On 4 March 2026, the European Commission published a proposal for a new long-term industrial policy framework: the Industrial Accelerator Act (IAA). The proposal aims to strengthen Europe’s industrial base while accelerating decarbonisation across key sectors.

For UK manufacturers with integrated supply chains across Europe, the proposals could have important implications for investment, procurement rules and market access. Make UK has published a briefing analysing the key elements of the proposal and what they could mean for the UK manufacturing sector.

The Industrial Accelerator Act sets out a framework to increase Europe’s industrial capacity and global competitiveness while supporting the energy transition.

It brings together a range of industrial policy tools within a single regulatory framework aimed at:

  • boosting industrial competitiveness
  • accelerating decarbonisation
  • strengthening supply-chain resilience
  • shaping foreign investment in strategic sectors
  • supporting regional industrial development

The European Commission has also set an ambition for manufacturing to account for at least 20% of EU GDP by 2035.

The proposal builds on earlier initiatives such as the Clean Industrial Deal, the Competitiveness Compass and the European Economic Security Strategy.

The Commission’s proposal responds to a number of pressures facing European industry, including:

  • high energy costs
  • increasing global competition
  • the cost of industrial decarbonisation
  • limited demand for low-carbon products
  • slow and complex permitting processes
  • difficulties accessing finance

The aim is to strengthen industrial resilience while supporting the transition to a low-carbon economy.

The proposal focuses on three areas identified as strategically important:

Energy-intensive industries – including steel, cement, chemicals and aluminium.

Net-zero technologies – such as batteries, solar PV, wind, heat pumps, electrolysers and carbon capture.

The European automotive sector.

These sectors are seen as critical enablers for wider industries including construction, mobility, energy, defence and space.

The Industrial Accelerator Act includes several measures designed to accelerate industrial investment:

  • Faster planning and permitting: Strategic industrial and decarbonisation projects would benefit from coordinated digital approval processes designed to reduce timelines.
  • Demand for European industrial products: Public procurement and support schemes could include thresholds favouring EU-origin and low-carbon materials, vehicles and net-zero technologies.
  • Industrial manufacturing acceleration areas: Member States would designate zones where projects benefit from pre-cleared environmental and planning approvals.
  • Foreign investment provisions: Large foreign direct investments in emerging strategic sectors would be subject to additional value-added requirements and approval processes.

The proposal includes provisions allowing derogations for certain third-country bidders in procurement schemes. Under the current draft, the UK would by default fall within this derogation, reflecting the high level of UK-EU industrial supply chain integration.

Maintaining the UK’s position as a trusted industrial partner will be important as negotiations progress.

What happens next?

The proposal will now be considered by the European Parliament and the Council of the EU, which will review and negotiate the legislation with the European Commission before a final text is agreed.

Given the political sensitivity and technical complexity of the proposal, negotiations are expected to take time and the legislation may evolve during the process.

Make UK will continue working with government and industry partners to support the UK’s interests as the legislation develops.

Read the full briefing

Download the Make UK briefing below for a detailed analysis of the Industrial Accelerator Act and its implications for UK manufacturers.

Available resources