The EU aims to reduce its net greenhouse gas emissions through the intermediate 2040 target of 90%. In another move towards supporting this goal and strengthening the future of sustainable industries, it recently announced the Clean Industry Deal (CID).

By focusing on a range of initiatives that support the transition to a Net Zero economy, the CID aims to promote green hydrogen, facilitate renewable energy production and carbon capture storage (CCS) projects, as well as creating employment opportunities.

Here are our some of our key takeaways.

Promoting demand for green hydrogen and low-carbon hydrogen 

• Third call under the European Hydrogen Bank in Q3 2025 (€1 billion budget) to accelerate hydrogen production.
• Launch of the Hydrogen Mechanism in Q2 2025 to mobilise and connect electrolysers and off takers, linking participants with financing de-risking hydrogen investments.
• Adoption of a delegated act in Q1 2025 to clarify regulatory rules for low-carbon hydrogen, providing certainty to investors.

Facilitating renewable energy production FIDs and long-term affordable energy for energy-intensive industries

• European Investment Bank pilot program for PPAs will be launched in Q2 2025 with €500 million through counter-guarantees from the EIB for corporate PPAs.
• Focus on SMEs, midcaps, and energy-intensive industries to facilitate long-term renewable energy contracts.
• Commission to provide guidance on contracts for difference (CfD) design and potential combinations with PPAs by Q4 2025 - promotion of CfDs to stabilise energy costs and incentivise clean energy investments.

Creating level playing field for industries and energy assets such as electorlysers and battery storage

• Recommendation on a harmonised design for network charges set for Q2 2025.
• European Grids Package expected in Q1 2026 to streamline grid investments and planning.
• Aim to reduce electricity costs for industrial consumers by integrating renewable energy more efficiently.

Pushing a market for CCS-projects - key to Net-Zero 

• Expansion of the Industrial Carbon Management Strategy to support permanent carbon removals, ensuring 50 million tonnes of CO₂ storage capacity by 2030. CCS will be supported through public procurement policies and incentives.
• Development of measures to recognize the use of captured carbon in more products.
• Inclusion of CCS in the Industrial Decarbonisation Accelerator Act to streamline permitting and deployment.

Government driving change through public procurement policies and incentives 

• Government investments will be intensified through public procurement
• Proposal for a voluntary low-carbon product label, starting with steel, to drive market incentives.
• The Industrial Decarbonization Act set to be introduced in Q4 2025 to address permitting bottlenecks for industrial electrification and clean energy access.

These initiatives represent a comprehensive approach to achieving a sustainable and Net-Zero future!