The Industrial Accelerator Act, known as 'Buy European', is strengthening the EU's industrial base by targeting low-carbon products and net-zero technologies.
What is the “Buy European” initiative?
The Industrial Accelerator Act (IAA), also known as “Buy European”, is an EU legislative proposal designed to strengthen Europe’s industrial base. The IAA mobilizes public procurement and state incentives to stimulate demand for low-carbon products, European-made goods, and net-zero technologies. The proposed law mandates that when public funds are used to manufacture or purchase electric cars, wind turbines, photovoltaics and batteries, a minimum share of these technologies must be produced in Europe.
The IAA accelerates investments through faster and simpler authorization procedures and introduces targeted conditions to ensure that major foreign direct investments generate added value for the Union. In doing so, it aims to create leading markets for clean and strategically relevant industrial products.
In 2024, the EU manufacturing sector accounted for 14.3% of the EU’s GDP. The Commission’s goal is to increase the manufacturing share to 20% of the EU’s GDP by 2035, strengthening Europe’s resilience, competitiveness, and economic security.
The Act complements the “Automotive Package” adopted on December 16, 2025, defining “Made in EU” conditions to benefit from the flexibilities provided by CO2 standards for cars and vans and the “super-credit” for small, affordable electric cars, as well as conditions for accessing financial support aimed at the ecological transformation of company fleets.
The Industrial Accelerator Act: 30 million tons of carbon saved
According to European Commission estimates, the EU “Buy European” law will be a fundamental pillar for the Union’s green transition, with the potential to save approximately 30.6 million tons of CO2 by 2030. The impact assessment accompanying the legislative proposal highlights how the decarbonization of strategic sectors can drive a reduction in emissions in the next decade:
- The main contribution would come from the battery sector: incentivizing internal EU production, reducing reliance on Chinese imports, would alone allow for a reduction of 25.6 MtCO2.
- In parallel, the introduction of ambitious targets for low-emission materials would provide a decisive boost: the goal of 25% low-emission steel in the automotive and construction sectors would lead to savings of 3.4 MtCO2.
- New standards for cement (5% low-carbon) and aluminum (25% low-carbon) would prevent 0.69 and 0.22 MtCO2, respectively.
- Finally, the vehicle sector would contribute a reduction of 0.7 MtCO2, thanks to logistical optimization and shifts in production aimed at making the entire European manufacturing supply chain more efficient and less impactful climatically.
Based on the data in the impact assessment, producing batteries within the European Union will reduce emissions by almost 25% compared to a battery manufactured in China. This difference is mainly due to Europe’s energy mix, the growing share of renewable sources used, and the application of more stringent regulatory standards on energy efficiency.
Over 3 billion euros in avoided climate damage
The assessment estimates that these combined CO2 savings will generate a value exceeding 3 billion euros in terms of avoided climate damage. In cost-benefit analysis terms, the Commission views “onshoring” as a preventative investment. Beyond climate benefits, the development of a robust industrial base should ensure greater strategic autonomy, reducing reliance on external actors and geopolitical shocks.
Why strengthen “Buy European”: more sectors and stronger demand-side measures
In recent years, the EU has increased support for low-emission industrial production, but demand for these products remains weak. The Zero Emissions Platform (ZEP), a European coalition and official EU advisor on industrial carbon management and CO2 capture and storage, already highlighted last year a clear need for demand-side measures to advance low-emission industrial production in Europe. The introduction of mandatory green public procurement, with requirements for both low carbon emissions and EU origin for certain industrial sectors, is, for ZEP, an important first signal to the market.
However, the requirements apply only to a narrow range of industrial products, specifically: steel, cement and mortar, and aluminum. Furthermore, the measure is limited to public procurement and other government intervention procedures, without demand-side mandates for private buyers. To ensure that low-emission products become competitive and that investments are sustained over time, the regulatory framework should have a broader scope. More industrial sectors should benefit, catalyzing both private and public demand sources.
“The Industrial Accelerator Act aims to strengthen the competitiveness of the low-carbon industry. To succeed, both private and public demand are needed to create stronger market signals and foster effective competition and investment in clean industrial production,” commented Cristiana Foglia, Policy Officer, Zero Emissions Platform.
What are the other expected benefits?
The IAA (Industrial Advancement Act) is expected to create new high-quality jobs for the EU. Demand-side measures for low-carbon products alone could generate over 600 million euros in added value in the steel, aluminum, and cement industries by 2030, and up to 10.5 billion euros along the entire automotive value chain.
The initiative is also expected to generate tens of thousands of jobs: 85,000 in battery-related projects and 58,000 in solar production, while safeguarding existing employment in the steel, aluminum, and cement sectors during the transition to cleaner production. The digitalization of authorization procedures should, in turn, guarantee administrative savings of up to 240 million euros for all manufacturing industries in the European Union.
