The European Commission recently presented the Clean Industrial Deal (CID). This comprehensive package of measures aims to promote the competitiveness and decarbonization of European industry. This agreement aims to make industry in Europe more resilient and sustainable by reducing energy costs, increasing demand for clean products and supporting the financing of the transition to a green economy.

Main objectives of the Clean Industrial Deal:

1. Affordable energy: The Commission plans to reduce energy costs for businesses and households by accelerating the development of renewable energy and improving energy efficiency.
2. Demand for clean products: The Industrial Decarbonization Accelerator Act aims to increase demand for clean products manufactured in the EU. This includes the introduction of sustainability and resilience criteria in public and private procurement.
3. Financing the green transition: Over €100 billion is to be mobilized to support the production of clean technologies in the EU. This includes the introduction of a new framework for state aid and the strengthening of the Innovation Fund.

Impact on the Supply Chain Act:
The Supply Chain Act, which regulates corporate responsibility for compliance with human rights and environmental standards in global supply chains, will be affected by the Clean Industrial Deal. The EU Commission plans to reduce some of the bureaucratic hurdles and postpone the Supply Chain Act by one year (to June 2028). This is intended to give companies more time to adapt to the new requirements while maintaining their competitiveness. Specifically, affected companies will only have to ensure that their direct suppliers comply with human rights and environmental standards and only have to provide evidence of this every five years. In addition, civil liability for violations is to be restricted.

Further regulations and their amendments:
In addition to the Supply Chain Act, other regulations are also being adapted as part of the Clean Industrial Deal:

• Taxonomy Regulation: this regulation, which obliges investors to assess the sustainability of their investments, will be simplified in order to reduce bureaucracy.
• Sustainability reporting: Companies must continue to report on their environmental impact, but the reporting requirements will be simplified.

Sources:

Milliarden für grüne Industrie: EU schwächt Lieferkettengesetz ab – und initiiert Clean Deal

Der grüne Industrieplan – Europäische Kommission

Clean Industrial Deal

Clean Industrial Deal – European Commission

Clean Industrial Deal als Nachfolger des EU Green Deal

Clean Industrial Deal: 100-Milliarden-Plan für Europas grüne Industrie – Euractiv DE