Following the European Commission’s official introduction of the Industrial Accelerator Act (IAA), several European industry organizations have commented on the legislation, expressing general support for its objectives while highlighting a number of shortcomings that could limit its effectiveness.
The Act aims to strengthen Europe’s industrial base and accelerate the transition toward low-carbon manufacturing, but stakeholders across different sectors argue that additional policy measures and clearer definitions will be needed to ensure the framework delivers meaningful results.
Steel industry calls for stronger “Made in Europe” rules
The European Steel Association (EUROFER) welcomed the publication of the Industrial Accelerator Act, describing it as an important step toward reinforcing European manufacturing and supporting the shift to low-carbon industrial production. However, the association warned that the current proposal may not sufficiently support green steel production within Europe. Under the legislation, at least 25 percent of steel used in public procurement and public support schemes must meet low-carbon criteria, but the regulation does not require that this steel be produced within the EU.
EUROFER cautioned that this limitation could significantly weaken the policy’s impact. Public procurement accounts for roughly 25 percent of total steel demand in Europe, meaning the proposed requirement would influence less than five percent of the overall steel market. Differences in public support schemes across EU member states also create uncertainty regarding the actual scale of future demand.
To strengthen the legislation, the association called for a clear definition of “Made in Europe” based on steel that is melted and poured within the EU and the European Economic Area. It also advocated combining both low-carbon and European origin criteria, introducing a robust labelling framework for low-carbon steel products, and ensuring access to affordable electricity to support industrial decarbonization.
Outokumpu supports European preference and clean steel demand
Finland-based stainless steel producer Outokumpu has also welcomed the proposal, stating that the legislation represents a significant step toward strengthening European industry while accelerating decarbonisation.
According to the company, the Act could increase demand for clean industrial products, improve economic security and support the transition of energy-intensive sectors toward lower-carbon production. Outokumpu particularly supports the proposed European preference in public procurement and the “Made-in-EU” requirement, arguing that these measures would ensure public spending supports low-carbon materials produced in Europe rather than indirectly subsidizing emissions embedded in imported products.
At the same time, the company urged policymakers to strengthen several elements of the proposal. Outokumpu called for the introduction of an EU low-carbon steel label that would allow manufacturers to demonstrate their greenhouse-gas performance and help buyers identify cleaner materials. The company also recommended establishing specific low-carbon criteria for stainless steel, noting that production processes and supply-chain emissions differ from those of other steel products. In addition, Outokumpu suggested extending the “Made-in-EU” requirement to explicitly include steel components in order to prevent high-emission steel parts produced outside Europe from being assembled into final products within the EU.
Automotive suppliers stress implementation risks
The European Association of Automotive Suppliers (CLEPA) stated that the legislation provides an important foundation for safeguarding European manufacturing capacity. According to the association, the inclusion of local content and critical component thresholds directly addresses growing concerns among suppliers facing competition from non-EU producers. Nevertheless, CLEPA warned that the effectiveness of the framework will depend heavily on its implementation. The association emphasized that exemptions granted to international partners must be carefully assessed to prevent circumvention through third-country imports.
While maintaining open and interconnected supply chains remains important, CLEPA argued that the regulation must include objective criteria and strong enforcement mechanisms to ensure that the policy genuinely protects European industrial capacity. The association also stressed that limiting incentives primarily to public procurement could significantly reduce the regulation’s overall impact on industrial transformation.
Environmental groups question strength of decarbonization measures
Environmental organizations have responded more cautiously to the Industrial Accelerator Act. While welcoming the European Commission’s intention to accelerate the clean industrial transition, several groups argue that the proposal does not yet include sufficiently strong safeguards to drive a rapid shift away from fossil-fuel-based production.
According to the European Environmental Bureau, the proposed 25 percent quota for low-carbon steel in public procurement may not generate substantial change. Approximately 45 percent of EU steel production already comes from electric arc furnace routes with lower emissions, meaning the requirement could simply reflect existing production patterns rather than accelerate the decarbonization of primary steelmaking.
Another major concern is the absence of a clear definition of “green steel.” The Commission has postponed the introduction of a voluntary steel label, leaving uncertainty over which products will qualify for support under the framework.
The Bureau also criticized the definition of “energy-intensive decarbonization projects” included in the proposal. The wording refers to projects that reduce emissions “to the extent technically feasible”, which they argue is too vague and could allow fossil-fuel-based technologies with only incremental efficiency improvements to receive public funding. Additional concerns have been raised about the proposed Industrial Acceleration Areas, where projects could automatically be classified as strategic and subject to simplified environmental assessments carried out at regional rather than project level.
The Bureau also noted that procurement rules could be waived if low-carbon products are considered more than 25 percent more expensive than conventional alternatives. According to critics, such exemptions could significantly weaken the practical impact of green public procurement measures.