EU Industrial Accelerator Act risks falling short without clearer rules and stronger industry alignment

Thursday, 30 April 2026 11:16:57 (GMT+3)   |   Istanbul

A cross-sector debate hosted by the European Economic and Social Committee Employers’ Group has raised concerns that the EU’s proposed Industrial Accelerator Act (IAA) may fall short of its objectives without significant revisions.

Participants included the European Steel Association (EUROFER), Cement Europe, European Automobile Manufacturers’ Association, and European Aluminum.

Lack of clarity creates uncertainty

A key concern is the absence of clear definitions for critical concepts such as “low-carbon materials” and “Made in Europe.” Industry representatives warned that without harmonized definitions, companies face uncertainty in compliance and investment decisions, particularly in capital-intensive sectors like steel and cement.

Stakeholders highlighted the risk of excessive administrative burden, noting that complex reporting, certification, and compliance requirements could turn the IAA into a bureaucratic framework rather than a practical demand-driving tool. This could delay investment decisions and slow the pace of industrial decarbonization.

One-size-fits-all approach questioned

Participants also criticized the IAA’s horizontal design, arguing that it fails to reflect sector-specific realities. Industries differ significantly in cost structures, exposure to global competition, and reliance on public procurement, raising doubts about the effectiveness of a uniform policy approach.

A major weakness identified is the lack of focus on underlying structural issues, particularly high energy costs. Industry representatives stressed that demand-side measures alone are insufficient to restore competitiveness without addressing core cost drivers.

Global competition intensifies pressure

The EU’s approach was contrasted with more coordinated industrial strategies in competing regions, which combine subsidies, local content rules, and streamlined regulation. In comparison, the EU framework was described as fragmented, potentially weakening its global competitiveness.

Concerns were also raised over governance, including the complexity of implementation, limited coordination among member states, and heavy reliance on delegated acts. These factors reduce predictability and create additional legal uncertainty.

Risk of limited real-world impact

Overall, stakeholders warned that the IAA may fail to create clear market signals or guarantee demand for low-carbon products produced within the EU. Without stronger alignment with energy and industrial policy, the framework risks remaining symbolic rather than transformative.

Industry participants concluded that the IAA requires significant adjustments, including clearer definitions, simplified procedures, and a more integrated policy approach. Such changes are seen as essential to ensure the act can effectively support both industrial competitiveness and the transition to a low-carbon economy.

ElifKefeli
Elif Kefeli
Editor

I graduated from Yeditepe University’s Department of Translation and Interpreting Studies in 2017. I joined SteelOrbis in 2021, where I currently work as a content specialist. I am writing news reports and industry-related content with a special focus on decarbonization, green steel, sustainability, and recycling.


Similar articles

German automotive suppliers back EU Industrial Accelerator Act to strengthen manufacturing

12 Aug | Steel News

Třinecké Železárny seeks stronger support for decarbonization amid EAF investment uncertainty

06 Aug | Steel News

PwC: Traditional steel production in central Europe to no longer be competitive after 2040

05 Aug | Steel News

Outokumpu backs EU ETS review, opposes slower phase-out of free allowances

22 Jul | Steel News

Germany’s crude steel output rises in H1, WV Stahl says industry needs stronger demand and competitive energy prices

21 Jul | Steel News

EC proposes extending free ETS allowances for CBAM sectors until 2038, EUROFER raises concerns

20 Jul | Steel News

EUROFER: EU must reform ETS to reflect market reality to support decarbonization

17 Jul | Steel News

ICT International: EU steel policies risk undermining Europe’s industrial base

13 Jul | Steel News

Stegra urges EU to preserve strong ETS ahead of review

10 Jul | Steel News

EUROFER: European steel industry needs affordable energy to achieve decarbonization targets

09 Jul | Steel News