intervention.

(66) The provisions on public procurement laid down in this Regulation should build on the

provisions of Regulation (EU) 2024/1735 on resilience; and complement them by

51 Regulation (EU) 2018/1724 of the European Parliament and of the Council of 2 October 2018

establishing a single digital gateway to provide access to information, to procedures and to assistance

and problem-solving services and amending Regulation (EU) No 1024/2012 (OJ L 295, 21.11.2018, p.

1, ELI: http://data.europa.eu/eli/reg/2018/1724/oj).

EN 32 EN

introducing additional requirements for battery energy storage systems, solar

photovoltaic technologies, heat pumps, onshore and offshore wind technologies,

electrolysers and nuclear fission energy technologies. Such additional requirements

should ensure that a certain share of the products and their main specific components

originate in the Union. That approach should ensure sufficient diversification while

strengthening strategic manufacturing capacity and technological sovereignty within

the Union. The system for verification of compliance with the requirements should

limit the administrative burden and align with common public procurement practice as

well as the existing system of verification of compliance under Regulation (EU)

2024/1735. It should therefore rely on a self-declaration by economic operators.

(67) In addition to complementing the public procurement provisions of Regulation (EU)

2024/1735, this Regulation should also amend them to provide greater legal certainty.

The scope of Article 25 of Regulation (EU) 2024/1735 should be limited to those net-

zero technologies for which public procurement of a relevant scale is expected to take

place, thereby enhancing the clarity of the provision.

(68) In line with the same policy objective pursued for renewable energy auctions under

Regulation (EU) 2024/1735, this Regulation should extend the additional Union origin

requirements to renewable energy auctions for certain renewable energy technologies,

in order to contribute to strengthening the Union’s industrial base and ensuring

resilience of net-zero technology supply chains. To reflect the specific characteristics

of renewable energy auctions, the additional requirements should apply to the net-zero

technologies that are most relevant in the context of auctions, which are battery energy

storage systems, solar photovoltaic technologies, electrolysers, as well as on- and

offshore wind technologies. Where Union origin requirements apply to auctions, other

provisions setting similar requirements for public support schemes should not apply to

those auctions.

(69) To reinforce the effectiveness of the framework, and to reflect recent increases in

geopolitical risks and global market distortions, the share of auctions covered by the

requirements should be increased and a higher cost threshold for the opt-out from

those requirements should be established. That should also prevent excessive use of

exemptions and provide an effective incentive to boost Union production of renewable

energy technologies.

(70) Businesses and households are an essential part of the demand for net-zero

technologies in the Union. Public support schemes designed to support consumer

demand for such products are important tools for strengthening the Union’s economic

security and accelerating the green transition. In order to build on the provisions of

Regulation (EU) 2024/1735 on resilience, it is necessary to complement those

provisions introducing additional requirements for battery energy storage systems,

solar photovoltaic technologies and heat pumps. Such additional requirements should

ensure that certain main specific components and, in some cases, the whole final

product, originate in the Union. That approach is in line with the general objective of

support schemes to promote socially-desirable outcomes, in view of making progress

on the ambitions of the European Pillar of Social Rights as well as environmental and

climate objectives. Furthermore, it should ensure sufficient diversification while

strengthening strategic manufacturing capacity and technological sovereignty within

the Union. Public authorities in charge of support schemes should have the possibility

either to condition the eligibility of the scheme to the fulfilment of the requirements,

or to grant additional financial compensation when the requirements are fulfilled. In

the latter case, the additional financial compensation should have an incentivising

EN 33 EN

effect. However, if State aid is involved, the additional financial compensation should

not exceed the applicable maximum aid intensity.

(71) Digital technologies continue to transform the way we generate, distribute, and

consume energy. Such digital evolution, while presenting unprecedented

opportunities, has also introduced complexity and interdependence within modern

energy systems, which are now susceptible to a growing array of cyber threats. The

integration of digital technologies into energy systems increases the attack surface for

malicious actors, who can exploit vulnerabilities to disrupt operations, steal sensitive

data, or manipulate energy markets. Such disruptions not only threaten the security

and stability of our energy infrastructure and continuous supply of energy but also

have cascading effects on all sectors of the economy that rely on stable energy inputs.

Furthermore, energy system disruptions could undermine investor confidence and

deter investment in essential modernisation and decarbonisation efforts. Therefore,

safeguarding the cybersecurity of these systems is paramount to ensuring economic

security, maintaining trust, and fostering resilience against future challenges.

(72) To ensure a high level of cybersecurity, it is necessary to prevent high-risk suppliers,

as identified in accordance with [the proposal for a revised Cybersecurity Act] from

supplying critical components to bidders of renewable energy auctions, tenderers of

public procurement procedures, and final products supported by government

intervention in the scope of this Regulation.

(73) Furthermore, the cybersecurity provisions of Article 26 of Regulation (EU) 2024/1735

should not only apply to 30%, but to all renewable energy auctions in light that

cybersecurity is essential to the stability and integrity of the Union’s energy system as

a whole. A gap even in just one element of an energy system’s cybersecurity could

endanger the stability of the whole system. In addition to the high level of

cybersecurity ensured in critical sectors by Directive (EU) 2022/2555 and in products

with digital elements under Regulation (EU) 2024/2847, extending the scope of the

cybersecurity requirements of Regulation (EU) 2024/1735 to all renewable energy

auctions should further reduce the vulnerabilities of the Union’s energy system and

contribute to securing energy and economic stability.

(74) The application of the requirements on Union origin and cybersecurity for net-zero

technologies should complement the requirements on sustainability and resilience set

out in Regulation (EU) 2024/1735. They should therefore be inserted in that

Regulation to ensure consistency and simplify implementation by the relevant

authorities.

(75) In line with the measures for public procurement, auctions and public support

schemes, this Regulation should also complement Regulation (EU) 2024/1735 with

Union origin requirements for Member State support to the construction of nuclear

power plants and to the manufacturing of hydrogen electrolysers. To secure long term

Union sovereignty, energy security, and sector resilience, it is essential that the new

nuclear plants, both large scale reactors and small modular reactors, prioritise as much

as possible Union sourced technologies and components while maintaining the highest

quality standards. Such strategy will not only boost domestic capabilities but also

position the Union as a reliable, competitive player in the global nuclear market.

However, in order to prevent risks related to technological lock-in, the Union origin

requirements for nuclear power plants should only apply to new-builds, excluding

refurbishments and lifetime extensions of existing nuclear power plants.

(76) Regulation (EU) 2024/1735 should therefore be amended accordingly.

EN 34 EN

(77) Hydrogen is a crucial energy carrier for the energy transition in many industry

applications and is instrumental in driving the transition to cleaner energy systems. To

accommodate the emergence of gigawatt scale electrolyser deployments in the Union,

it is essential to have a concerted, enhanced support system is essential.

(78) Where Union origin requirements require that a certain number of components should

originate in the Union without specifying which ones, the choice should be left to the

economic operators. This ensures sufficient competition among suppliers of the

required components and enables economic operators to make the most cost-efficient

choices while applying the requirements.

(79) Regulation (EU) 2024/3110 empowers the Commission to adopt delegated acts to

establish environmental sustainability labelling requirements for specific product

categories and families of construction products, provided that a product is typically

chosen by consumers and does not have a different overall environmental performance

over its life cycle depending on its installation. Such strict conditions should be

removed in order to enable the Commission to set requirements for the labelling of

construction products on the basis of their carbon intensity, including for those

products that are not typically sold to end consumers. Regulation (EU) 2024/3110

should therefore be amended accordingly.

(80) To the extent that any of the measures envisaged by this Regulation constitute State

aid, the provisions concerning such measures are without prejudice to the application

of Articles 107 and 108 TFEU.

(81) Since the objective of this Regulation, namely to support resilient and decarbonised

industrial production, cannot be sufficiently achieved by the Member States and can

rather, by reason of the scale or effects of the action, be better achieved at Union level,

the Union may adopt measures in accordance with the principle of subsidiarity as set

out in Article 5 of the Treaty on European Union. In accordance with the principle of

proportionality as set out in that Article, this Regulation does not go beyond what is

necessary in order to achieve that objective,

HAVE ADOPTED THIS REGULATION:

CHAPTER I

GENERAL PROVISIONS

Article 1

Subject matter and scope

1. This Regulation aims at improving the functioning of the internal market by

establishing a framework to support the development, competitiveness and resilience

of the Union's manufacturing sector, with a focus on selected strategic sectors, while

contributing to the Union’s climate objective, economic security and the creation,

retention of, and transition into high-quality jobs.

2. To achieve the general objective referred to in paragraph 1, this Regulation lays

down measures aiming to

(a) speed-up permit-granting procedures for industrial manufacturing projects,

including energy-intensive industry decarbonisation projects;

EN 35 EN

(b) create lead market for certain products in strategic sectors, by laying down

Union origin requirements, low-carbon requirements, or both, in the context of

public procurement, public support schemes;

(c) set conditions on foreign direct investments in emerging strategic sectors;

(d) designate industrial manufacturing acceleration areas by Member States for the

purposes of boosting industrial activities.

Article 2

Industrialisation objective

The Union and Member States shall seek to ensure that by 2035 the manufacturing industry of

the Union accounts for at least 20% of the Union’s gross domestic product.

Article 3

Definitions

For the purposes of this Regulation, the following definitions apply:

(1) ‘industrial manufacturing project’ means the construction, conversion or extension of

an industrial site intended for carrying out an economic activity classified under

NACE Code C (Manufacturing), with the exception of NACE Code C12;

(2) ‘energy- intensive industries’ means the industries listed in point 1 of Annex I;

(3) ‘energy‘energy-intensive industry decarbonisation projects’ means the construction

or conversion of the commercial facility of an energy-intensive business as defined

in Article 17(1), point (a), of Council Directive 2003/96/EC52 in the energy-

intensive industries listed in point 1 of Annex I to this Regulation that reduce

emission rates of CO2 -eq of industrial processes significantly and permanently to an

extent which is technically feasible;

(4) ‘permit-granting procedure’ means a process that covers all relevant permits to build,

expand, convert and operate industrial manufacturing projects, including building,

chemical and grid connection permits as defined in Article 1 of [the Proposal for a

Directive amending Directives (EU) 2018/2001, (EU) 2019/944, (EU) 2024/1788 as

regards acceleration of permit-granting procedures53], and environmental

assessments and authorisations where required, and encompassing all applications

and procedures from the acknowledgement that the application is complete to the

notification of the comprehensive decision on the outcome of the procedure;

(5) ‘comprehensive decision’ means the decision or set of decisions taken by a Member

State authority or authorities, that determines whether or not a project promoter is

authorised to build, expand, convert and operate an industrial manufacturing project;

52 Council Directive 2003/96/EC of 27 October 2003 restructuring the Community framework for the

taxation of energy products and electricity (OJ L 283, 31.10.2003, pp. 51–70,

ELI: http://data.europa.eu/eli/dir/2003/96/oj). 53 Proposal for a Directive of the European Parliament and of the Council amending Directives (EU)

2018/2001, (EU) 2019/944, (EU) 2024/1788 as regards acceleration of permit-granting procedures

((2025/0400 (COD)).

EN 36 EN

(6) ‘contract’ means public contract as defined in Article 2(1), point (5), of Directive

2014/24/EU54, supply, works and service contracts as defined in Article 2, point (1),

of Directive 2014/25/EU55, and concessions as defined in Article 5, point (1), of

Directive 2014/23/EU;

(7) ‘contracting authority’ means a contracting authority as defined in Article 6 of

Directive 2014/23/EU, Article 2(1), point (1), of Directive 2014/24/EU and Article 3

of Directive 2014/25/EU;

(8) ‘contracting entity’ means a contracting entity as defined in Article 7 of Directive

2014/23/EU and Article 4 of Directive 2014/25/EU;

(9) ‘economic operator’ means the manufacturer, the authorised representative, the

importer, the distributor, the dealer and the fulfilment service provider and, for the

purposes of public procurement procedures, it means economic operator as set out in

Article 5, point (2), of Directive 2014/23/EU, Article 2(1), point (10), of Directive

2014/24/EU and Article 2, point (6), of Directive 2014/25/EU;

(10) ‘public procurement procedure’ means either of the following:

(a) a procedure for the award of works or a service concession covered by

Directive 2014/23/EU;

(b) any type of award procedure covered by Directive 2014/24/EU for the

conclusion of a public contract or Directive 2014/25/EU for the conclusion of a

supply, works and service contract;

(11) ‘greenhouse gas intensity’ means emissions (measured in tCO2eq) released during

the production of industrial products referred to in Article 10(2);

(12) ‘manufacturer’ means any natural or legal person that manufactures a product or that

has a product designed or manufactured, and markets that product under their name

or trademark;

(13) ‘system boundary’ means the group of chemical or physical processes included in the

calculation of the greenhouse gas intensity of products;

(14) ‘precursor’ means any input material into a production process that is part of the

system boundaries.

(15) ‘chemical industry’ means activities classified under NACE Rev. 2, Code C20

(Manufacture of chemicals and chemical products), carried out by manufacturers

established in the Union;

(16) ‘sustainable carbon sources’ means biomass that complies with the sustainability

criteria laid down in Article 29 of Directive (EU) 2018/2001, waste and carbon from

capturing carbon dioxide emissions.

(17) ‘substance’ means substance as defined in Article 2, point (7), of Regulation (EC) No

1272/2008;

54 Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public

procurement and repealing Directive 2004/18/EC (OJ L 94, 28.3.2014, pp. 65–242,

ELI: http://data.europa.eu/eli/dir/2014/24/oj). 55 Directive 2014/25/EU of the European Parliament and of the Council of 26 February 2014 on

procurement by entities operating in the water, energy, transport and postal services sectors and

repealing Directive 2004/17/EC (OJ L 94, 28.3.2014, pp. 243–374,

ELI: http://data.europa.eu/eli/dir/2014/25/oj).

EN 37 EN

(18) ‘mixture’ means a mixture as defined in Article 2, point (8), of Regulation (EC) No

1272/2008;

(19) ‘made available on the market’ means any supply of a product for distribution,

consumption or use on the Union market during a commercial activity, whether

against payment or free of charge;

(20) ‘fuel cell vehicle’ or ‘FCV’ means a vehicle equipped with a powertrain containing

exclusively energy converters transforming chemical energy (input) into electrical

energy (output), or vice versa, and electric machines as propulsion energy converters;

(21) ‘motor vehicle’ means any vehicle of categories M and N referred to in Article 4(1),

points (a) and (b), of Regulation (EU) 2018/858 of the European Parliament and of

the Council56;

(22) 'off-vehicle charging hybrid electric vehicle' or 'OVC-HEV' means a vehicle

equipped with a powertrain containing at least two different categories of propulsion

energy converters where one of the propulsion energy converters is an electric

machine that can be charged from an external source';

(23) ‘pure electric vehicle’ or ‘PEV’ means a vehicle equipped with a powertrain

containing exclusively electric machines as propulsion energy converters and

exclusively rechargeable electric energy storage systems as propulsion energy

storage systems;

(24) ‘main specific components’ means the main specific components as listed in the

Annex to Commission Implementing Regulation 2025/117857;

(25) ‘vehicle’s traction battery’ means the electric vehicle battery specifically designed to

provide electric power for traction as defined in Article 3(14) of Regulation (EU)

2023/154258.

(26) ‘e-powertrain components’ means power electronics, transport propulsion electric

motors and e-axles and their components, rotors and stators;

(27) ‘main electronic systems’ means advanced driver assistance systems (including

lidars, radars, sensors, cameras, ECUs and integration platforms), central computing

units, wireless access systems, in-vehicle infotainment head units and chassis

electronics;

(28) ‘vehicle component’ means any part of a vehicle, including processed material;

(29) ‘assembled’ means the process of the final assembly of the vehicle;

(30) ‘vehicle manufacturer’ means a natural or legal person who is responsible for all

aspects of the type-approval of a vehicle, system, component or separate technical

unit, or the individual vehicle approval, or the authorisation process for parts and

56 Regulation (EU) 2018/858 of the European Parliament and of the Council of 30 May 2018 on the

approval and market surveillance of motor vehicles and their trailers, and of systems, components and

separate technical units intended for such vehicles, amending Regulations (EC) No 715/2007 and (EC)

No 595/2009 and repealing Directive 2007/46/EC (OJ L 151, 14.6.2018, p. 1, ELI:

http://data.europa.eu/eli/reg/2018/858/oj). 57 Commission Implementing Regulation (EU) 2025/1178 of 23 May 2025 on laying down rules for the

application of Regulation (EU) 2024/1735 of the European Parliament and of the Council as regards the

list of net-zero technology final products and their main specific components for the purposes of

assessing the contribution to resilience (OJ L, 2025/1178, 18.6.2025, ELI:

http://data.europa.eu/eli/reg_impl/2025/1178/oj). 58

EN 38 EN

equipment, for ensuring conformity of production and for market surveillance

matters regarding that vehicle, system, component, separate technical unit, part and

equipment produced, irrespective of whether or not that person is directly involved in

all stages of the design and construction of that vehicle, system, component or

separate technical unit concerned;

(31) ‘foreign direct investment’ means an investment, including greenfield investments,

into a Union target or a Union asset by a foreign investor or by the foreign investor’s

subsidiary aiming to establish or to maintain lasting and direct links between the

foreign investor and the entrepreneur to whom or the undertaking to which the

capital is made available, or at using an Union asset, in order to carry on an

economic activity in a Member State, including investments which enable effective

participation in the management or control of a company carrying out an economic

activity;

(32) ‘foreign investor’ means a natural person of a third country who does not hold the

nationality of a Member State or an undertaking of a third country, intending to make

or having made a foreign direct investment;

(33) ‘foreign investor’s subsidiary’ means an undertaking controlled, directly or

indirectly, by a foreign investor regardless of its place of establishment;

(34) ‘Union target’ means an undertaking established under the laws of a Member State;

(35) ‘Union asset’ means an immovable asset used or intended to be used for

manufacturing products in the territory of the Union;

(36) ‘Union worker’ means any natural person who has an employment contract or

employment relationship as defined by law, a collective agreement or practice in

force in a Member State and is either a citizen of the Union or a third country

national legally residing in a Member State with a valid work permit at the moment

of recruitment;

(37) ‘portfolio investment’ means the acquisition of company securities that are intended

purely for financial investment and without any intention to influence the

management or control of the company;

(38) ‘turnover’ means the amount derived by an undertaking within the meaning of

Article 5(1) of Council Regulation (EC) No 139/200459;

(39) ‘active material’ means a material which reacts chemically to produce electric energy

when the battery cell discharges or to store electric energy when the battery is being

charged;

(40) ‘electric vehicle battery’ means an electric vehicle battery as defined in Article 3(1),

point (14), of Regulation (EU) 2023/1542 of the European Parliament and of the

Council60;

(41) ‘supplier’ means a manufacturer established in the Union, the authorised

representative of a manufacturer who is not established in the Union, or an importer,

who places a product on the Union market;

59 Council Regulation (EC) No 139/2004 of 20 January 2004 on the control of concentrations between

undertakings (OJ L 24, 29.1.2004, p. 1). 60 Regulation (EU) 2023/1542 of the European Parliament and of the Council of 12 July 2023 concerning

batteries and waste batteries, amending Directive 2008/98/EC and Regulation (EU) 2019/1020 and

repealing Directive 2006/66/EC (OJ L 191, 28.7.2023, p. 1, ELI:

http://data.europa.eu/eli/reg/2023/1542/oj).

EN 39 EN

CHAPTER II

ENABLING CONDITIONS FOR INDUSTRIAL PRODUCTION

AND DECARBONISATION

Article 4

Single access points

1. Member States shall set up a single access point at national level for the submission

by project promoters of the single application for industrial manufacturing projects

referred to in Article 5(1).

2. The single access points shall automatically attribute the permit applications to the

relevant authority, inform the applicant about all steps of the permit-granting

procedure, the status of the procedure and of the decisions of the relevant authorities,

and enable the applicant to check compliance with applicable deadlines. To that

effect the single access points shall use the European Business Wallets established

pursuant to [Proposal for a Regulation on the establishment of European Business

Wallets].

Through the use of European Business Wallets, the single access points shall enable:

(a) interoperability and automated data exchange between competent authorities;

(a) re-use of data and documents already held by public authorities;

(b) a high level of cybersecurity, and integrity of information;

(c) transparency and accountability of the permit-granting procedure.

3. When setting up the single access points, Member States shall, where appropriate,

make use of existing Union digital infrastructure, catalogues and building blocks

established by Union law.

Article 5

Permit-granting procedure

1. Member States shall establish a single permit-granting procedure based on a single

application covering all permits required for industrial manufacturing projects.

2. Member States shall designate a competent authority to coordinate the permit-

granting procedure referred to in paragraph 1 in order to ensure the adoption and

issue of a comprehensive decision within the applicable time limit.

3. No later than 45 days from the receipt of the application for a permit for industrial

manufacturing projects, the competent authority shall either acknowledge that the

application is complete or request any missing information needed to process the

application.

Where, after the submission of any missing information, the application is still

deemed to be incomplete, the competent authority may, within 30 days of the

submission of the requested missing information, make a second request for any

information still missing. The competent authority shall not request information in

areas not covered in the first request for additional information and shall request

further information only as necessary to cover the missing information.

EN 40 EN

4. The provisions of this Article shall not apply where rules to streamline the

administrative and permit-granting processes are established in other Union

legislative acts for specific industrial manufacturing sectors.

Article 6

Energy-intensive industry decarbonisation projects

1. Chapter II, Section II, of Regulation (EU) 2024/1735 shall apply to all energy-

intensive industry decarbonisation projects.

2. All energy-intensive industry decarbonisation projects shall be considered strategic

projects contributing to resilience and decarbonisation or resource efficiency for the

purposes of [Article 14 of Proposal for a Regulation on speeding-up environmental

assessment]. Points 1, 2 and 3 of the Annex in that Regulation shall apply.

CHAPTER III

STRENGTHENING THE UNION’S STRATEGIC INDUSTRIAL

VALUE CHAINS

Article 7

Union origin

1. For the purposes of this Chapter, content of Union origin refers to content originating

in the Union.

2. The origin of products and components shall be determined in accordance with

Regulation (EU) No 952/2013 of the European Parliament and of the Council.

Article 8

Content equivalent to Union origin in public procurement

1. With respect to the Union origin requirements referred to in Article 11, content

originating in third countries with which the Union has concluded an agreement

establishing a free trade area or a customs union, or that are parties to the Agreement

on Government Procurement, where relevant obligations of the Union exist under

that agreement, shall be deemed to be of Union origin.

2. The Commission shall adopt delegated acts in accordance with Article 30 to exclude,

in whole or in part, a third country from the scope of paragraph 1 based on any of the

following criteria:

(a) that third country has failed to provide national treatment related to Union

products or entities under the agreements referred to in paragraph 1 in relation

to any of the sectors listed in Annex I;

(b) such exclusion is justified to avoid dependencies or any other developments

that may threaten the security of supply in the Union of the products in

question;

(c) such exclusion is justified under any other exception under the applicable

agreement.

EN 41 EN

Article 9

Content equivalent to Union origin in other forms of public intervention

1. With respect to the Union origin requirements set out in Article 12, content

originating in third countries with which the Union has concluded an agreement

establishing a free trade area or a customs union shall be deemed to be of Union

origin.

2. The Commission shall adopt delegated acts in accordance with Article 30 to exclude,

in whole or in part, a third country from the scope of paragraph 1 based on any of the

following criteria:

(a) that third country has failed to provide national treatment related to Union

products or entities under the agreements referred to in paragraph 1 in relation

to any of the sectors listed in Annex I;

(b) such exclusion is justified to avoid dependencies or any other developments

that may threaten the security of supply in the Union of the products in

question;

(c) such exclusion is justified under any other exception under the applicable

agreement.

Article 10

Low-carbon products

1. For the purposes of this Chapter, a product covered by Annex II shall be considered

low-carbon when it complies with the requirements set out in delegated acts, as

follows:

(a) for construction products referred to in Regulation (EU) 2024/3110 and

covered by a harmonised technical specification or a European Technical

Assessment, the delegated acts adopted pursuant to Article 5(5) or Article

22(9) of Regulation (EU) 2024/3110;

(b) for all other products, delegated acts adopted pursuant to Article 4 of

Regulation (EU) 2024/1781, as applicable.

2. To support the creation of lead markets by informing investment decisions towards

products granted a lower greenhouse gas intensity performance class, the

Commission is empowered to adopt delegated acts in accordance with Article 30 in

order to supplement this Regulation by establishing voluntary classification systems

based on the greenhouse gas intensity for products manufactured through activities

listed in Annex I of Directive 2003/87/EC (‘industrial products’) when they are

placed on the Union market, to the extent that these products are not already

regulated by a Delegated Act under Regulation (EU) 2024/1781 or included in the

working plans adopted in accordance with that Regulation.

Emissions and all other relevant data used for the calculation of the greenhouse gas

intensity shall be verified by verifiers accredited under Commission Implementing

Regulation (EU) 2018/2067 of the European Parliament and of the Council61 or

verifiers accredited under the delegated acts adopted pursuant to Article 18 of

61 Commission Implementing Regulation (EU) 2018/2067 of 19 December 2018 on the verification of

data and on the accreditation of verifiers pursuant to Directive 2003/87/EC of the European Parliament

and of the Council (OJ L 334, 31.12.2018, pp. 94, ELI:

http://data.europa.eu/eli/reg_impl/2018/2067/oj).

EN 42 EN

Regulation (EU) 2023/956, as appropriate. Emissions shall be monitored in

accordance with the rules laid down in Chapter III of Commission Implementing

Regulation (EU) 2018/2066 and the data monitoring methods and quality

requirements set out in Annex VII to Delegated Regulation (EU) 2019/331. For

imported products, emissions may be monitored in accordance with Annex IV to

Regulation (EU) 2023/956 and the data monitoring methods and quality

requirements established by implementing acts adopted pursuant to Article 7(7),

point (a), of Regulation (EU) 2023/956, where it provides for an equivalent dataset.

Such delegated acts shall specify, as appropriate, the following elements:

(a) the identification of the product for which a manufacturer may apply for a label

on greenhouse gas intensity;

(b) the relevant system boundaries, covering emissions from the industrial

manufacturing process, emissions from relevant precursors and emissions from

electricity consumption. These emissions are considered independently of

whether these emissions occur in the manufacturer’s facility or in other

facilities, recognising that certain precursors might be acquired from other

installations;

(c) the methodology for the calculation of the greenhouse gas intensity of the

product

(d) a classification with performance classes;

(e) complementary rules concerning the governance of the label, including

competent entities; and

(f) complementary rules on accreditation, monitoring and verification,

In developing those rules, the Commission shall at least take into account:

(a) the latest applicable product benchmark values as defined under Directive

2003/87/EC;

(b) data already available under the EU ETS and CBAM;

(c) new Union rules concerning accounting for emissions, including from

electricity consumption, low-carbon fuels and renewable fuels of non-

biological origin;

(d) emerging low-carbon production technologies, as well as the estimated

emissions’ reduction potential of emerging technologies;

(e) the need to incentivise the uptake of recycled materials in all production routes;

and

(f) the alignment with climate neutrality objectives, as laid down in Regulation

(EU) 2021/1119 of the European Parliament and of the Council62.

62 Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing

the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU)

2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1, ELI:

http://data.europa.eu/eli/reg/2021/1119/oj).

EN 43 EN

Article 11

Public procurement

1. Contracting authorities and contracting entities shall exclude from access to

procurement procedures referred to in Part I of Annex II and Part I of Annex III

tenders submitted by economic operators owned or controlled by an entity

established in third countries which have not concluded an international agreement

with the Union guaranteeing such access.

2. For public procurement procedures referred to in Part I of Annex II and Part I of

Annex III, contracting authorities and contracting entities shall apply the Union

origin requirements and low-carbon requirements laid down therein in accordance

with Articles 8 and 10.

3. Contracting authorities and contracting entities may decide not to apply the

requirements set out in Annexes II and III where any of the following conditions are

fulfilled:

(a) the required products or services can only be supplied by one specific

economic operator, and no reasonable alternative or substitute exists, and the

absence of competition is not the result of an artificial narrowing down of the

parameters of the public procurement procedure;

(b) no suitable tenders or no suitable requests to participate were submitted,

including in response to a similar former public procurement procedure

launched by the same contracting authority or contracting entity in the two

years preceding the start of the planned new procurement procedure;

(c) their application would require a contracting authority or contracting entity to

acquire goods, services or works having disproportionate costs or would result

in technical incompatibility in their operation and maintenance. Estimated cost

differences exceeding 25%, based on objective and transparent data, may be

presumed by contracting authorities and contracting entities to be

disproportionate.

4. Contracting authorities and contracting entities shall require economic operators

supplying products or services to submit a self-declaration, or an equivalent

document, demonstrating compliance with the requirements set out in this Article.

Article 12

Other forms of public intervention

1. Without prejudice to Articles 107 and 108 TFEU, Member States shall design public

support schemes in a way that they contribute to the objective of strengthening the

Union’s strategic industrial value chains through the Union origin requirements, low-

carbon content requirements, or both, laid down in Part II of Annex II and Part II of

Annex III, in accordance with Articles 9 and 10 and without prejudice to Article 13.

Member States shall apply the requirements referred to in the first subparagraph to

public support schemes accounting for at least 45% of the total national budget

allocated to the public support schemes covered by Part II of Annex II and

accounting for 100% of the total national budget allocated to the public support

schemes covered by Part II of Annex III.

2. When designing and implementing a public support scheme covered by Part II of

Annex II and Part II of Annex III, the competent authority shall assess the

EN 44 EN

contribution of products and technologies to the overall target laid down therein on

the basis of an open, non-discriminatory and transparent process.

3. The competent authority may still implement support schemes that do not meet the

requirements laid down in Part II of Annex II and Part II of Annex III, in whole or in

part, if the application of such requirements:

(a) would lead to significant delays due to the unavailability of the required

components or final products. Estimated delays in excess of seven months,

based on objective, transparent and verifiable data, may be presumed to be

significant;

(b) would incur disproportionate costs. Disproportionate costs shall be presumed to

exist where, based on objective, transparent and verifiable data, compliance

would increase the cost of the underlying final product or technology by more

than 30%.

Article 13

Financial support for corporate vehicles

For the purposes of Article 4 of the [Proposal for a Regulation of 16 December 2025 on clean

corporate vehicles], the ‘made in the European Union’ criterion for providing financial

support for the uptake of corporate cars and vans shall comply with the criteria set out in Part

II of Annex III to this Regulation.

This ‘made in the European Union’ criterion shall be considered equivalent to the ‘Union

origin’ referred to in Article 7 of this Regulation.

Article 14

CO2 emission performance standards credits

1. For the purposes of Article 5(1) and (2) of Regulation (EU) 2019/631 [as amended

by the Proposal for a Regulation of 16 December 2025 amending Regulation (EU)

2019/631 as regards CO2 emission performance standards for new light duty

vehicles and vehicle labelling], the ‘made in the EU’ criterion for small zero-

emission vehicles shall comply with the criteria set out in Part III of Annex III to this

Regulation.

This ‘made in the EU’ criterion shall be considered equivalent to the ‘Union origin’

referred to in Article 7 of this Regulation.

2. For the purposes of Article 5b of Regulation (EU) 2019/631 [as amended by the

Proposal for a Regulation of 16 December 2025 amending Regulation (EU)

2019/631 as regards CO2 emission standards for new light duty vehicles and vehicle

labelling], ‘low-carbon steel made in the EU’ shall be understood as follows:

(a) ‘low-carbon’ shall comply with the conditions referred to in Article 10(1) of

this Regulation;

(b) ‘made in the EU’ shall be equivalent to the ‘Union origin’ referred to in Article

7 of this Regulation.

EN 45 EN

Article 15

Certification of a vehicle’s compliance with Union origin requirements

From [OP please insert date: six months after entry into force], when issuing a vehicle’s

certificate of conformity in accordance with Articles 36 and 37 of Regulation (EU) 2018/858,

for vehicles in compliance with the relevant Union origin requirements laid down in Annex

III to this Regulation, manufacturers shall provide an accompanying document certifying the

compliance of the vehicle.

Article 16

Delegation of powers

1. The Commission is empowered to adopt delegated acts in accordance with Article 30

to supplement this Regulation by laying down Union-level demand-side measures for

products from the chemical industry in order to promote the following activities:

(a) the production and sales of substances and mixtures of Union origin derived

from sustainable carbon sources;

(b) the use in products made available on the market of substances and mixtures of

Union origin derived from sustainable carbon sources.

In the preparation of the delegated acts, the Commission should take into account:

(a) the contribution of the requirements to the Union’s objective of economic

security, resilience and climate neutrality set out in Regulation (EU)

2021/1119;

(b) the market situation at Union level, as identified through monitoring activities,

including declining Union market shares and Union industry producing at

below capacity

(c) the impact of setting such measures on the overall competitiveness and

greenhouse gas emissions of the relevant sectors, as well as on costs for

downstream consumers and small and medium enterprises and public budgets.

2. The Commission is empowered to adopt delegated acts in accordance with Article 30

in order to amend Annex II or Annex III concerning the Union origin requirements,

low-carbon requirements or both set out for products referred to therein, taking into

account the following criteria:

(a) the market situation at Union level, as identified through monitoring activities,

including declining Union market shares and Union industry producing below

capacity;

(b) technological progress;

(c) the contribution of the requirements to the Union’s objective of public order,

economic security, resilience and climate neutrality set out in Regulation (EU)

2021/1119;

(d) demand for the relevant products or technologies driven by the downstream

sectors’ growth;

(e) share of product or technology in total production value of the downstream

sector;

(f) the impact of setting Union origin requirements, low-carbon requirements, or

both on the overall competitiveness and greenhouse gas emissions of the

EN 46 EN

relevant sectors, including on costs for downstream consumers and small and

medium enterprises and public budgets.

3. The Commission is empowered to adopt implementing acts in accordance with

Article 31(2) to specify the method for calculating the proportion of volume of

products and components originating in the Union in accordance with Regulation

(EU) No 952/2013, and where appropriate, to provide for the use of standardised

templates for certificates of compliance.

Implementing acts referred to in subparagraph 1 may also establish the methods and

procedures to be applied by the relevant competent national authorities, including

contracting authorities and contracting entities, to verify compliance with the

requirements laid down in this Regulation and, where appropriate, to make use of

digital tools for the purposes of calculation, verification and demonstration of

compliance.

CHAPTER IV

FOREIGN INVESTMENT CONTRIBUTION

Article 17

Scope

1. This Chapter shall apply to foreign direct investments exceeding a value of EUR 100

million in the emerging strategic manufacturing sectors referred to in paragraph 2,

where more than 40 % of the global manufacturing capacity is held by the third

country of which the foreign investor is a national or undertaking.

Such investments shall not be implemented unless explicitly approved by the

Investment Authority or the European Commission, referred to in Article 19, in

accordance with the provisions laid down in this Chapter.

2. This chapter shall apply to foreign direct investment in manufacturing in any of the

following emerging strategic sectors:

(a) battery technologies and its value chain for battery energy storage systems;

(b) pure electric vehicles, off-vehicle charging hybrid electric vehicles and fuel-

cell electric vehicles, including components related to electrification and

digitalisation;

(c) solar PV technologies;

(d) extraction, processing and recycling of critical raw materials.

3. This Chapter shall not apply to:

(a) investors and investments covered by economic partnership and free trade

agreements in force or provisionally applied by the Union to the extent relevant

commitments have been made under those agreements, including investments

made by the Union subsidiaries of such foreign investors;

(b) investments targeted at providing services, including investments made by the

Union subsidiaries of investors;

(c) portfolio investments.

EN 47 EN

Article 18

Value added foreign direct investment criteria

1. Member States shall, by [OP insert date: 1 month after entry into force of this

Regulation], designate an Investment Authority which shall perform the review of

foreign direct investment and implement the provisions of this Chapter.

Member States shall provide that Investment Authority with the necessary resources,

legal and administrative means for performing the tasks set out in this Regulation.

2. From [OP insert date: 12 month after entry into force of this Regulation], Investment

Authorities shall only approve foreign direct investments made directly by foreign

investors that fulfil either four or more of the following six conditions:

(a) foreign investors do not acquire, hold, or exercise ownership interests

representing more than 49% of the share capital, voting rights, or equivalent

ownership interests in any Union target, or equivalent ownership, leasehold or

other rights conferring control over a Union asset;

(b) foreign investor undertakes the direct investment through a joint venture with

one or more Union entities, with the foreign investor holding no more than

49% of the share capital, voting rights, or equivalent ownership interests or

other rights conferring control in any of the Union entities participating in the

joint venture. Such joint ventures shall be structured to ensure effective

participation of Union partners in management, technology transfer, and

capacity building;

(c) foreign investors have entered into agreements providing for the licensing of

their intellectual property rights and of their know-how to the benefit of the

Union Target, or the Union asset, to enable it to carry out its economic

activities in the context of the foreign direct investment. All intellectual

property rights or assets developed by the Union Target or the legal entity

owning the Union asset prior to the foreign investment or without the

collaboration of the foreign investor shall be fully and exclusively owned by

the Union Target or the legal entity of the Union asset. All intellectual property

rights or assets either developed in that context as a result of a collaboration

with the foreign investor’s other business assets, or in the case of point b,

developed by the joint venture, shall be owned jointly by the Foreign Investor

and the Union Target, the joint venture defined in point b or the legal entity

owning the Union asset;

(d) the foreign investor annually directs to research and development spending in

the Union an amount equivalent to at least 1% of the gross annual revenue of

the Union target, or the gross annual revenue generated by the Union asset, as

applied in proportion to the foreign investor’s share of control;

(e) at least 50% of the workforce employed in the context of the foreign direct

investment, at the time of its implementation and continuously throughout its

operation, shall be made up of Union workers across all categories of the

workforce, including operational, technical, supervisory, and managerial

positions. Such employment shall be accompanied by adequate training and

capacity-building measures. Where a Union target or Union asset already

performing manufacturing activities before the investment is acquired,

including after bankruptcy, maintaining the existing workforce or re-

employment of the former workforce shall be prioritised, in accordance with

EN 48 EN

national law and the application of collective agreements. In the event that the

foreign investor, the Union target or the Union asset receives public funding,

notwithstanding article 107 TFEU, it shall commit not to decrease the number

Union workers for a period of five years on pain of recovery by the relevant

national authorities, the funding awarded;

(f) in the context of the foreign direct investment, the foreign investor prepares

and publishes on its website a strategy for enhancing Union value chains and

prioritising the sourcing of inputs for the manufacturing activity from the

Union and endeavours to source from the Union a minimum of 30% of inputs

used for the products placed on the Union market.

3. The foreign direct investment shall comply with the condition referred to in

paragraph 2(e) to be approved by the Investment Authority pursuant to paragraph 2.

4. Investment Authorities may apply some or all of the conditions set out in paragraph 2

to direct investments made within the Union by a foreign investor’s subsidiary where

it is essential to achieve the objectives of this Regulation, under the following

conditions:

(a) preventing the circumvention of this Regulation by the foreign investor; or

(b) where no alternative measures, including commitments proposed by the foreign

investor or the foreign investor’s subsidiary, are reasonably available and less

restrictive of direct investment within the Union in order to meet the objectives

of the Regulation.

5. The Commission shall adopt an implementing act, by [OP please insert date: 6

months after entry into force of this Regulation]) to specify the detailed rules for

verifying the compliance with the conditions laid down in paragraph 2. Those

implementing acts shall be adopted in accordance with the examination procedure

referred to in Article 31(3).

Article 19

Prior notification of planned foreign direct investments

1. A foreign investor shall notify any planned direct investment within the scope of

Article 17 to the Investment Authority of the Member State where the Union target

or Union asset is located, and which would result in control over the Union target or

Union asset as laid down in paragraph 3.

The notification shall contain all necessary information to allow the Investment

Authority to perform the investment review pursuant to Article 20.

2. For the purposes of determining whether the investment value reaches the threshold

set out in Article 17(1), only previous investments of a foreign investor made in the

same Union target or Union asset by the foreign investor from [OP please insert the

date = the date of the entry into force of this Regulation] shall be aggregated.

3. Foreign investors shall be considered to have control, where the investment in

question reaches either of the following threshold:

(a) 30 percent or more share capital or voting rights in a Union target;

(b) 30 percent or more of ownership of a Union asset, and leasehold or other rights

conferring control over a Union asset.

EN 49 EN

4. Where a foreign investor's acquisition or establishment of an investment would result

in foreign investors collectively holding more than the ownership or control

thresholds laid down in paragraph 3, that acquisition or establishment shall be

notified.

5. For the purposes of calculating whether either of the thresholds laid down in

paragraph 3 have been reached, aggregated interests held directly or indirectly,

including through affiliates, chains of ownership or by foreign investors acting in

concert, shall be considered.

6. Where the relevant Union targets or assets are located in more than one Member

State, the foreign investor shall notify the competent Investment Authorities of all

Member States concerned and the Commission on the same day with reference to the

other notifications. The Member States concerned shall coordinate the review of such

notifications and agree on the conditions imposed with the other Member States

concerned, as well as with the Commission.

The Commission shall decide which conditions shall be applied to the foreign direct

investment in case there is no agreement between the Member States concerned.

Foreign direct investment notified pursuant to the first subparagraph shall fulfil the

conditions laid down in Article 18 in all Member States concerned.

Article 20

Review and approval

1. The Investment Authority shall decide on the admissibility of the notification

pursuant to Articles 17 and 19 within 30 days of receiving the notification. That

deadline may be extended by a further 15 days where the Investment Authority

demonstrates satisfactorily that an extension is justified by the circumstances.

Where the Investment Authority decides a notification is admissible, it shall

immediately transmit the full notification to the Commission including all documents

received.

2. Within 30 days after receiving the notification, the Commission may issue a written

opinion on whether the foreign direct investment falls within the scope of Articles 17

and 19, whether it fulfils the conditions laid out in Article 18(2), and whether the

Investment Authority is to approve the investment or not.

Where the Commission issues a written opinion, it shall transmit it to the Investment

Authority without delay. The Commission may share the written opinion with the

Investment Authorities of other Member States or publish the written opinion on its

official website, with due regard to confidentiality.

3. No sooner than receiving the opinion of the Commission or the lapse of the deadline

referred to in paragraph 2 and no later than 60 days, or 75 days if the deadline was

extended in accordance with paragraph 1, after receipt of the notification, the

Investment Authority shall issue a reasoned decision approving or declining the

foreign direct investment. The Investment Authority shall approve the foreign direct

investment if it fulfils 4 out of 6 conditions set out in Article 18. The deadline for

issuing the reasoned decision may be extended by a further 30 days where the

Investment Authority demonstrates satisfactorily that an extension is justified by the

circumstances.

EN 50 EN

The Investment Authority shall communicate such reasoned decisions to the

Commission within three days of adoption.

4. Where the Investment Authority gives a decision which diverts from the Commission

opinion as regards compliance of the foreign direct investment with the conditions

laid down in Article 18, the Investment Authority shall assess the notification in

greater detail within an additional period of two months and the decision shall only

enter into force after the lapse of this deadline.

Investment Authorities shall, in their reasoned decision issued pursuant to paragraph

3, justify how the opinion of the Commission was taken into account.

5. The Investment Authority shall, in its approval decision, set out reporting obligations

on the investor concerned, with a view to assessing the continuous fulfilment of the

conditions laid down in Article 18.

6. Any party subject to a decision issued pursuant to paragraphs 1 or 3 shall have the

right to seek judicial recourse against such decision.

Article 21

Review of foreign direct investment by the Commission

1. Following the notification referred to in Article 19(1), the Commission may decide to

undertake the assessment of the foreign direct investment in the following

circumstances:

(a) on its own initiative, where the foreign direct investment has the potential to

significantly impact added value creation in the Union market;

(b) on the request of an Investment Authority handling a notification, or an

Investment Authority of another Member State, in which the foreign direct

investment in question would have a significant impact on its territory; or

(c) on its own initiative, where the foreign direct investment has value exceeding

EUR 1 billion.

2. For the purposes of paragraph 1, the foreign direct investment shall be deemed to

have the potential to significantly impact the added value creation in the internal

market, in any of the following cases:

(a) it is of particular strategic importance for the internal market;

(b) it has considerable economic impact on the territory of more than one Member

State;

(c) it has high potential of disrupting the security of supply of that emerging

strategic sector or related value chains in the Union, or security in more than

one Member State;

(d) it has high potential of having detrimental environmental effect in more than

one Member State;

(e) it is of a particularly high value compared to other investments in that

emerging strategic sector.

3. Following the notification referred to in Article 19(1), the Commission may decide to

undertake the assessment of an investment referred to in Article 18(4). The

Commission may carry out its assessment on its own initiative, or at the request of an

Investment Authority handling a notification, or an Investment Authority of another

EN 51 EN

Member State on which the foreign direct investment in question would have a

significant impact.

Based on its assessment, the Commission may require the Investment Authority to

apply in a proportionate manner, or not to apply, some or all the conditions set out in

Article18(2).

4. Where the Commission decides to assess the foreign direct investment pursuant to

this Article, the provisions set out in Article 18 shall apply, mutatis mutandis,

starting from its decision to undertake the assessment.

Article 22

Monitoring and enforcement by the Investment Authority

1. The Investment Authority shall regularly monitor the foreign direct investment to

ensure that it continues to fulfil the conditions laid down in Article 18. For that

purpose, the foreign investor shall regularly report to the Investment Authority on

compliance with the conditions.

2. Upon request by the Commission, the Investment Authority shall transmit the

investor’s reports submitted pursuant to paragraph 1 to the Commission together with

its own assessment on each report.

3. The Investment Authority shall establish penalties in case of non-compliance with

the provisions of this Chapter, in particular where foreign investors or investments

fail to comply with the following requirements:

(a) the notification requirements in accordance with Article 19;

(b) the conditions laid down in Article 18;

(c) the monitoring obligations established by this Article.

4. Penalty payments established by the Investment Authority shall not amount to less

than 5 % of the average daily aggregate turnover of the foreign investor undertaking

in case of a violation pursuant to paragraph 3, point (a).

Where the foreign investor is a private person, the Investment Authority shall

establish a penalty payment of at least 5 % of the investment value in case a violation

pursuant to paragraph 3, point (a).

The penalty payments established by the Investment Authority shall be effective and

proportionate to the violations laid down in paragraph 3.

The Investment Authority shall inform the Commission without undue delay of any

non-compliance referred to in paragraph 3 and of the consequential penalties

imposed.

Article 23

Monitoring by the Commission

1. For the purposes of Article 17, the Commission shall monitor the global

manufacturing capacity for each of the emerging strategic sectors, building on

existing monitoring activities performed, in particular pursuant to Regulation (EU)

2024/1735.

EN 52 EN

2. The Commission shall provide and publish updated information on the most recent

year for which data is available for each of the emerging strategic sectors referred to

in Article 17(2).

Where the Commission decides to assess the foreign direct investment pursuant to

Article 21, it may by decision impose penalties if the foreign investor provides false

or misleading information in their notification, or if it does not supply the

information required for the Commission to perform its review obligation.

The penalties imposed by the Commission shall not exceed the 5% average daily

turnover of the foreign investor, or in case of a private person foreign investor, 5% of

the investment value.

Article 24

Delegation of powers

1. The Commission is empowered to adopt delegated acts in accordance with Article 30

of this Regulation to supplement the list of emerging strategic sectors to be covered

by this Chapter to sectors critical to the Union’s economic security including net-

zero technologies listed in Article 4(1), points (b), (d), (e), (g), (h), (j), (k), (n), (p),

and (s), of Regulation (EU) 2024/1735, nuclear fuel cycle technologies referred to in

Article 4(1), point (i), of Regulation (EU) 2024/1735, electric propulsion

technologies for transport referred to in Article 4(1), point (r), of Regulation (EU)

2024/1735, and excluding digital technologies, artificial intelligence, quantum

technologies and semiconductors.

These delegated acts shall be without prejudice to other Union acts establishing

investment criteria for these sectors.

2. The delegated acts referred to in paragraph 1 shall be based on the following factors:

(a) an assessment of whether modifying the list of emerging strategic sectors

would unduly deter or discourage foreign direct investment in the Union;

(b) number of foreign direct investments in that sector, taking into account their

contribution to the Union’s security of supply and their added value to the

Union’s economy;

(c) market situation and conditions, including supply chain disturbances, on Union

level;

(d) technological developments and the Union’s competitiveness in that sector in

comparison to third countries;

(e) supply chain dependence in the relevant sector on one or more countries.

3. The delegated acts adopted pursuant to paragraph 1 shall contain:

(a) the threshold value referred to in Article 17(1) for each of those additional

sectors;

(b) whether the investment conditions referred to in Article 18 are appropriate and

necessary to meet the objectives of this Regulation with respect to the sector

concerned, and if not, which of those criteria is to be applied.

EN 53 EN

CHAPTER V

INDUSTRIAL MANUFACTURING ACCELERATION AREAS

Article 25

Designating national industrial manufacturing acceleration areas

1. Member States shall designate at least one industrial manufacturing acceleration area

on their territory by [OP please insert date: 12 months following the entry into force

of this Regulation] to cluster industrial manufacturing projects in one or several of

the strategic sectors listed in Annex I.

2. Member States shall designate industrial manufacturing acceleration areas by

decision, on the basis of the following elements:

(a) the impact of the industrial manufacturing acceleration area's production on the

security of the Union's supply for the strategic sectors listed in Annex I;

(b) the potential of the industrial manufacturing acceleration area to support the

deployment of production capacity in the strategic sectors listed in Annex I, to

strengthen Union value chains and the Union’s innovation potential to

accelerate sustainable manufacturing industrial activities, including

decarbonisation and circular business practices, and to foster the functioning of

the internal market, in alignment with strategic projects and other initiatives,

including as Net Zero Acceleration Valleys, carried out pursuant to other

Union legislation;

(c) the number of SMEs and SMCs that would benefit from the provisions of this

Chapter within the industrial acceleration area;

(d) the Member State’s regions’ level of development, including least developed

areas, regions in transition, and those undergoing industrial transformation.

3. When designating industrial manufacturing acceleration areas, Member States shall:

(a) define a clear geographic scope for the acceleration area;

(b) prioritise locations where the deployment of a specific sector or sectors of

industrial manufacturing projects is not expected to have a significant

environmental impact;

(c) prioritise locations outside Natura 2000 sites and outside areas designated

under national protection schemes for nature and biodiversity conservation, as

well as other areas identified on the basis of sensitivity maps and outside

protected areas as referred to in Article 6 of Directive 2000/60/EC;

(d) take into account climate risks in the areas designated;

(e) prioritise artificial and built surfaces, industrial sites, and brownfield sites, as

well as already identified strategic projects pursuant to other Union legislation.

4. When designating industrial manufacturing acceleration areas, Member States shall

take into account, as relevant, the following considerations:

(a) the infrastructural needs of the acceleration area;

(b) the financing needs of manufacturing industry located in the acceleration area

and the possibility to support that industry, where applicable, in accordance

with applicable State aid rules;

EN 54 EN

(c) the supply chain needs within the acceleration area and the essential materials,

particularly secondary materials, necessary for manufacturing activities;

(d) the feasibility of connecting the acceleration area with sufficient low-carbon

energy supply for the acceleration of industrial manufacturing activity;

(e) skill needs, the shortages and employment trends and support measures to

achieve the adequate reskilling and upskilling of the local workforce;

(f) the need, as relevant, for depollution of the acceleration area to facilitate the

commencement of new industrial activities;

(g) research and innovation needs for accelerating the manufacturing industrial

activity in the area;

(h) relevant location-specific information made publicly available by industry,

including corporate climate transition plans, related targets and actions,

investment needs, and required enabling policy frameworks.

5. Before their adoption, the plans or programmes on the designation of the industrial

manufacturing acceleration areas shall be subject to an environmental assessment

pursuant to Directive 2001/42/EC of the European Parliament and of the Council63,

and, if they are likely to have a significant impact on Natura 2000 sites, to the

appropriate assessment pursuant to Article 6(3) of Council Directive 92/43/EEC64

and, where applicable, to the relevant assessment to comply with Article 4(7) of

Directive 2000/60/EC of the European Parliament and of the Council65.

6. Member States shall inform the Commission of the designation of an industrial

manufacturing acceleration area, within 30 days from the adoption of the relevant

decision.

Article 26

Enabling conditions

Member States shall take the following measures, where appropriate, to facilitate the

development of industrial manufacturing acceleration areas:

(a) facilitate financing of projects in the acceleration areas by ensuring

coordination between authorities and streamlining internal procedures, in

synergy with Union programmes and in accordance with existing State aid

rules where applicable, taking into account the participation of SMEs and

SMCs;

(b) promote research and innovation investments to accelerate the innovative

potential and Union’s competitiveness and technology leadership in the

acceleration areas;

(c) conduct, and review at least every three years, a comprehensive analysis of the

energy needs of each acceleration area and identifying the required energy

63 Directive 2001/42/EC of the European Parliament and of the Council of 27 June 2001 on the

assessment of the effects of certain plans and programmes on the environment (OJ L 197, 21.7.2001, p.

30, ELI: http://data.europa.eu/eli/dir/2001/42/oj). 64 Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna

and flora (OJ L 206, 22.7.1992, p. 7, ELI: http://data.europa.eu/eli/dir/1992/43/oj). 65 Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a

framework for Community action in the field of water policy (OJ L 327, 22.12.2000, p. 1, ELI:

http://data.europa.eu/eli/dir/2000/60/oj).

EN 55 EN

infrastructure capacity for the proper functioning and development of industrial

manufacturing projects located in the acceleration area.

Such analysis shall be conducted, at least, when designating the industrial

acceleration area and for the milestones of years 2030, 2040 and 2050,

ensuring alignment with the Union’s decarbonisation pathway;

(d) ensure that the network development plans prepared by transmission system

operators pursuant to Article 51 of Directive (EU) 2019/944 of the European

Parliament and of the Council66 and distribution system operators pursuant to

Article 32 of Directive (EU) 2019/944 take due account of the analysis

prepared pursuant to point (c) of this paragraph, considering the potential of

anticipatory investments to accommodate future system needs;

(e) exchange information on relevant supply chains, identify potential bottlenecks,

and strengthen coordination between acceleration areas on critical raw

materials issues within the framework of the European Critical Raw Materials

Board established by Article 35 of Regulation (EU) 2024/1252;

(f) promote entities in the acceleration areas and facilitate their participation,

where relevant, in the joint purchasing mechanism established by Article 25 of

Regulation (EU) 2024/1252, including by providing guidance, support, and

information to ensure effective engagement;

(g) support the development and availability of a highly skilled workforce and

provide appropriate training and apprenticeship opportunities, thereby

contributing to high-quality employment within those acceleration areas;

(h) exchange information on the necessary skills, potential shortages of those skills

and best practices applied in the acceleration areas within the framework of the

Industrial Forum expert group established by COM/2020/10267;

(i) ensure synergies and promote the benefits provided under the Pact for Skills68

or entities established in the acceleration areas, with particular attention to

Large-Scale Skill Partnerships and Regional Skills Partnerships included

therein.

Article 27

Permit-granting procedures in acceleration areas

1. For each designated industrial manufacturing acceleration area, Member States shall

prepare and issue an aggregated baseline permit authorising industrial activities

located within that area. This aggregated baseline permit shall cover the permits and

administrative authorisations required for the industrial manufacturing projects

66 Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common

rules for the internal market for electricity and amending Directive 2012/27/EU (OJ L 158, 14.6.2019,

p. 125, ELI: http://data.europa.eu/eli/dir/2019/944/oj). 67 Communication from the Commission to the European Parliament, the European Council, the Council,

the European Economic and Social Committee and the Committee of the Regions a New Industrial

Strategy for Europe (COM/2020/102 final). 68 Communication from the Commission to the European Parliament, the Council, the European

Parliament, the European Economic and Social Committee and the Committee of the Regions,

European Skills Agenda for sustainable competitiveness, social fairness and resilience ((COM(2020)

274 final).

EN 56 EN

located within the acceleration area, excluding those permits that are installation

specific.

2. Before issuing the aggregated baseline permit referred to in paragraph 1, Member

States shall carry out all necessary assessments, including relevant environmental

assessments, planning procedures and evaluations applicable at the level of the

acceleration area. Member States shall take into account the assessment carried out

pursuant to Article 25(5).

3. Industrial manufacturing projects located within an industrial manufacturing

acceleration area shall be required to obtain only those additional permits or

authorisations that fall outside the scope of the aggregated baseline permit referred to

in paragraph 1.

4. All industrial manufacturing projects located within an acceleration area shall be

considered strategic projects contributing to resilience and decarbonisation or

resource efficiency for the purposes of [Article 14 of Proposal for a Regulation on

speeding-up environmental assessment]. Points 1, 2 and 3 of the Annex to that

Regulation shall apply.

CHAPTER VI

FINAL PROVISIONS

Article 28

Evaluation

By [OP: Please insert the date = two years after the date of entry into force of this

Regulation], and every three years thereafter, the Commission shall carry out an evaluation of

this Regulation and of its contribution to the functioning of the internal market. The

evaluation shall consider:

(a) progress made in achieving the objectives specified in Article 1, particularly on

resilience, economic security and decarbonisation of industrial production;

(b) progress made in achieving the industrialisation objective pursuant to Article 2,

taking into account the challenges and opportunities in the internal market and

global markets;

(c) the related administrative costs, economic impacts on downstream sectors,

small and medium enterprises and impacts on public budgets.

Article 29

Review

By [OP: Please insert the date three years after the date of entry into force this Regulation],

the Commission shall assess the necessity of amending Chapters III and IV. The Commission

may submit a legislative proposal in order to repeal or amend this Regulation. That review

shall be carried out periodically every three years after the first review.

When carrying out its review, the Commission shall pay particular attention to the

effectiveness of this Regulation and the persistence of the circumstances that have justified

the adoption of this Regulation and to the necessity to introduce Union origin requirements

for products from certain sectors critical to the Union’s economic security, notably the

building of ships and of rail rolling stock.

EN 57 EN

Article 30

Exercise of the delegation

1. The power to adopt delegated acts is conferred on the Commission subject to the

conditions laid down in this Article.

2. The power to adopt delegated acts referred to in Articles 8, 9, 10, 16 and 24shall be

conferred on the Commission for an indeterminate period of time from [OP please

insert the date = the date of the entry into force of this Regulation].

3. The delegation of power referred to in Articles 8, 9, 10, 16 and 24 may be revoked at

any time by the European Parliament or by the Council. A decision to revoke shall

put an end to the delegation of the power specified in that decision. It shall take

effect on the day following the publication of the decision in the Official Journal of

the European Union or at a later date specified therein. It shall not affect the validity

of any delegated acts already in force.

4. Before adopting a delegated act, the Commission shall consult experts designated by

each Member State in accordance with the principles laid down in the

Interinstitutional Agreement of 13 April 2016 on Better Law-Making.

5. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to

the European Parliament and to the Council.

6. A delegated act adopted pursuant to Articles 8, 9, 10, 16 and 24shall enter into force

only if no objection has been expressed either by the European Parliament or by the

Council within a period of two months of notification of that act to the European

Parliament and the Council or if, before the expiry of that period, the European

Parliament and the Council have both informed the Commission that they will not

object. That period shall be extended by two months at the initiative of the European

Parliament or of the Council.

Article 31

Committee procedure

1. The Commission shall be assisted by a Committee. That Committee shall be a

committee within the meaning of Regulation (EU) No 182/2011.

2. Where reference is made to this paragraph, Article 4 of Regulation (EU) No

182/2011 shall apply.

3. Where reference is made to this paragraph, Article 5 of Regulation (EU) No

182/2011 shall apply.

Article 32

Penalties

Member States shall lay down rules on penalties applicable to infringements of the provisions

of this Regulation and shall take all necessary measures to ensure that they are implemented.

The penalties provided for shall be effective, proportionate and dissuasive. Member States

shall, without delay, notify the Commission of those rules and measures and shall notify it,

without delay, of any subsequent amendment affecting them.

EN 58 EN

Article 33

Amendments to Regulation (EU) 2018/1724

Annexes I and II to Regulation (EU) 2018/1724 are amended in accordance with Annex V to

this Regulation.

Article 34

Amendments to Regulation (EU) 2024/1735

Regulation (EU) 2024/1735 is amended as follows:

(1) in Article 3 the following points (34), (35) and (36) are added:

(a) ‘(34) ‘industrial battery’ means an industrial battery as defined in Article 3(1),

point (13), of Regulation (EU) 2023/1542 of the European Parliament and the

Council*;’

(b) ‘(35) ‘stationary battery energy storage system’ means a stationary battery

energy storage system as defined in Article 3(1), point (15), of Regulation (EU)

2023/1542;’

(c) ‘(36) ‘hydronic heat pump’ means a space heater using ambient heat from an

air source, water source or ground source, and/or waste heat for heat generation

and heating space through a water circuit.’

___

* Regulation (EU) 2023/1542 of the European Parliament and of the Council of

12 July 2023 concerning batteries and waste batteries, amending Directive

2008/98/EC and Regulation (EU) 2019/1020 and repealing Directive

2006/66/EC (OJ L 191, 28.7.2023, p. 1, ELI:

http://data.europa.eu/eli/reg/2023/1542/oj).;

(2) in Article 9, the following paragraph (14) is added:

14. All net-zero technology manufacturing projects shall be considered strategic

projects contributing to resilience and decarbonisation or resource efficiency for the

purpose of Article 14(1) of [Proposal for a Regulation on speeding-up environmental

assessment].’;

(3) Article 25 is amended as follows:

(a) paragraph 1 is replaced by the following:

‘1. For public procurement procedures falling within the scope of Directive

2014/23/EU, 2014/24/EU or 2014/25/EU, where contracts have net-zero

technologies listed in Article 4(1), points (a) to (d), (h) and (i), of this

Regulation as part of their subject matter, or in the case of works contracts and

works concessions including said technology, contracting authorities and

contracting entities shall apply minimum mandatory requirements regarding

environmental sustainability established in the implementing act referred to in

paragraph 5 of this Article.’;

(b) in paragraph 7, the first subparagraph is replaced by the following:

‘The tender’s resilience contribution shall be taken into account in the case of

public procurement procedures, work contracts and works concessions referred

to in paragraph 1, in accordance with this paragraph.’

EN 59 EN

(c) in paragraph 7, point (a) is replaced by the following:

‘(a) an obligation for the duration of the contract not to supply more than 50 %

of the value of the specific net-zero technology final product referred to in this

paragraph from each individual third country as determined by the

Commission;

(d) in paragraph 7, point (b) is replaced by the following:

‘(b) an obligation for the duration of the contract that no more than 50 % of the

value of all the main specific components of the specific net-zero technology

referred to in this paragraph taken together is supplied or provided directly by

the successful tenderer or by a subcontractor from each individual third country

as determined by the Commission;’;

(4) The following Article 25a is inserted:

‘Article 25a

Origin requirements for public procurement procedures

1. For public procurement procedures referred to in Annex II, contracting authorities

and contracting entities shall exclude from access to such procurement procedures

tenders submitted by economic operators owned or controlled by an entity

established in third countries which have not concluded an international agreement

with the Union guaranteeing such access.

2. For public procurement procedures referred to in Annex II, contracting authorities

and contracting entities shall apply the Union origin requirements laid down therein.

Requirements relating to specific main specific components shall only apply to the

extent that those components are included in the final product.

3. Contracting authorities and contracting entities may decide not to apply one or

several requirements set out in Annex II where any of the following conditions are

fulfilled:

(a) the required products can only be supplied by one specific economic operator,

and no reasonable alternative or substitute exists, and the absence of

competition is not the result of an artificial narrowing down of the parameters

of the public procurement procedure;

(b) no suitable tenders or no suitable requests to participate have been submitted,

including in response to a similar former public procurement procedure

launched by the same contracting authority or contracting entity in the two

years preceding the start of the planned new procurement procedure;

(c) their application would require a contracting authority or contracting entity to

acquire goods, services or works having disproportionate costs or would result

in technical incompatibility in operation and maintenance. Estimated cost

differences in excess of 25%, based on objective and transparent data, may be

presumed by contracting authorities and contracting entities to be

disproportionate.

(d) their application would lead to significant delays to the delivery of the project

due to the unavailability of the required components or final products.

Estimated delays in excess of seven months, based on objective, transparent

and verifiable data, may be presumed to be significant.

EN 60 EN

4. Contracting authorities shall require economic operators supplying products falling

within the scope of this Article to submit a self-declaration, or an equivalent

document, demonstrating compliance with the requirements set out in this Article.’

(5) Article 26 is amended as follows:

(a) the heading is replaced by the following: ‘Auctions for net-zero technologies’

(b) paragraph 1 is amended as follows:

the introductory wording is replaced by the following:

‘When designing auctions for net-zero technologies listed in Article 4(1),

points (a) to (g), (i) and (j), Member states shall include:’

in point (a), the following point (iv) is added:

‘ (iv) high-risk suppliers as defined in Article 2 point (39) of Regulation

xxxx/xxxx [CSA2]: For auctions that include control systems,

management control systems, supervisory control and data acquisition

systems, remote access systems or firewalls, suppliers identified as high-

risk suppliers in accordance with Regulation xxxx/xxxx [CSA2]shall not

be involved in the following processes:

(1) the supply of those products or systems;

(2) the design, development or production of those products or

systems;

(3) the management, control or operation of those products or systems;

(4) the development, maintenance, operation, or updating of their

software

point (b), is replaced by the following: ‘pre-qualification criteria or award

criteria as referred to in paragraphs 2 and 2a’.

(c) The following paragraph 2a is inserted: ‘2a. Where the auctions have net-zero

technologies listed in Annex II as part of their subject-matter, Member States

shall include the pre-qualification or award criteria laid down in Annex II.’

Criteria relating to specific main specific components shall only apply to the

extent that those components are included in the final product.’;

(d) in paragraph 3, the first subparagraph is replaced by the following: ‘The

Commission is empowered to adopt an implementing act further specifying the

pre-qualification and award criteria referred to in paragraph 1points (a), (i), (ii)

and (iii), and paragraph 2.’

(e) paragraph 4 is replaced by the following: ‘4. Member States shall give to each

of the criteria referred to in paragraphs 2 and 2a, when applied as award

criteria, a minimum weight of 5 % and a combined weight of between 15 %

and 30 % of the award criteria. That is without prejudice to the possibility to

give a higher weighting to the criteria referred to in the fourth subparagraph of

paragraph 2, in accordance with any limit for non-price criteria set out in State

aid rules.’.

(f) paragraph 5 is replaced by the following: ‘5. Member States shall not be

required to apply one or several of the pre-qualification and award criteria laid

down in paragraph 1, points (a), (i), (ii) and (iii), and paragraph 1, point (b),

where the application of those criteria would result in disproportionate costs or

EN 61 EN

in significant delays to the delivery of the project due to the unavailability of

the required components or final products. Estimated cost differences in excess

of 20% per auction, based on objective and verifiable data, may be presumed

by Member States to be disproportionate. Delays in excess of seven months,

based on objective, transparent and verifiable data, may be presumed to be

significant.’

(g) paragraph 7 is replaced by the following: ‘7. Paragraphs 1 to 5 shall apply to at

least 40% of the volume auctioned per year per Member State or alternatively

to at least 8 Gigawatt per year per Member State. Paragraph 1, points (a)(ii)

and (iv), shall apply to 100% of the volume auctioned per Member State.’

(h) in paragraph 8, the introductory wording is replaced by the following: ‘By 31

December 2027, the Commission shall carry out a comprehensive assessment

of the application of the criteria referred to in paragraph 2 and their effect on

the accelerated deployment of renewable energy technologies. By 31

December 2029 and every two years thereafter, the Commission shall carry out

a comprehensive assessment of the application of the criteria referred to in

paragraphs 2 and 2a and their effect on the accelerated deployment of

renewable energy technologies. In particular, the Commission shall assess the

impact of the criteria on:’

(6) The following Articles 28a to 28e are inserted:

Article 28a

Origin requirements for other forms of public intervention

1. Without prejudice to Articles 107 and 108 TFEU, support schemes referred to in

Annex II shall include the requirements laid down therein. Requirements relating to

specific main specific components shall only apply to the extent that those

components are included in the final product.

2. When designing and implementing a scheme pursuant to paragraph 1, the authority

shall assess the fulfilment of the requirements on the basis of an open, non-

discriminatory and transparent process.

3. When additional financial compensation is granted, it shall not exceed 15% of the

cost of the final product for the consumer, including transport and installation costs

where relevant, with the exception of schemes targeting citizens living in energy

poverty, as defined in Article 2, point (1), of Regulation (EU) 2023/955 of the

European Parliament and of the Council (57), for which the limit shall be 20 %.

Article 28b

Limitations to high-risk suppliers for other forms of public intervention

For support schemes within the scope of Articles 28 and 28a that include control systems,

management control systems, supervisory control and data acquisition systems, remote access

systems or firewalls, Member States shall design those schemes in such a way as to ensure

that beneficiaries shall be eligible to the scheme only where suppliers identified as high-risk

suppliers in accordance with Regulation xxxx/xxxx [CSA2] are not be involved in the

following processes:

(a) the supply of those products or systems;

(b) the design, development or production of those products or systems;

EN 62 EN

(c) the management, control or operation of those products or systems;

(d) the development, maintenance, operation, or updating of their software.

Article 28c

Union origin requirements for Member State support to construction and

manufacturing of net-zero technologies

1. Without prejudice to Articles 107 and 108 TFEU and in accordance with the Union’s

international commitments, when supporting the construction or manufacturing of

net-zero technology final products referred to in Annex II of this Regulation,

Member States shall ensure that the Union origin requirements laid down in that

Annex are met. Requirements relating to specific main specific components shall

only apply to the extent that those components are included in the final product.

2. Member States may decide not to apply one or several requirements referred to in

paragraph 1 where any of the following conditions are fulfilled:

(a) the required components can only be supplied by one specific economic

operator, and no reasonable alternative or substitute exists, and the absence of

competition is not the result of an artificial narrowing down of the parameters

of the public procurement procedure;

(b) their application would result in disproportionate costs or technical

incompatibility in operation or maintenance. Estimated cost differences in

excess of 25%, based on objective and transparent data, may be presumed to be

disproportionate;

(c) their application would jeopardise the project or lead to significant delays to

the delivery of the project due to the unavailability of the required components

or final products. Delays in excess of seven months, based on objective,

transparent and verifiable data, may be presumed to be significant.

3. Without prejudice to Articles 107 and 108 TFEU and in accordance with the Union’s

international commitments, when supporting the manufacturing of net-zero

technology final products referred to in Annex II of this Regulation and that include

control systems, management control systems, supervisory control and data

acquisition systems, remote access systems or firewalls, Member States shall ensure

that suppliers identified as high-risk suppliers in accordance with Regulation

xxxx/xxxx [CSA2] are not involved in the following processes:

(a) the supply of those products or systems;

(b) the design, development or production of those products or systems;

(c) the management, control or operation of those products or systems;

(d) the development, maintenance, operation, or updating of their software.

Article 28d

Union origin

1. For the purposes of Articles 25a, 26 and 28a and 28c, content of Union origin refers

to content originating in the Union.

2. The origin of products and components shall be determined in accordance with

Regulation (EU) No 952/2013 of the European Parliament.

EN 63 EN

Article 28e

Content equivalent to Union origin in public procurement

1. With respect to the Union origin requirements referred to in Article 25a, content

originating in third countries with which the Union has concluded an agreement

establishing a free trade area or a customs union, or that are parties to the Agreement

on Government Procurement, where relevant obligations of the Union exist under

that agreement, shall be deemed to be of Union origin .

2. The Commission shall adopt delegated acts in accordance with Article 44 to exclude,

in whole or in part, a third country from the scope of paragraph 1 based on any of the

following criteria:

(e) that third country has failed to provide national treatment related to Union

products or entities under the agreements referred to in paragraph 1 in relation

to any of the net-zero technologies listed in Article 4, point (1);

(f) such exclusion is justified to avoid dependencies or any other developments

that may threaten the security of supply in the Union of the products in

question;

(g) such exclusion is justified under any other exception under the applicable

agreement.

Article 28f

Content equivalent to Union origin in auctions

3. With respect to the Union origin requirements referred to in Article 26, content

originating in third countries with which the Union has concluded an agreement

establishing a free trade area or a customs union shall be deemed to be of Union

origin.

4. The Commission shall adopt delegated acts in accordance with Article 44 to exclude,

in whole or in part, a third country from the scope of paragraph 1 based on any of the

following criteria:

(h) that third country has failed to provide national treatment related to Union

products or entities under the agreements referred to in paragraph 1 in relation

to any of the net-zero technologies listed in Article 4, point (1);

(i) such exclusion is justified to avoid dependencies or any other developments

that may threaten the security of supply in the Union of the products in

question;

(j) such exclusion is justified under any other exception under the applicable

agreement.

Article 28g

Content equivalent to Union origin in other forms of public intervention

1. With respect the Union origin requirements set out in Article 28a, content originating

in third countries with which the Union has concluded an agreement establishing a

free trade area or a customs union shall be deemed to be of Union origin.

2. The Commission shall adopt delegated acts in accordance with Article 44 to exclude,

in whole or in part, a third country from the scope of paragraph 1 based on any of the

following criteria:

EN 64 EN

(k) that third country has failed to provide national treatment related to Union

products or entities under the agreements referred to in paragraph 1 in relation

to any of the net-zero technologies listed in Article 4, point (1);

(l) such exclusion is justified to avoid dependencies or any other developments

that may threaten the security of supply in the Union of the products in

question;

(m) such exclusion is justified under any other exception under the applicable

agreement.

Article 28h

Delegation of power

1. The Commission is empowered to adopt delegated acts in accordance with Article 44

to amend the Union origin requirements laid down in Annex II, taking into account

the following criteria:

(a) the market situation at Union level including declining Union market shares

and Union industry producing below capacity;

(b) the contribution of the requirements to the Union’s objective of public order,

economic security, resilience and climate neutrality set out in Regulation (EU)

2021/1119;

(c) technological progress;

(d) demand for the relevant net-zero technologies;

(e) the impact of setting Union origin requirements on the overall competitiveness

and greenhouse gas emissions of the relevant sectors.

2. The Commission is empowered to adopt delegated acts to supplement Annex II with

Union origin requirements for additional specific net-zero technology final products

referred to in Article 4(1), points (g), (h), (j), (k), (n), (p), and (s), as well as solar

thermal technologies referred to in Article 4(1), point (a), nuclear fuel cycle

technologies referred to in Article 4(1), point (i), and electric propulsion technologies

for transport referred to in Article 4(1), point (r), which shall be required in

accordance with Articles 25a, 26, 28a and 28c. In doing so, the Commission shall

take the following into account:

(a) the market situation at Union level, as identified through monitoring activities,

including declining Union market shares and Union industry producing below

capacity;

(b) the contribution of the requirements to the Union’s objective of public order,

economic security, resilience and climate neutrality;

(c) the impact of setting Union origin requirements, low-carbon requirements, or

both on the overall competitiveness and greenhouse gas emissions of the

relevant sectors, as well as on downstream costs for consumers and small and

medium enterprises and on public budgets.

(d) demand for the relevant products or technologies.

1. The delegated acts referred to in paragraph 2 shall set out:

(a) the products and components to which the minimum Union origin requirements

shall apply;

EN 65 EN

(b) the scope of application of the minimum Union origin requirements;

(7) Article 42 is amended as follows:

(a) the following paragraph 2a is inserted:

‘2a. Member States, public authorities, procuring authorities and procuring

entities applying Chapter IV of this Regulation shall report on the application

of exemptions in accordance with the provisions of that Chapter.’

(b) paragraph 3 is replaced by the following:

‘3. Where they are not already included in, or in accordance with the elements

of, the national energy and climate plans, each Member State shall submit to

the Commission a report setting out the data referred to in paragraphs 2 and 2a

by 15 March 2027 and every three years thereafter.’;

(8) The following Annex II is added:

‘ANNEX II

Union origin requirements for net-zero technologies

Part I – Public procurement

1. In accordance with Article 25a, for public procurement procedures published after

the entry into force of this Regulation falling within the scope of Directives

2014/23/EU, 2014/24/EU or 2014/25/EU where contracts, works contracts or work

concessions include the procurement of the following net-zero technologies,

procurement documents shall include the requirements laid down below:

(a) Battery energy storage systems:

From [OP: Please insert the date = 1 year after entry into force of this

Regulation] until [3 years after entry into force of this Regulation], the

battery energy storage systems shall originate in the Union and, for

projects including battery energy storage exceeding 1 Megawatt-hour,

contain a battery management system that originates in the Union.

From [OP: Please insert the date = 3 years after entry into force of this

Regulation], the battery energy storage systems shall originate in the

Union and contain battery cells, a battery management system as well as

one additional main specific component that originate in the Union.

(b) Solar PV technologies: From [OP: Please insert the date = 3 years after entry

into force of this Regulation], the PV inverter and the PV cells or equivalent

shall originate in the Union.

(c) Hydronic heat pumps: From [OP: Please insert: 3 years after the entry into

force of this Regulation] the hydronic heat pump shall originate in the Union.

(d) Onshore and offshore wind technologies:

From [OP: Please insert the date = 1 year after the entry into force of this

Regulation] until [OP: Please insert the date = 3 years after entry into

force of this Regulation], one main specific component shall originate in

the Union.

From [OP: Please insert the date = 3 years after the entry into force of this

Regulation], two main specific components shall originate in the Union.

(e) Nuclear fission technologies:

EN 66 EN

For public procurement procedures published after [OP: Please insert the date

= 4 years after entry into force of this Regulation] where works contracts

or work concessions include the construction on a new-build nuclear

power plant, including small modular nuclear reactors (SMR), at least

two main specific components shall originate in the Union.

For public procurement procedures published after [OP: Please insert the date

= 6 years after entry into force of this Regulation] where works contracts

or work concessions include the construction on a new-build nuclear

power plant, including small modular nuclear reactors (SMR), at least

three main specific components shall originate in the Union.

These requirements shall not apply to research, development and innovation

projects including first industrial deployment of nuclear power plants.

Part II – Auctions

In accordance with Article 26, when auctions have the following net-zero technologies as part

of their subject-matter, Member States shall include the pre-qualification or award criteria laid

down below:

(a) Battery energy storage systems:

For auctions published from [OP: Please insert the date = 1 year after entry into

force of this Regulation] until [OP: Please insert the date = 3 years after

entry into force of this Regulation], the battery energy storage system

shall originate in the Union and, for projects including battery energy

storage exceeding 1 Megawatt-hour, contain a battery management

system that originates in the Union.

For auctions published after [OP: Please insert the date = 3 years after entry

into force of this Regulation], the battery energy storage system shall

originate in the Union and contain battery cells, a battery management

system as well as one additional main specific components that originate

in the Union.

(b) Solar PV technologies: For auctions published after [OP: Please insert the date

= 3 years after entry into force of this Regulation], PV inverter and the PV cells

or equivalent shall originate in the Union.

(c) Hydrogen:

For auctions published after [OP: Please insert the date = 1 year after the entry

into force of this Regulation], the electrolysers used to produce the

hydrogen shall originate in the Union, and the stacks as well as one

additional main specific component shall originate in the Union.

For auctions published after [OP: Please insert the date = 3 years after the entry

into force of this Regulation], the electrolysers used to produce the

hydrogen shall originate in the Union, and the stacks as well as two

additional main specific components shall originate in the Union.

(d) Onshore and offshore wind technologies:

For auctions published from [OP: Please insert the date = 1 year after entry into

force of this Regulation] until [OP: Please insert the date = 3 years after

entry into force of this Regulation], one main specific component of the

wind turbine shall originate in the Union.

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For auctions published after [OP: Please insert the date = 3 years after entry

into force of this Regulation], two main specific components of the wind

turbine shall originate in the Union.

Part III – Other forms of public intervention

In accordance with Article 28b, when deciding to set up new schemes or to update existing

schemes benefitting households or companies that support the demand for net-zero

technology final products listed in this paragraph, Member States, regional or local

authorities, bodies governed by public law or associations formed by one or more such

authorities or one or more such bodies governed by public law, shall design the schemes in

such a way as to ensure that beneficiaries shall be eligible to the scheme or to additional

financial compensation only where the requirements laid down below are fulfilled:

(a) Battery energy storage systems:

For schemes set up or updated between [OP: Please insert the date = 1 year

after entry into force of this Regulation] and [OP: Please insert the date =

3 years after entry into force of this Regulation], the battery energy

storage systems shall originate in the Union and, for projects including

battery energy storage exceeding 1 Megawatt-hour, contain a battery

management system that originates in the Union.

For schemes set up or updated from [OP: Please insert the date = 3 years after

entry into force of this Regulation], the battery energy storage systems

shall originate in the Union and contain battery cells, a battery

management system as well as one additional main specific components

that originate in the Union.

(b) Solar PV technologies: For schemes set up or updated from [OP: Please insert

the date = 3 years after entry into force of this Regulation], the PV inverter and

the PV cells or equivalent shall originate in the Union.

(c) Hydronic heat pumps: For schemes set up or updated from [OP: Please insert

the date = 3 years after entry into force of this Regulation], the hydronic heat

pump shall originate in the Union.

IV – Member State support to construction or manufacturing of net-zero technologies

In accordance with article 28c, when supporting the construction or manufacturing of the

following net-zero technology final products, Member States shall ensure that the Union

origin requirements laid down below are fulfilled:

(a) Hydrogen:

From [OP: Please insert the date = 1 year after entry into force of this

Regulation] when setting up new support schemes for investments into

supporting the manufacturing capacity of electrolysers, Member States

shall ensure that the electrolyser originates in the Union and the stack and

at least one additional main specific component of the electrolyser

originate in the Union.

From [OP: Please insert the date = 3 years after entry into force of this

Regulation] when setting up new support schemes for investments into

supporting the manufacturing capacity of electrolysers, Member States

shall ensure that the electrolyser originates in the Union and the stack and

EN 68 EN

at least two additional main specific components of the electrolyser

originate in the Union.

(b) Nuclear:

For projects for which the application for support takes place after [OP: Please

insert the date = 4 years after entry into force of this Regulation] when

supporting the construction of new-build nuclear power plants, including

small modular nuclear reactors (SMR), Member States shall ensure that

at least two main specific components of the nuclear fission technology

final products originate in the Union.

For projects for which the application for support takes place after [OP: Please

insert the date = 6 years after entry into force of this Regulation] when

supporting the construction of new-build nuclear power plants, including

small modular nuclear reactors (SMR), Member States shall ensure that

at least three main specific components of the nuclear fission technology

final products originate in the Union.

These requirements shall not apply to research, development and innovation

projects including first industrial deployment of nuclear power plants.

Article 35

Amendments to Regulation (EU) 2024/3110

In Article 22(9) of Regulation (EU) 2024/3110, the first subparagraph is replaced by the

following:

‘In order to ensure transparency for users and to promote sustainable products, the

Commission is empowered to adopt delegated acts in accordance with Article 89 to

supplement this Regulation, by establishing specific environmental sustainability

labelling requirements for particular product families and product categories.’.

Article 36

Entry into force and application

This Regulation shall enter into force on the day following that of its publication in the

Official Journal of the European Union.

Articles 4 and 5 shall apply from [OP: Please insert the date = [one] year after the date of

entry into force of this Regulation].

This Regulation shall be binding in its entirety and directly applicable in the Member States in

accordance with the Treaties.

Done at Brussels,

For the European Parliament For the Council

The President The President

EN 1 EN

LEGISLATIVE FINANCIAL AND DIGITAL STATEMENT

1. FRAMEWORK OF THE PROPOSAL/INITIATIVE ................................................. 3

1.1. Title of the proposal/initiative ...................................................................................... 3

1.2. Policy area(s) concerned .............................................................................................. 3

1.3. Objective(s) .................................................................................................................. 3

1.3.1. General objective(s) ..................................................................................................... 3

1.3.2. Specific objective(s) ..................................................................................................... 3

1.3.3. Expected result(s) and impact ...................................................................................... 3

1.3.4. Indicators of performance ............................................................................................ 3

1.4. The proposal/initiative relates to: ................................................................................. 4

1.5. Grounds for the proposal/initiative .............................................................................. 4

1.5.1. Requirement(s) to be met in the short or long term including a detailed timeline for

roll-out of the implementation of the initiative ............................................................ 4

1.5.2. Added value of EU involvement (it may result from different factors, e.g.

coordination gains, legal certainty, greater effectiveness or complementarities). For

the purposes of this section 'added value of EU involvement' is the value resulting

from EU action, that is additional to the value that would have been otherwise

created by Member States alone. ................................................................................. 4

1.5.3. Lessons learned from similar experiences in the past .................................................. 4

1.5.4. Compatibility with the multiannual financial framework and possible synergies with

other appropriate instruments ....................................................................................... 5

1.5.5. Assessment of the different available financing options, including scope for

redeployment ................................................................................................................ 5

1.6. Duration of the proposal/initiative and of its financial impact .................................... 6

1.7. Method(s) of budget implementation planned ............................................................. 6

2. MANAGEMENT MEASURES................................................................................... 8

2.1. Monitoring and reporting rules .................................................................................... 8

2.2. Management and control system(s) ............................................................................. 8

2.2.1. Justification of the budget implementation method(s), the funding implementation

mechanism(s), the payment modalities and the control strategy proposed .................. 8

2.2.2. Information concerning the risks identified and the internal control system(s) set up

to mitigate them............................................................................................................ 8

2.2.3. Estimation and justification of the cost-effectiveness of the controls (ratio between

the control costs and the value of the related funds managed), and assessment of the

expected levels of risk of error (at payment & at closure) ........................................... 8

2.3. Measures to prevent fraud and irregularities ................................................................ 9

3. ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE ............ 10

3.1. Heading(s) of the multiannual financial framework and expenditure budget line(s)

affected ....................................................................................................................... 10

EN 2 EN

3.2. Estimated financial impact of the proposal on appropriations ................................... 12

3.2.1. Summary of estimated impact on operational appropriations.................................... 12

3.2.1.1. Appropriations from voted budget ............................................................................. 12

3.2.1.2. Appropriations from external assigned revenues ....................................................... 17

3.2.2. Estimated output funded from operational appropriations......................................... 22

3.2.3. Summary of estimated impact on administrative appropriations ............................... 24

3.2.3.1. Appropriations from voted budget .............................................................................. 24

3.2.3.2. Appropriations from external assigned revenues ....................................................... 24

3.2.3.3. Total appropriations ................................................................................................... 24

3.2.4. Estimated requirements of human resources.............................................................. 25

3.2.4.1. Financed from voted budget....................................................................................... 25

3.2.4.2. Financed from external assigned revenues ................................................................ 26

3.2.4.3. Total requirements of human resources ..................................................................... 26

3.2.5. Overview of estimated impact on digital technology-related investments ................ 28

3.2.6. Compatibility with the current multiannual financial framework.............................. 28

3.2.7. Third-party contributions ........................................................................................... 28

3.3. Estimated impact on revenue ..................................................................................... 29

4. DIGITAL DIMENSIONS .......................................................................................... 29

4.1. Requirements of digital relevance .............................................................................. 30

4.2. Data ............................................................................................................................ 30

4.3. Digital solutions ......................................................................................................... 31

4.4. Interoperability assessment ........................................................................................ 31

4.5. Measures to support digital implementation .............................................................. 32

EN 3 EN

1. FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1. Title of the proposal/initiative

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on establishing a framework of measures for accelerating industrial capacity and

decarbonisation in strategic sectors and amending Regulation (EU) 2018/1724,

Regulation (EU) 2024/1735 and Regulation (EU) 2024/3110 (Industrial Accelerator

Act).

1.2. Policy area(s) concerned

Single market, Competitiveness, Climate.

1.3. Objective(s)

1.3.1. General objective(s)

The general objective is to increase decarbonised and resilient industrial production

in the EU manufacturing industry, with a special attention on energy-intensive

industries (EIIs) and clean technologies, considering their contribution to Europe’s

competitiveness, economic security, and sustainable economic growth, in line with

the Clean Industrial Deal’s objectives.

1.3.2. Specific objective(s)

Specific objective No 1

Facilitate differentiation for low-carbon industrial products to increase their value

and marketability.

Specific objective No 2

Boost demand for European low-carbon products and clean tech.

Specific objective No 3

Maximise the quality and benefits of foreign investment in the EU.

Specific objective No 4

Speed-up and simplify permits for industrial decarbonisation

Specific objective No 5

Increase investment projects in industrial areas.

1.3.3. Expected result(s) and impact

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted.

Economic Impacts

Introducing a harmonised low-carbon label for industrial products and verification

mechanism will improve market transparency, allowing producers to capture value

for cleaner production and stimulate competition based on performance rather than

cost alone. It will create new commercial opportunities for EU manufacturers,

enhance price differentiation in international markets, and attract private investment

in low-carbon technologies.

By increasing the share of EU-made and low-carbon products in domestic

consumption, the measure will boost demand within European market, strengthen

EN 4 EN

industrial competitiveness, and reduce dependence on high-carbon or imported

alternatives. Creating lead markets for low-carbon steel, cement, and clean

technologies will accelerate economies of scale and stimulate further investment.

Encouraging joint ventures and strategic partnerships that generate European added

value will increase knowledge transfer, industrial innovation, and technological

sovereignty. It will improve supply-chain security, diversify input sources, and

enhance the resilience of EU industrial ecosystems.

Reducing permitting times will shorten project delays and lower financing costs,

strengthening the investment climate for industrial decarbonisation. Faster approvals

will speed up the deployment of clean-energy infrastructure, carbon-capture

facilities, and electrification projects, stimulating industrial productivity and regional

development.

Supporting a higher number of final investment decisions (FIDs) in industrial areas

will drive capital formation, modernise existing facilities, and attract complementary

private financing. Concentrating investment in industrial clusters will generate

economies of scale and strengthen regional competitiveness.

Social impacts

The label on greenhouse gas intensity of industrial products will strengthen consumer

and buyer confidence in low-carbon products, supporting skilled employment in

verification, testing, and certification services. By rewarding innovation, it will help

sustain quality industrial jobs and foster upskilling and reskilling across

manufacturing supply chains.

Increased EU demand will help preserve and create high-quality jobs in

manufacturing regions transitioning to low-carbon industries. It will also improve

regional cohesion by fostering re-industrialisation in affected areas, while mitigating

adjustment costs for workers through stable production prospects.

High-quality foreign investments and partnerships will create new employment

opportunities, particularly in advanced manufacturing and research-intensive

segments. They will also strengthen cooperation between EU and non-EU

companies, promoting workforce training and skills exchange.

. Improved transparency and digital tools will increase citizen trust and participation

in local industrial projects.

Increased industrial activity in existing sites will generate stable employment and

strengthen local supply chains, while minimising social disruption by utilising

brownfield sites and leveraging existing workforce skills. Industrial clustering will

support regional convergence and resilience.

Environmental impacts

A reliable and comparable labelling framework will incentivise the reduction of

greenhouse-gas (GHG) emissions across industrial value chains. It will encourage

continuous improvement in product design, materials use, and energy efficiency,

helping industry meet climate-neutrality objective.

EN 5 EN

By introducing low-carbon requirements, greater uptake of low-carbon products will

drive significant emission reductions in the construction and transport sectors. This

demand-driven approach complements supply-side innovation, accelerating the

overall decarbonisation of the European economy.

Shorter and more predictable permitting processes will accelerate the deployment of

low-carbon technologies and environmental upgrades, enabling earlier emission

reductions and contributing to the EU’s intermediate climate targets.

By concentrating new projects within industrial areas, the measure promotes efficient

energy and natural resource use, and enables shared infrastructure for CO₂ capture,

renewable energy, and waste recycling. This approach aligns industrial growth with

environmental protection and circular-economy principles.

1.3.4. Indicators of performance

Specify the indicators for monitoring progress and achievements.

The number of awarded low-carbon label certificates for relevant industrial products

will measure progress in creating a reliable and transparent framework that allows

producers to differentiate their products based on carbon performance. It will

demonstrate the EU’s progress in making low-carbon industrial products visible,

verifiable and comparable on the market, thereby strengthening their competitiveness

and value creation.

The share of EU and low-carbon production in EU consumption for relevant

products will capture the proportion of clean and domestically produced materials in

overall EU demand. It indicates whether demand-side measures, such as public

procurement, investment incentives, and EU-content criteria, are effectively

stimulating the uptake of low-carbon and European-made products. A growing share

will demonstrate the emergence of strong EU lead markets for green industrial goods

and will point to reduced dependence on high-carbon imports.

The number of joint ventures in relevant sectors that create European added value,

innovation and industrial resilience will measure the level of high-quality industrial

partnerships between EU and non-EU actors contributing to technology transfer,

innovation, and secure supply chains. This indicator reflects the success of the IAA

in attracting sustainable, “high quality” foreign investment and promoting

collaboration that strengthens the EU’s industrial base. Increases in such ventures

signal a more resilient and innovative industrial ecosystem that retains greater value

within Europe.

The average permitting time for industrial decarbonisation projects will track the

efficiency of administrative procedures across Member States. It measures how long

competent authorities take to process and approve applications for industrial

decarbonisation projects, including grid and clean-energy connections. A reduction

in average permitting times will demonstrate that the streamlining, coordination and

digitalisation measures introduced under the IAA are effectively accelerating

investment and reducing bureaucratic barriers for companies.

The number of industrial FIDs realised in relevant industries will serve as a direct

indicator of investment momentum and business confidence in the EU’s industrial

transition. It reflects the extent to which companies are committing capital to new or

upgraded decarbonisation projects, particularly within existing industrial areas and

clusters. Rising numbers of realised FIDs will show that the framework established

EN 6 EN

by the IAA is translating into tangible projects, supporting job creation, regional re-

industrialisation and faster deployment of clean technologies across Europe.

1.4. The proposal/initiative relates to:

 a new action

 a new action following a pilot project / preparatory action69

 the extension of an existing action

 a merger or redirection of one or more actions towards another/a new action

1.5. Grounds for the proposal/initiative

1.5.1. Requirement(s) to be met in the short or long term including a detailed timeline for

roll-out of the implementation of the initiative

The proposal responds to the urgent need to accelerate industrial decarbonisation and

strengthen Europe’s manufacturing competitiveness in a context of global

technological competition and rising investment needs. The initiative aims to remove

barriers that slow down investment in low-carbon and resilient industrial production

and to ensure the integrity of the Single Market in its transition towards climate

neutrality.

1.5.2. Added value of EU involvement (it may result from different factors, e.g.

coordination gains, legal certainty, greater effectiveness or complementarities). For

the purposes of this section 'added value of EU involvement' is the value resulting

from EU action, that is additional to the value that would have been otherwise

created by Member States alone.

Reasons for action at EU level (ex-ante)

Industrial decarbonisation and resilience challenges transcend national borders.

Divergent definitions of low-carbon products, uncoordinated demand-side measures

and inconsistent permitting procedures risk fragmenting the Single Market and

weakening Europe’s industrial base. Only coordinated EU-level action can guarantee

a level playing field, prevent investment diversion, and ensure that climate and

industrial policies reinforce one another. The Regulation acts under Article 114

TFEU to preserve the functioning of the single market and, where relevant, Article

207 TFEU to ensure coherence on measures related to foreign investment.

Expected generated EU added value (ex-post)

EU intervention will generate lasting benefits through economies of scale, lower

transaction costs, and improved legal certainty for investors and authorities. It will

strengthen Europe’s capacity to manufacture low-carbon products, attract sustainable

investment, and speed up project deployment. Harmonised criteria, shared digital

tools, and consistent permitting principles will reduce administrative burden while

providing uniform market conditions across Member States.

1.5.3. Lessons learned from similar experiences in the past

Experience from the Net-Zero Industry Act (NZIA), the Critical Raw Materials Act

(CRMA) and the Ecodesign for Sustainable Products Regulation (ESPR)

demonstrates that targeted Single-Market instruments combining common

69 As referred to in Article 58(2), point (a) or (b) of the Financial Regulation.

EN 7 EN

definitions, demand-side incentives and administrative simplification deliver

measurable investment acceleration. These precedents demonstrate the effectiveness

of clear regulatory frameworks and structured coordination between the Commission

and Member States. The IAA applies these lessons specifically to energy-intensive

industries and clean energy technology manufacturing, and vehicle components

ensuring coherence with existing instruments and avoiding regulatory overlap.

1.5.4. Compatibility with the multiannual financial framework and possible synergies with

other appropriate instruments

The proposal is fully consistent with the 2021-2027 Multiannual Financial

Framework and will be implemented through existing Union programmes. Synergies

are foreseen with the Innovation Fund, InvestEU, Horizon Europe, Connecting

Europe Facility – Energy, the Cohesion Policy funds, and the Technical Support

Instrument. The initiative complements the Clean Industrial Deal, CRMA, and the

European Competitiveness Fund, without creating new spending envelopes or

financial obligations beyond existing resources.

1.5.5. Assessment of the different available financing options, including scope for

redeployment

All financing will be ensured through redeployments from programmes. Without

prejudice to the outcome of negotiations on the next MFF, the appropriations

foreseen from 2028 onwards are strictly indicative.

EN 8 EN

1.6. Duration of the proposal/initiative and of its financial impact

 limited duration

–  in effect from [DD/MM]YYYY to [DD/MM]YYYY

–  financial impact from YYYY to YYYY for commitment appropriations and

from YYYY to YYYY for payment appropriations.

 unlimited duration

– Implementation with a start-up period from YYYY to YYYY,

– followed by full-scale operation.

The Regulation will enter into force in 2027 and remain applicable beyond 2030,

with a review every five years to assess progress and alignment with Union climate

and economic security objectives.

1.7. Method(s) of budget implementation planned

 Direct management by the Commission

–  by its departments, including by its staff in the Union delegations;

–  by the executive agencies

 Shared management with the Member States

 Indirect management by entrusting budget implementation tasks to:

–  third countries or the bodies they have designated

–  international organisations and their agencies (to be specified)

–  the European Investment Bank and the European Investment Fund

–  bodies referred to in Articles 70 and 71 of the Financial Regulation

–  public law bodies

–  bodies governed by private law with a public service mission to the extent that

they are provided with adequate financial guarantees

–  bodies governed by the private law of a Member State that are entrusted with

the implementation of a public-private partnership and that are provided with

adequate financial guarantees

–  bodies or persons entrusted with the implementation of specific actions in the

common foreign and security policy pursuant to Title V of the Treaty on

European Union, and identified in the relevant basic act

– bodies established in a Member State, governed by the private law of a

Member State or Union law and eligible to be entrusted, in accordance with

sector-specific rules, with the implementation of Union funds or budgetary

guarantees, to the extent that such bodies are controlled by public law bodies or

by bodies governed by private law with a public service mission, and are provided

with adequate financial guarantees in the form of joint and several liability by the

controlling bodies or equivalent financial guarantees and which may be, for each

action, limited to the maximum amount of the Union support.

EN 9 EN

2. MANAGEMENT MEASURES

2.1. Monitoring and reporting rules

This Statement includes staff expenditures. Standard rules for this type of

expenditure apply. The Commission will evaluate the output, results and impact of

this proposal every three years after the date on which it becomes applicable. The

evaluation will assess the contribution of this Regulation to the functioning of the

single market, including the objectives specified in Article 1, particularly on

resilience, economic security, and decarbonisation of industrial production.

2.2. Management and control system(s)

2.2.1. Justification of the budget implementation method(s), the funding implementation

mechanism(s), the payment modalities and the control strategy proposed

The management mode for the initiative is direct management by the Commission.

This is the most appropriate approach given the limited scope of Union expenditure,

which is confined to standard administrative and monitoring-related costs. Using

established internal procedures ensures effective and efficient controls, low error

rates, fast processing of transactions and minimal control costs.

2.2.2. Information concerning the risks identified and the internal control system(s) set up

to mitigate them

Overall, the initiative requires staff expenditure. Standard rules for this type of

expenditure apply.

Most aspects of the initiative follow established procedures for engaging with

stakeholders through for example the Industrial Forum and implementing monitoring

obligations. The main operational risk is insufficient administrative capacity to

implement the work plans and monitoring activities foreseen in the Regulation.

This proposal is accompanied by an impact assessment report, which provides the

analytics underpinning the chosen policy approach. The preparation of the initiative

also drew on a public consultation as well as targeted consultations with industry

stakeholders, Member States and trade associations, which ensured the collection of

relevant data, information and feedback. Nonetheless, unintentional consequences or

unforeseen impacts may still occur during implementation. These will be identified

through the monitoring procedures set out in the Regulation, allowing the

Commission to address them in an appropriate and timely manner.

2.2.3. Estimation and justification of the cost-effectiveness of the controls (ratio between

the control costs and the value of the related funds managed), and assessment of the

expected levels of risk of error (at payment & at closure)

The initiative involves limited administrative expenditure. Standard Commission

control procedures apply. As no funding programmes or multi-layered delivery

mechanisms are created, control activities remain straightforward and cost-effective.

Controls are carried out entirely under direct management, using standard ex-post

audits under the Commission’s internal control framework. This ensures an

appropriate balance between control effort and the limited value of funds managed.

Given the simplified set-up and the absence of high-risk financial operations, the

expected error rate at payment and at closure is low and comfortably below the

EN 10 EN

materiality threshold. The control system therefore provides a high level of assurance

at proportionate cost.

2.3. Measures to prevent fraud and irregularities

The initiative does not establish funding programmes or financial support schemes. It

therefore relies on the Commission’s existing internal control framework and Anti-

Fraud Strategy. Standard preventive and detective measures apply, including risk-

based internal controls, segregation of duties and established workflows for

administrative expenditure.

The Commission will ensure that appropriate measures are in place so that, when

implementing the tasks arising from this Regulation, the financial interests

As with all Commission-managed activities, the European Anti-Fraud Office

(OLAF) and the European Public Prosecutor’s Office (EPPO) may exercise their

powers in accordance with their respective legal bases to investigate fraud,

corruption or other illegal activities affecting the EU’s financial interests. The

European Court of Auditors retains its standard audit rights over Commission

expenditure.

EN 11 EN

3. ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE

3.1. Heading(s) of the multiannual financial framework and expenditure budget

line(s) affected

Existing budget lines

In order of multiannual financial framework headings and budget lines.

Heading

of

multiannu

al

financial

framewor

k

Budget line Type of

expenditu

re Contribution

Number

Diff./Non

-diff.70

from

EFTA

countrie

s71

from

candidate

countries

and

potential

candidate

s72

From

other

third

countrie

s

other assigned

revenue

1 03 02 01 02 Diff. Yes No No No

7 20 01 02 01 Non-

diff. No No No No

New budget lines requested

In order of multiannual financial framework headings and budget lines.

Heading

of

multiannu

al

financial

framewor

k

Budget line Type of

expenditu

re Contribution

Number

Diff./Non

-diff.

from

EFTA

countrie

s

from

candidate

countries

and

potential

candidate

s

from

other

third

countrie

s

other assigned

revenue

N/A

70 Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations. 71 EFTA: European Free Trade Association. 72 Candidate countries and, where applicable, potential candidates from the Western Balkans.

EN 12 EN

3.2. Estimated financial impact of the proposal on appropriations

3.2.1. Summary of estimated impact on operational appropriations

–  The proposal/initiative does not require the use of operational appropriations

–  The proposal/initiative requires the use of operational appropriations, as explained below

3.2.1.1. Appropriations from voted budget

Heading of multiannual financial framework 1 ‘Single Market, Innovation and Digital’

EUR million (to three decimal places)

DG: GROW Year Year Year Year TOTAL MFF

2021-2027

TOTAL MFF

2028-203473 2024 2025 2026 2027

Operational appropriations

03 02 01 02 Commitments (1a) 0.000 0.000 0.000 0.040 0.040 0.140

Payments (2a) 0.000 0.000 0.000 0.040 0.040 0.140

TOTAL appropriations

for DG GROW

Commitments =1a+1b 0.000 0.000 0.000 0.040 0.040 0.140

Payments =2a+2b 0.000 0.000 0.000 0.040 0.040 0.140

EUR million (to three decimal places)

DG: GROW Year Year Year Year Year Year Year TOTAL

MFF

2028-203474 2028 2029 2030 2031 2032 2033 2034

Operational appropriations

03 02 01 02 Commitments (1a) 0.020 0.020 0.020 0.020 0.020 0.020 0.020 0.140

Payments (2a) 0.020 0.020 0.020 0.020 0.020 0.020 0.020 0.140

TOTAL appropriations Commitments =1a+1b 0.020 0.020 0.020 0.020 0.020 0.020 0.020 0.140

73 Figures in the tables above are all strictly indicative pending the outcome of the 2028-2034 MFF negotiations which cannot be prejudged. 74 Figures in the tables above are all strictly indicative pending the outcome of the 2028-2034 MFF negotiations which cannot be prejudged.

EN 13 EN

for DG GROW Payments =2a+2b 0.020 0.020 0.020 0.020 0.020 0.020 0.020 0.140

EUR million (to three decimal places)

Year Year Year Year TOTAL MFF

2021-2027

TOTAL MFF

2028-203475 2024 2025 2026 2027

TOTAL operational appropriations

Commitments (4) 0.000 0.000 0.000 0.040 0.040 0.140

Payments (5) 0.000 0.000 0.000 0.040 0.040 0.140

TOTAL appropriations of an administrative nature financed from

the envelope for specific programmes (6) 0.000 0.000 0.000 0.000 0.000 0.000

TOTAL appropriations under

HEADING 1 Commitments =4+6 0.000 0.000 0.000 0.040 0.040 0.140

of the multiannual financial

framework Payments =5+6 0.000 0.000 0.000 0.040 0.040 0.140

EUR million (to three decimal places)

Year Year Year Year Year Year Year TOTAL

MFF

2028-203476 2028 2029 2030 2031 2032 2033 2034

TOTAL operational

appropriations

(including contribution to

decentralised agency)

Commitments (4) 0.020 0.020 0.020 0.020 0.020 0.020 0.020 0.140

Payments (5) 0.020 0.020 0.020 0.020 0.020 0.020 0.020 0.140

TOTAL appropriations of an administrative

nature financed from the envelope for specific

programmes

(6) 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

75 Figures in the tables above are all strictly indicative pending the outcome of the 2028-2034 MFF negotiations which cannot be prejudged. 76 Figures in the tables above are all strictly indicative pending the outcome of the 2028-2034 MFF negotiations which cannot be prejudged.

EN 14 EN

TOTAL appropriations under

HEADING 1 Commitments =4+6 0.020 0.020 0.020 0.020 0.020 0.020 0.020 0.140

of the multiannual financial

framework Payments =5+6 0.020 0.020 0.020 0.020 0.020 0.020 0.020 0.140

EUR million (to three decimal places)

Year Year Year Year TOTAL

MFF

2021-2027

TOTAL

MFF

2028-

203477

2024 2025 2026 2027

• TOTAL operational appropriations (all

operational headings)

Commitments (4) 0.000 0.000 0.000 0.040 0.040 0.140

Payments (5) 0.000 0.000 0.000 0.040 0.040 0.140

• TOTAL appropriations of an administrative nature financed from

the envelope for specific programmes (all operational headings) (6) 0.000 0.000 0.000 0.000 0.000 0.000

TOTAL appropriations Under

Heading 1 to 6 Commitments =4+6 0.000 0.000 0.000 0.040 0.040 0.140

of the multiannual financial framework

(Reference amount) Payments =5+6 0.000 0.000 0.000 0.040 0.040 0.140

EUR million (to three decimal places)

Year Year Year Year Year Year Year TOTAL

MFF

2028-203478 2028 2029 2030 2031 2032 2033 2034

• TOTAL operational

appropriations (all operational

headings)

Commitments (4) 0.020 0.020 0.020 0.020 0.020 0.020 0.020 0.140

Payments (5) 0.020 0.020 0.020 0.020 0.020 0.020 0.020 0.140

77 Figures in the tables above are all strictly indicative pending the outcome of the 2028-2034 MFF negotiations which cannot be prejudged. 78 Figures in the tables above are all strictly indicative pending the outcome of the 2028-2034 MFF negotiations which cannot be prejudged.

EN 15 EN

• TOTAL appropriations of an administrative

nature financed from the envelope for specific

programmes (all operational headings)

(6) 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

TOTAL appropriations

Under Heading 1 to 6 Commitments =4+6 0.020 0.020 0.020 0.020 0.020 0.020 0.020 0.140

of the multiannual financial

framework

(Reference amount)

Payments =5+6 0.020 0.020 0.020 0.020 0.020 0.020 0.020 0.140

Heading of multiannual financial framework 7 ‘Administrative expenditure’

EUR million (to three decimal places)

DG: GROW

Year Year Year Year TOTAL

MFF 2021-

2027

TOTAL

MFF

2028-

203479 2024 2025 2026 2027

 Human resources 0.000 0.000 0.000 1.164 1.164 8.148

 Other administrative expenditure 0.000 0.000 0.000 0.000 0.000 0.000

TOTAL DG GROW Appropriations 0.000 0.000 0.000 1.164 1.164 8.148

TOTAL appropriations under HEADING 7 of the multiannual

financial framework

(Total

commitments

= Total

payments)

0.000 0.000 0.000 1.164 1.164 8.148

EUR million (to three decimal places)

79 Figures in the tables above are all strictly indicative pending the outcome of the 2028-2034 MFF negotiations which cannot be prejudged.

EN 16 EN

Year Year Year Year TOTAL

MFF 2021-

2027

TOTAL

MFF 2028-

203480 2024 2025 2026 2027

TOTAL appropriations under HEADINGS 1 to 7 Commitments 0.000 0.000 0.000 1.204 1.204 8.288

of the multiannual financial framework Payments 0.000 0.000 0.000 1.204 1.204 8.288

Heading of multiannual financial framework 7 ‘Administrative expenditure’[1]

EUR million (to three decimal places)

DG: GROW Year Year Year Year Year Year Year TOTAL MFF

2028-203481 2028 2029 2030 2031 2032 2033 2034

 Human resources 1.164 1.164 1.164 1.164 1.164 1.164 1.164 8.148

 Other administrative expenditure 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

TOTAL DG GROW Appropriations 1.164 1.164 1.164 1.164 1.164 1.164 1.164 8.148

TOTAL appropriations

under HEADING 7

of the multiannual financial

framework

(Total

commitments

= Total

payments)

1.164 1.164 1.164 1.164 1.164 1.164 1.164 8.148

EUR million (to three decimal places)

Year Year Year Year Year Year Year TOTAL MFF

2028-203482 2028 2029 2030 2031 2032 2033 2034

80 Figures in the tables above are all strictly indicative pending the outcome of the 2028-2034 MFF negotiations which cannot be prejudged. 81 Figures in the tables above are all strictly indicative pending the outcome of the 2028-2034 MFF negotiations which cannot be prejudged. 82 Figures in the tables above are all strictly indicative pending the outcome of the 2028-2034 MFF negotiations which cannot be prejudged.

EN 17 EN

TOTAL appropriations

under HEADINGS 1 to 7 Commitments 1.184 1.184 1.184 1.184 1.184 1.184 1.184 8.288

of the multiannual financial framework Payments 1.184 1.184 1.184 1.184 1.184 1.184 1.184 8.288

3.2.2. Estimated output funded from operational appropriations (not to be completed for decentralised agencies)

Commitment appropriations in EUR million (to three decimal places)

Indicate

objectives and

outputs



Year 2024

Year 2025

Year 2026

Year 2027

Enter as many years as necessary to show the

duration of the impact (see Section1.6) TOTAL

OUTPUTS

Type83 Avera

ge cost N o

Cost N o

Cost N o

Cost N o

Cost N o

Cost N o

Cost N o

Cost Total

No

Total

cost

SPECIFIC OBJECTIVE No 184…

- Output

- Output

- Output

Subtotal for specific objective No 1 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

SPECIFIC OBJECTIVE No 2 ...

- Output

Subtotal for specific objective No 2 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

83 Outputs are products and services to be supplied (e.g. number of student exchanges financed, number of km of roads built, etc.). 84 As described in Section 1.3.2. ‘Specific objective(s)’

EN 18 EN

TOTALS 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

Indicate

objectives and

outputs Year Year Year Year Year Year Year TOTAL

2028-203485

POST GRAND

 2028 2029 2030 2031 2032 2033 2034 2034 TOTAL

OUTPUTS

Type

Average

cost No Cost No Cost No Cost No Cost No Cost No Cost No Cost No Cost No Cost No Cost

SPECIFIC OBJECTIVE No 1…

- Output 0 0.000 0 0.000

- Output 0 0.000 0 0.000

- Output 0 0.000 0 0.000

Subtotal for specific objective No 1 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

SPECIFIC OBJECTIVE No 2 ...

- Output 0 0.000 0 0.000

- Output 0 0.000 0 0.000

- Output 0 0.000 0 0.000

Subtotal for specific objective No 2 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

TOTALS 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000

85 Figures in the tables above are all strictly indicative pending the outcome of the 2028-2034 MFF negotiations which cannot be prejudged.

EN 19 EN

3.2.3. Summary of estimated impact on administrative appropriations

–  The proposal/initiative does not require the use of appropriations of an

administrative nature

–  The proposal/initiative requires the use of appropriations of an administrative

nature, as explained below

3.2.3.1. Appropriations from voted budget

EUR million (to three decimal places)

VOTED APPROPRIATIONS Year Year Year Year TOTAL

2021 -

2027

TOTAL

2028 -

2034 2024 2025 2026 2027

HEADING 7

Human resources 0.000 0.000 0.000 1.164 1.164 8.148

Other administrative expenditure 0.000 0.000 0.000 0.000 0.000 0.000

Subtotal HEADING 7 0.000 0.000 0.000 1.164 1.164 8.148

Outside HEADING 7

Human resources 0.000 0.000 0.000 0.000 0.000 0.000

Other expenditure of an administrative nature 0.000 0.000 0.000 0.000 0.000 0.000

Subtotal outside HEADING 7 0.000 0.000 0.000 0.000 0.000 0.000

TOTAL 0.000 0.000 0.000 1.164 1.164 8.148

Figures in the tables above are all strictly indicative pending the outcome of the 2028-2034

MFF negotiations which cannot be prejudged.

EUR million (to three decimal places)

VOTED

APPROPRIATIONS

Year Year Year Year Year Year Year TOTAL

2028 -

2034

POST GRAND

TOTAL 2028 2029 2030 2031 2032 2033 2034 2034

HEADING 7

Human resources 1.164 1.164 1.164 1.164 1.164 1.164 1.164 8.148 0.000 8.148

Other administrative expenditure 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

Subtotal HEADING 7 1.164 1.164 1.164 1.164 1.164 1.164 1.164 8.148 0.000 8.148

Outside HEADING 7

Human resources 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

Other expenditure of an

administrative nature 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

Subtotal outside HEADING 7 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

TOTAL 1.164 1.164 1.164 1.164 1.164 1.164 1.164 8.148 0.000 8.148

Figures in the tables above are all strictly indicative pending the outcome of the 2028-2034

MFF negotiations which cannot be prejudged.

3.2.4. Estimated requirements of human resources

–  The proposal/initiative does not require the use of human resources

EN 20 EN

–  The proposal/initiative requires the use of human resources, as explained

below

3.2.4.1. Financed from voted budget

Estimate to be expressed in full-time equivalent units (FTEs)

VOTED

APPROPRIATIONS

Year Year Year Year Year Year Year Year Year Year Year

2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034

 Establishment plan posts (officials and temporary staff)

20 01 02 01 (Headquarters and

Commission’s Representation

Offices)

0 0 0 6 6 6 6 6 6 6 6

20 01 02 03 (EU Delegations) 0 0 0 0 0 0 0 0 0 0 0

01 01 01 01 (Indirect research) 0 0 0 0 0 0 0 0 0 0 0

01 01 01 11 (Direct research) 0 0 0 0 0 0 0 0 0 0 0

Other budget lines (specify) 0 0 0 0 0 0 0 0 0 0 0

• External staff (in FTEs)

20 02 01 (AC, END from the

‘global envelope’) 0 0 0 0 0 0 0 0 0 0 0

20 02 03 (AC, AL, END and

JPD in the EU Delegations) 0 0 0 0 0 0 0 0 0 0 0

Admin. Support line

[XX.01.YY.YY]

- at

Headquarters 0 0 0 0 0 0 0 0 0 0 0

- in EU

Delegations 0 0 0 0 0 0 0 0 0 0 0

01 01 01 02 (AC, END - Indirect

research) 0 0 0 0 0 0 0 0 0 0 0

01 01 01 12 (AC, END - Direct

research) 0 0 0 0 0 0 0 0 0 0 0

Other budget lines (specify) -

Heading 7 0 0 0 0 0 0 0 0 0 0 0

Other budget lines (specify) - Outside Heading 7

0 0 0 0 0 0 0 0 0 0 0

TOTAL 0 0 0 6 6 6 6 6 6 6 6

Figures in the tables above are all strictly indicative pending the outcome of the 2028-2034

MFF negotiations which cannot be prejudged. The human resources required will be met by

staff from the DG who are already assigned to the management of the action and/or have been

redeployed within the concerned services.

The staff required to implement the proposal (in FTEs):

To be covered by

current staff

available in the

Commission

services

Exceptional additional staff*

To be financed

under Heading 7

or Research

To be financed

from BA line

To be financed

from fees

Establishment

plan posts 6

N/A

External staff

EN 21 EN

(CA, SNEs, INT)

Description of tasks to be carried out by:

Officials and temporary staff Additional staff (equivalent to 6 FTEs) will be needed to carry out the tasks

of the proposal for lead markets and FDI screening. The 6 FTE will be

redeployed within the implementing DG.

External staff

3.2.5. Overview of estimated impact on digital technology-related investments

TOTAL Digital and IT appropriations Year Year Year Year

TOTAL

MFF 2021

- 2027

TOTAL

MFF 2028

- 2034

2024 2025 2026 2027

HEADING 7

IT expenditure (corporate) 0.000 0.000 0.000 0.000 0.000 0.000

Subtotal HEADING 7 0.000 0.000 0.000 0.000 0.000 0.000

Outside HEADING 7

Policy IT expenditure on operational programmes

0.000 0.000 0.000 0.040 0.040 0.140

Subtotal outside HEADING 7 0.000 0.000 0.000 0.040 0.040 0.140

TOTAL 0.000 0.000 0.000 0.040 0.040 0.140

3.2.6. Compatibility with the current multiannual financial framework

The proposal/initiative:

–  can be fully financed through redeployment within the relevant heading of the

multiannual financial framework (MFF)

–  requires use of the unallocated margin under the relevant heading of the MFF

and/or use of the special instruments as defined in the MFF Regulation

–  requires a revision of the MFF

3.2.7. Third-party contributions

The proposal/initiative:

–  does not provide for co-financing by third parties

–  provides for the co-financing by third parties estimated below:

Appropriations in EUR million (to three decimal places)

Year 2024

Year 2025

Year 2026

Year 2027

Year 2028

Year 2029

Year 2030

Year 2031

Year 2032

Year 2033

Year 2034

Total

Specify the co-

financing body

TOTAL

appropriations

co-financed

EN 22 EN

3.3. Estimated impact on revenue

–  The proposal/initiative has no financial impact on revenue.

–  The proposal/initiative has the following financial impact:

–  on own resources

–  on other revenue

–  please indicate, if the revenue is assigned to expenditure lines

EUR million (to three decimal places)

Budget

revenue

line:

Appropriations

available for

the current

financial year

Impact of the proposal/initiative86

Year

2024

Year

2025

Year

2026

Year

2027

Year 2028

Year 2029

Year 2030

Year 2031

Year 2032

Year 2033

Year 2034

Article

………….

4. DIGITAL DIMENSIONS

4.1. Requirements of digital relevance

If the policy initiative is assessed as having no requirement of digital relevance:

Justification of why digital means cannot be used to enhance policy implementation and why

the ‘digital by default’ principle is not applicable.

N/A

Otherwise:

High-level description of the requirements of digital relevance and related categories (data,

process digitalisation & automation, digital solutions and/or digital public services)

Reference

to the

requirement

Requirement description

Actor(s)

affected or

concerned by

the

requirement

High-level

Processes Categories

Article 4

Making available a single access point at national

level connecting all relevant public authorities, in

order to ensure that permit-granting procedures for

industrial manufacturing are carried out through

fully digital means.

Member States

National

competent

authorities

Economic

Operators

Permit granting

Data

Digital

Solution

Digital Public

Service

Process

digitalisation

and

86 As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net

amounts, i.e. gross amounts after deduction of 20% for collection costs.

EN 23 EN

automation

Article 5

Orchestration of national permit-granting

procedures to enable a one-stop-shop for permitting

of industrial manufacturing projects.

Member States

National

competent

authorities

Permit granting

Data

Process

digitalisation

and

automation

Article 6

The application of streamlined administrative and

permit-granting processes, as defined by Regulation

(EU) 2024/1735, is extended to cover energy-

intensive industry decarbonisation projects.

Member States

National

competent

authorities

Permit granting

Process

digitalisation

and

automation

Article 20

Monitoring and publishing of the global

manufacturing capacity for emerging strategic

sectors.

European

Commission Monitoring Data

Article 16 Notification of planned direct investments by

foreign investors.

Economic

operators

Member states

Notifications Data

Article 17 Review and approval procedure for prior

notifications of planned direct investments.

Member states

European

Commission

Notifications

Process

digitalisation

and

automation

Article 19-

20 Monitoring of foreign investment compliance

National

competent

authorities

European

Commission

Reporting Data

Article 22

Notification of designated industrial manufacturing

acceleration areas, including required assessments,

by Member States.

Member States

European

Commission

Notifications Data

Article 24

Establishing of an aggregated baseline permit that

authorises industrial activities in designated

acceleration areas.

Member States

National

competent

authorities

Permit granting

Process

digitalisation

and

automation

Article 37

List of areas of information relevant for citizens and

business exercising their internal market rights

established by Regulation (EU) 2018/1724 is

extended by information on permit-granting

procedures, effectively utilising solutions under the

Single Digital Gateway.

European

Commission

Member States

National

competent

authorities

Economic

operators

Citizens

Information

sharing

Data

Process

digitalisation

and

automation

Digital Public

Service

4.2. Data

High-level description of the data in scope

EN 24 EN

Type of data Reference to the

requirement(s)

Standard and/or specification (if

applicable)

Permit-granting applications for

industrial manufacturing projects

Article 4, Article 5 The Commission is empowered to adopt

implementing acts to set out technical

standards necessary to ensure the

interoperability of the national single access

points.

Data on global manufacturing

capacity for emerging strategic

sectors

Article 20 The Commission shall provide and publish

updated information on the most recent year

for which data is available for each of the

emerging strategic sectors.

Prior notification of planned

investments by foreign investors

Article 16 N/A

Reports on foreign investment

compliance

Article 19-20 N/A

Notification of designated

industrial manufacturing

acceleration areas

Article 22 N/A

Alignment with the European Data Strategy

Explanation of how the requirement(s) are aligned with the European Data Strategy

This legislative initiative is in line with the use of privately-held data by government

authorities (business-to-government – B2G) in order to ensure evidence-driven policy

decisions. The digital permitting system shall be designed to ensure interoperability and

automated data exchange between competent authorities, the re-use of data and documents

already held by public authorities, a high level of cybersecurity and information integrity, as

well as transparency and accountability in the permit-granting procedure.

Alignment with the once-only principle

Explanation of how the once-only principle has been considered and how the possibility to

reuse existing data has been explored

Re-use of data already held by public authorities is ensured. The permit-granting procedures

are added in the scope of Single Digital Gateway and Once-Only Technical System. The

‘once-only principle’ is respected in this case to minimise administrative burden on actors

operating in the Single Market. Member States and the Commission shall ensure the

protection of business confidential information.

Explanation of how newly created data is findable, accessible, interoperable and reusable,

and meets high-quality standards

The Commission shall, by means of implementing acts, establish detailed rules, technical

standards, and procedures necessary to ensure the interoperability, security, and effective

functioning of the digital permitting systems.

Data flows

High-level description of the data flows

EN 25 EN

Type of data Reference(s) to the

requirement(s)

Actor who

provides the

data

Actor who

receives the data

Trigger for the

data exchange

Frequency (if

applicable)

Permit-granting

applications

Article 4 Economic

Operator

National

Competent

Authority

Required for

permit-granting

applications.

N/A

Prior notification of

planned investments

by foreign investors

Article 16 Economic

operator

National

competent

authority

Upon the

intention to

realise

investment

N/A

Reports on foreign

investment

compliance

Article 19-20 National

competent

authority

European

Commission

Upon request N/A

Decision on

designated industrial

manufacturing

acceleration areas

Article 22 Member State European

Commission

Decision made N/A

4.3. Digital solutions

For each digital solution, please provide the reference to the requirement(s) of digital

relevance concerning it, a description of the digital solution's mandated functionality, the

body that will be responsible for it, and other relevant aspects such as reusability and

accessibility. Finally, explain whether the digital solution intends to make use of AI

technologies.

Digital

solution

Reference(s)

to the

requirement(s)

Main

mandated

functionalities

Responsible

body

How is accessibility

catered for?

How is reusability

considered?

Use of AI

technologies

(if

applicable)

Digital

Permitting

System

Article 4 Permit-granting

procedures for

industrial

manufacturing

are carried out

through fully

digital means.

The system shall

provide a single

user interface

enabling

interaction with

the relevant

public services.

The digital

permitting

system shall

enable the

paperless

submission,

tracking, and

decision-making

Member

States

National

Competent

Authorities

The digital

permitting system

shall enable the

paperless

submission,

tracking, and

decision-making of

permit applications

and shall be

designed to ensure

user-friendliness and

accessibility for all

applicants, including

persons with

disabilities.

The digital

permitting system

shall enable the

paperless

submission,

tracking, and

decision-making of

permit applications

and shall be

designed to ensure

re-use of data and

documents already

held by public

authorities.

//

EN 26 EN

of permit

applications.

For each digital solution, explanation of how the digital solution complies with applicable

digital policies and legislative enactments

Digital Permitting System

Digital and/or sectorial policy

(when these are applicable) Explanation on how it aligns

AI Act N/A

EU Cybersecurity framework The National Digital Permitting System shall be designed to ensure a high level

of data protection, cybersecurity, and integrity of information.

eIDAS //

Single Digital Gateway and

IMI

The Single Digital Gateway Regulation is amended to include in its scope

Information on permit-granting procedures for industrial manufacturing

projects and procedures related to industrial manufacturing projects.

Others Once-Only Technical System

4.4. Interoperability assessment

High-level description of the digital public service(s) affected by the requirements

Digital public

service or category

of digital public

services

Description

Reference(s)

to the

requirement(s)

Interoperable

Europe

Solution(s)(NOT

APPLICABLE)

Other

interoperability

solution(s)

Digital Permitting

System

Category of digital

public services

according to COFOG

04.7.4

Member States shall enable a national

a digital permitting system connecting

all relevant public authorities, in order

to ensure that permit-granting

procedures for industrial

manufacturing are carried out through

fully digital means.

Article 4 // Once-Only

Technical

System

Assessment of the impact of the requirement(s) on cross-border interoperability

Digital public service #1: Digital Permitting System

Assessment Measure(s) Potential remaining barriers

(if applicable)

Organisational

measures for a

smooth cross-border

digital public

services delivery

Member States shall be responsible for the development,

operation, maintenance, security, and supervision of their

digital permitting systems. To the extent possible, the

implementation of the digital permitting systems should

make use of existing Union digital infrastructures,

catalogues and building blocks, including those

developed under the Once-Only Technical System and its

implementing acts. This would promote complementarity,

interoperability and the efficient use of public resources,

Additional organisational

measures at national level may

be needed to ensure

appropriate involvement of

competent authorities

responsible for individual

permits.

EN 27 EN

while avoiding duplication of existing digital solutions.

Measures taken to

ensure a shared

understanding of the

data

The Commission shall, by means of implementing acts,

establish detailed rules, technical standards, and

procedures necessary to ensure the interoperability,

security, and effective functioning of the digital

permitting systems. The permit-granting procedures are

added in the scope of Single Digital Gateway and Once-

Only Technical System.

Use of commonly

agreed open

technical

specifications and

standards

The Commission shall, by means of implementing acts,

establish detailed rules, technical standards, and

procedures necessary to ensure the interoperability,

security, and effective functioning of the digital

permitting systems.

4.5. Measures to support digital implementation

For each measure to support digital implementation, please fill in the table below

Description of the

measure

Reference(s) to the

requirement(s)

Commission role (if

applicable)

Actors to be

involved (if

applicable)

Expected

timeline (if

applicable)

Implementing Acts Article 4, 13, 31 Implementing Acts European

Commission

EN EN

EUROPEAN COMMISSION

Brussels, 4.3.2026

COM(2026) 100 final

ANNEXES 1 to 4

ANNEXES

to the

Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE

COUNCIL

establishing a framework of measures for the acceleration of industrial capacity and

decarbonisation in strategic sectors and amending Regulations (EU) 2018/1724, (EU)

2024/1735 and (EU) 2024/3110

{SEC(2026) 70 final} - {SWD(2026) 70 final} - {SWD(2026) 71 final} -

{SWD(2026) 72 final}

EN 1 EN

TABLE OF CONTENTS

ANNEX I

Strategic sectors for industrial manufacturing acceleration areas .............................................. 2

ANNEX II

Low-carbon and Union origin requirements for energy intensive industries ............................ 2

Part I – Public procurement procedures ..................................................................................... 2

Part II – Other forms of public intervention ............................................................................... 2

ANNEX III

Union origin requirements for vehicles ...................................................................................... 4

Part I – Public procurement procedures of electric vehicles ...................................................... 4

Part II – Other forms of public intervention and financial support for corporate vehicles ........ 5

Part III – Super credits for small zero-emission vehicles ........................................................... 6

ANNEX IV

Amendment to Regulation (EU) 2018/1724 .............................................................................. 7

EN 2 EN

ANNEX I

Strategic sectors for industrial manufacturing acceleration areas

1. Energy-intensive industries:

(a) Manufacture of paper and paper products, as classified under NACE Code

C17;

(b) Manufacture of coke and refined petroleum products, as classified under

NACE Code C19;

(c) Manufacture of chemicals and chemical products, as classified under NACE

Code C20;

(d) Manufacture of rubber and plastic products, as classified under NACE Code

C22;

(e) Manufacture of other non-metallic minerals, as classified under NACE Code

C23;

(f) Manufacture of basic metals, as classified under NACE Code C24.

2. Automotive industry: Manufacture of motor vehicles, trailers and semi-trailers, as

classified under NACE Code C29;

3. Net-zero technologies, as referred to in Article 4(1) of Regulation (EU) 2024/1735;

ANNEX II

Low-carbon and Union origin requirements for energy intensive industries

Part I – Public procurement procedures

Where, in the context of public procurement procedures launched on or after 1 January 2029

falling within the scope of Directives 2014/23/EU, 2014/24/EU or 2014/25/EU, where the

contracts, works contracts or work concessions include the procurement of products from

energy intensive industries, contracting authorities shall require the following minimum

percentage shares:

(a) Steel, and any product the performance of which depends mainly on steel,

intended for use in buildings, infrastructure and motor vehicles for civil

purposes: at least 25% of the total volume of steel used shall be low-carbon;

(b) concrete and mortar, and any product the performance of which depends

mainly on concrete and mortar, intended for use in buildings and infrastructure

for civil purposes: at least 5% of the total volume of concrete and mortar used,

including the clinker and cement used to produce them, shall be low-carbon

and of Union origin;

(c) aluminium, and any product the performance of which depends mainly on

aluminium, intended for use in buildings, infrastructure and motor vehicles for

civil purposes: at least 25% of the total volume of aluminium used shall be

low-carbon and of Union origin.

Part II – Other forms of public intervention

For schemes established or updated on or after 1 January 2029 that benefit households or

companies and that primarily aim to support the construction or renovation of buildings for

residential and commercial purposes and infrastructure and the lease and purchase of motor

vehicles for civil purposes, Member States, regional or local authorities, bodies governed by

public law or associations formed by one or more such authorities or one or more such bodies

EN 3 EN

governed by public law, shall ensure that only beneficiaries that comply with the following

minimum requirements, are eligible.

(a) steel, and any product the performance of which depends primarily on steel : at

least 25% of the total volume of steel used in the product or project that

receives support shall be low-carbon;

(b) concrete and mortar, and any product the performance of which depends

mainly on concrete and mortar: at least 5% of the total volume of concrete and

mortar used, including the clinker and cement used to produce them, in the

product or project that receives support shall be low-carbon and of Union

origin;

(c) aluminium, and any product the performance of which depends mainly on

aluminium: at least 25% of the total volume of aluminium used in the product

or project that receives support shall be low-carbon and of Union origin.

EN 4 EN

ANNEX III

Union origin requirements for vehicles

Part I – Public procurement procedures of electric vehicles

New pure electric vehicles (PEV), off-vehicle charging hybrid electric vehicles (OVC-HEV)

or fuel cell vehicles (FCV) purchased, leased, rented or hire-purchased in public procurement

procedures that fall within the scope of Directive 2014/24/EU, or Directive 2014/25/EU,

launched on or after [OP: Please insert the date = six months after the date of entry into force

of this Regulation] shall comply with the Union origin requirements set out in this Annex.

New PEV, OVC-HEV and FCV that are used for the provision of services sourced through

public procurement procedures that fall within the scope of Directive 2014/24/EU, or

Directive 2014/25/EU, shall comply with the Union origin requirements set out in this Annex.

Vehicles referred to in subparagraphs 1 and 2 shall include the following Union origin

requirements:

(a) the vehicle is assembled within the Union;

(b) the ratio between the total ex-works price of vehicle components - excluding

the vehicle battery - originating in the Union and the total ex-works price of all

components – excluding the battery – is at least 70%;

(c) the vehicle’s traction battery contains at least three main specific components

of batteries, among which the battery cells, originating in the Union;

(d) the vehicle’s traction battery contains at least five main specific components of

batteries, among which the battery cells, the cathode active material, and the

battery management system, originating in the Union;

(e) the ratio between the total ex-works price of e-powertrain components

originating in the Union and the total ex-works price of all e-powertrain

components is at least 50%;

(f) the ratio between the total ex-works price of main electronic systems

originating in the Union and the total ex-works price of all main electronic

systems is equal to or greater than 50%.

The requirements set out in points d), e) and f) apply from [OP: please insert date 3 years after

the date of entry into force of this Regulation].

By way of derogation to the requirements set out above, small electric vehicles of subcategory

M1E, as defined in Regulation (EU) 2018/858, shall include the following Union origin

requirements:

1. the vehicle is assembled within the Union;

2. and one of the two criteria below:

(a) the ratio between the total ex-works price of vehicle components - excluding

the vehicle battery - originating in the Union and the total ex-works price of all

vehicle components – excluding the battery – is equal to or greater than 70%;

or

(b) the vehicle’s traction battery contains at least three main specific components

of batteries, among which the battery cells, originating in the Union.

Upon request of a vehicle manufacturer, all PEV, OVC-HEV or FCV from that vehicle

manufacturer can be considered compliant, for a period of twelve months, with the Union

EN 5 EN

origin requirements if the manufacturer demonstrates that the total number of all PEV, OVC-

HEC or FCV vehicles compliant with the Union origin requirements that were assembled by

that vehicle manufacturer during the period comprised between 1 January and 31 December

(included) of the previous year represent a percentage equal or greater than 85% of the total

number of PEV, OVC-HEV or FCV from the same vehicle manufacturer that were registered

within the Union in the same period.

Where public procurement procedures concern public service contracts referred to in

subparagraph 2, vehicles already registered in the Union shall be deemed to comply with the

requirements set out in this Annex until 31 December 2035.

Part II – Other forms of public intervention and financial support for corporate vehicles

For schemes established or updated after [OP: Please insert the date = six months after the

date of entry into force of this Regulation] that support the purchase, lease, rent or hire-

purchase of new PEV, OVC-HEV or FCV, Member States, regional or local authorities,

bodies governed by public law or associations formed by one or more such authorities or one

or more such bodies governed by public law shall ensure that only vehicles that comply with

the below minimum Union origin requirements are eligible under the scheme.

For the purpose of considering corporate cars and vans ‘made in the European Union’ in

accordance with Article 4 of the [Proposal for a Regulation of 16 December 2025 on clean

corporate vehicles], the below requirements apply.

(a) the vehicle is assembled within the Union;

(a) the ratio between the total ex-works price of vehicle components - excluding

the vehicle battery - originating in the Union and the total ex-works price of all

vehicle components – excluding the battery – is equal to or greater than 70%;

(b) the vehicle’s traction battery contains at least three main specific components

of batteries, among which the battery cells, originating in the Union;

(c) the vehicle’s traction battery contains at least five main specific components of

batteries, among which the battery cells, the cathode active material, and the

battery management system, originating in the Union;

(d) the ratio between the total ex-works price of e-powertrain components

originating in the Union and the total ex-works price of all e-powertrain

components is equal to or greater than 50%;

(e) the ratio between the total ex-works price of main electronic systems

originating in the Union and the total ex-works price of all main electronic

systems is equal to or greater than 50%.

The requirements set out in points d), e) and f) apply from [OP: please insert date three years

after the date of entry into force of this Regulation].

By way of derogation to the requirements set out above, small electric vehicles of subcategory

M1E, as defined in Regulation (EU) 2018/858, shall include the following Union origin

requirements:

1. the vehicle is assembled within the Union;

2. one of the two criteria below:

(a) the ratio between the total ex-works price of vehicle components - excluding

the vehicle battery - originating in the Union and the total ex-works price of all

EN 6 EN

vehicle components – excluding the battery – is equal to or greater than 70%;

or

(b) the vehicle’s traction battery contains at least three main specific components

of batteries, among which the battery cells, originating in the Union.

Upon request of a vehicle manufacturer, all PEV, OVC-HEV or FCV from that vehicle

manufacturer can be considered compliant, for a period of twelve months, with the Un ion

origin requirements if the manufacturer demonstrates that all PEV, OVC-HEV or FCV

compliant with the Union origin requirements that were assembled by that vehicle

manufacturer during the period comprised between 1 January and 31 December (included) of

the previous year represent a percentage equal or greater than 85% of the total number of

PEV, OVC-HEV or FCV from the same vehicle manufacturer that were registered within the

Union in the same period.

Part III – Super credits for small zero-emission vehicles

For the purpose of considering vehicles as “made in the EU” in accordance with Article 5 of

Regulation (EU) 2019/631 [as amended by the Proposal for a Regulation of 16 December

2025 amending Regulation (EU) 2019/631 as regards CO2 emission performance standards

for new light duty vehicles and vehicle labelling], the following criteria apply:

1. the vehicle is assembled within the Union;

2. and one of the two criteria below:

(a) the ratio between the total ex-works price of vehicle components - excluding

the vehicle battery - originating in the Union and the total ex-works price of all

vehicle components – excluding the battery – is equal to or greater than 70%;

or

(b) the vehicle’s traction battery contains at least three main specific components

of batteries, among which the battery cells, originating in the Union.

EN 7 EN

ANNEX IV

Amendment to Regulation (EU) 2018/1724

Annexes I and II are amended as follows:

1. Annex I is amended as follows:

(a) the following row ‘Permit-granting procedures’ is added in the table for ‘Areas

of information related to businesses’ before the row ‘AJ. Critical raw materials

projects’:

‘Permit granting processes Information on permit-granting procedures

for industrial manufacturing projects

including Net-zero technology

manufacturing and critical raw material

projects.’;

(b) in row ‘R. Net-zero technology manufacturing projects’, in the second column,

point 1 is deleted;

(c) in row ‘AJ. Critical raw materials projects’, in the second column, point 2 is

deleted;

2. Annex II is amended as follows:

(a) row ‘Starting, running, and closing business’ is amended as follows:

(a) in the second column, the following second subparagraph is added:

‘Permission for exercising a business activity, including procedures

related to all relevant permits to build and operate critical raw materials

projects1, procedures for all relevant permits to build, expand, convert

and operate net-zero technology manufacturing projects2, and procedures

related to industrial manufacturing projects.’; 

(b) in the third column, the following second subparagraph is added:

‘Confirmation of the request for permission for business activity, as well

as all outputs pertaining to the procedures related to critical raw material,

net-zero technology manufacturing and manufacturing industry

projects (ranging from the acknowledgement that the application is

complete to the notification of the comprehensive decision on the

outcome of the procedure, including by the designated contact point).’;

(b) rows ‘Critical raw materials projects’ and ‘Net-zero technology manufacturing

projects’ are deleted.

1 Procedure related to all relevant permits to build and operate critical raw materials projects, including

building, chemical and grid connection permits and environmental assessments and authorisations

where these are required, and encompassing all applications and procedures from the acknowledgment

that the application is complete to the notification of the comprehensive decision on the outcome of the

procedure by the single point of contact concerned pursuant to Article 9 of Regulation (EU) 2024/1252. 2 Procedures for all relevant permits to build, expand, convert and operate netzero technology

manufacturing projects, and net-zero strategic projects, including building, chemical and grid

connection permits, environmental assessments and authorisations where required, and encompassing

all applications and procedures.

    Resolutsiooni liik: Riigikantselei resolutsioon Viide: Majandus- ja Kommunikatsiooniministeerium /  / ; Riigikantselei /  / 2-5/26-00559

Resolutsiooni teema: Tööstuse kiirendamise õigusakt

Adressaat: Majandus- ja Kommunikatsiooniministeerium Ülesanne: Tulenevalt Riigikogu kodu- ja töökorra seaduse § 152` lg 1 p 2 ning Vabariigi Valitsuse reglemendi § 3 lg 4 palun valmistada ette Vabariigi Valitsuse seisukoha ja otsuse eelnõu järgneva algatuse kohta, kaasates seejuures olulisi huvigruppe ja osapooli:

- Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing a framework of measures for the acceleration of industrial capacity and decarbonisation in strategic sectors and amending Regulations (EU) 2018/1724, (EU) 2024/1735 and (EU) 2024 /3110, COM(2026)100

EISi toimiku nr: 26-0052 Tähtaeg: 17.04.2026

Adressaat: Justiits- ja Digiministeerium, Kaitseministeerium, Kliimaministeerium, Rahandusministeerium, Riigikantselei, Välisministeerium Ülesanne: Palun esitada oma sisend Majandus- ja Kommunikatsiooniministeeriumile seisukohtade kujundamiseks antud eelnõu kohta (eelnõude infosüsteemi (EIS) kaudu). Tähtaeg: 07.04.2026

Lisainfo: Eelnõu on kavas arutada valitsuse 30.04.2026 istungil ja Vabariigi Valitsuse reglemendi § 6 lg 6 kohaselt sellele eelneval nädalal (22.04.2026) EL koordinatsioonikogus. Esialgsed materjalid EL koordinatsioonikoguks palume esitada hiljemalt 17.04.2026. 

Kinnitaja: Merli Vahar, Euroopa Liidu asjade direktori asetäitja Kinnitamise kuupäev: 12.03.2026 Resolutsiooni koostaja: Sandra Metste [email protected],  

.

Tööstuse kiirendamise õigusakt COM(2026) 100

Otsuse ettepanek koordinatsioonikogule

Kujundada seisukoht

Kaasvastutaja sisendi tähtpäev 07.04.2026

KOKi esitamise tähtpäev 22.04.2026

VV esitamise tähtpäev 30.04.2026

Peavastutaja Majandus- ja kommunikatsiooniministeerium, kaasvastutajad Justiits- ja digiministeerium, Kaitseministeerium, Kliimaministeerium, Rahandusministeerium, Välisministeerium, Riigikantselei JRKB.

Seisukoha valitsusse toomise alus ja põhjendus

Algatuse reguleerimisala nõuab vastavalt Eesti Vabariigi põhiseadusele seaduse või Riigikogu otsuse vastuvõtmist, muutmist või kehtetuks tunnistamist (RKKTS § 152¹ lg 1 p 1);

Algatuse vastuvõtmisega kaasneks oluline majanduslik või sotsiaalne mõju (RKKTS § 152¹ lg 1 p 2);

Selgitus: Eelnõu eesmärk on suurendada nõudlust vähese CO2-heitega Euroopa päritolu toodete ja tehnoloogia järele. Eelnõuga seatakse eesmärgiks suurendada töötleva tööstuse osakaalu ELi SKPs 2035. aastaks 20%-ni. Sellega loodetakse anda hoogu ELi töötlevale tööstusele, et aidata ettevõtetel kasvada ja luua uusi töökohti, toetades samal ajal tööstuse üleminekut puhtamale ja tulevikuvalmis tehnoloogiale.

Eelnõuga kehtestatakse tööstuse kiirendamiseks avalike hangete ja avaliku sektori toetuskavade puhul ELi päritolu ja/või vähese CO2 heite suhtes nõuded. Need kehtivad teatavates strateegilistes sektorites, ennekõike terase, tsemendi, alumiiniumi, autode ja nullnetotehnoloogia puhul. Samal ajal luuakse raamistik, mida saab vajadusel laiendada muudele suure energiakasutusega sektoritele, näiteks keemiatööstusele. Eesmärgiks on suurendada Euroopa tootmisvõimsust ning nõudlust Euroopa päritolu puhta tehnoloogia ja toodete järele. Eelnõu kohaselt peaksid liikmesriigid muu hulgas kehtestama ühtse digitaalse loamenetluse, millega tööstusprojekte kiirendada ja lihtsustada.

Selleks, et säilitada liidu turu avatus, kutsutakse eelnõus üles rakendama avalike hangete puhul rohkem vastastikkust ja tagama võrdse kohtlemise riikidele, kes võimaldavad ELi ettevõtetele pääsu oma turule. Selliste partnerite sisend, kellega liit on sõlminud vabakaubanduspiirkonna või tolliliidu loomise lepingu või kes on riigihankelepingu pooled ja kui lepingu raames kehtivad vastavad liidu kohustused, loetakse liidust pärinevaks. Muude riigi toimingute, ennekõike avaliku sektori kavade ja enampakkumiste puhul võivad

2

partnerid kuuluda eelnõu kohaldamisalasse, kui nad on sõlminud ELiga vabakaubanduslepingu või tolliliidulepingu.

Kuigi eelnõuga ei välistata välismaiseid otseinvesteeringuid, kehtestatakse sellega tingimused üle 100 miljoni euro suuruste investeeringute kohta strateegilistes sektorites, kui üksainus kolmas riik kontrollib üle 40% üleilmsest tootmisvõimsusest. Selliste investeeringutega tuleb luua kvaliteetseid töökohti, soodustada innovatsiooni ja majanduskasvu ning luua ELis tehnoloogia ja teadmussiirde kaudu reaalset väärtust. Lisaks sellele peavad need vastama kohaliku sisu nõuetele. Samuti peab Euroopa tööjõu määr olema nende puhul vähemalt 50%, et ühtsele turule pääsust saaksid lisaks investoritele kasu ka ettevõtted ja kodanikud.

Sisukokkuvõte

Kas EL algatus reguleerib karistusi või haldustrahve? Ei

Kas nähakse ette uue asutuse loomine (järelevalvelised või muud asutused)? Jah

Vajab väljaselgitamist.

Kas lahenduse rakendamine vajab IT-arendusi? Jah

Vajab väljaselgitamist.

Eesmärgid

ELis toodetud ja vähese süsinikuheitega toodete juhtivate turgude kujundamise toetamine

Eelnõuga kehtestatakse avalike hangete ja avaliku sektori toetuskavade puhul soodustingimused ELi päritolu ja vähese CO2 heitega toodetele, et suurendada nõudlust selliste Euroopa tööstustoodete järele nagu tsement ja alumiinium, aga ka nullnetotehnoloogia, näiteks akud, päikese-ja tuuleenergia, soojuspumbad ja aatomienergia. Terase puhul tehakse eelnõuga ettepanek rakendada turunõudluse loomiseks vähese CO2 heite eritingimusi.

Välismaised otseinvesteeringud peavad looma ELis lisaväärtust

Selleks, et välismaised otseinvesteeringud tugevdaksid ELi tarneahelaid, edendaksid tehnosiiret ja toetaksid kvaliteetsete töökohtade loomist, kehtestatakse eelnõuga tingimused 100 miljonit eurot ületavatele investeeringutele sellistes sektorites nagu akud, elektrisõidukid, fotogalvaanika ja kriitiline toore.

Lihtsustatud loamenetlused

Eelnõuga lihtsustatakse ja muudetakse digitaalseks tööstusprojektide loamenetlused. Selleks luuakse ühtne digitaalne kontaktpunkt, kehtestatakse konkreetsed tähtajad ja

3

hakatakse energiamahukate CO2 heite vähendamise projektide puhul loamenetluse vaheetappides rakendama vaikiva heakskiidu põhimõtet.

Kestliku tootmise edendamine

Eelnõuga luuakse tööstuse kiirendamise piirkonnad, mille eesmärk on võimaldada tööstussümbioosi ja soodustada puhta tootmise projektide kogumeid. Selliste kogumite loomisega soovitakse soodustada vajalikke investeeringuid energiataristusse ja kogu piirkonda hõlmavate lubade kasutamist. Nende piirkondade projektide käsutuses on investorite profiilianalüüs ja tugi oskuste arendamiseks.

Mõju ja sihtrühm

Vajab väljaselgitamist.

Kaasamine

Kaasata eelnõuga seotud huvirühmad.