Written by Nicolas d’Hanis
Dear reader,
The past month has seen several major publications from the European Commission, including the Industrial Accelerator Act (IAA), the new EU Ports Strategy, and the EU Industrial Maritime Strategy.
At the same time, Europe is preparing for a potential new energy crisis, which some experts say could be the biggest the EU has faced in decades, driven by geopolitical tensions in the Middle East. In this context, one might say that the newly published Clean Energy Investment Strategy comes at just the right time, as it aims to give a much-needed boost to the energy transition.
The spotlight
Clean Energy Investment Strategy to mobilise private capital
On 10 March, the European Commission launched a new Clean Energy Investment Strategy aimed at closing the funding gap for Europe’s energy transition. To achieve the EU’s 2030 climate targets while keeping energy both affordable and clean, the energy sector will need roughly €660 billion in annual investments from 2026 to 2030. Not all of that capital can come from public funds.
This strategy focuses on mobilising private capital by de-risking infrastructure projects and creating a more integrated approach to capital markets.
Let’s explore the specifics below!
Strengthening grid infrastructure and operator balance sheets
One of the key pillars of the strategy involves upgrading Europe’s power grid, which is the backbone of the energy system. The European Commission and the European Investment Bank (EIB) will provide financial support to grid operators (read: the Transmission System Operators (TSOs) and Distribution System Operators (DSOs)) for these upgrades by deploying new financial tools. These include:
- A Strategic Infrastructure Investment Fund (SII Fund), to bring in private investors alongside public funding for grid projects, and;
- An Operator Securitisation Facility (OSF), which will help grid operators turn future expected revenue streams into immediate cash.
De-risking innovation in clean energy technologies
Particular attention is given to the development of next-generation technologies to facilitate long-term emission reductions, including energy storage technologies, small modular reactors (SMRs) and offshore wind. Over the next three years, more than €75 billion will be invested by the EIB in these technologies.
How? The Commission will:
- Use venture debt and equity tools, using the InvestEU Programme, to make it safer for private investors to put money into new clean-energy technologies, and;
- Launch a pilot called “energy efficiency as a service” to help small and medium-sized enterprises adopt decarbonisation solutions more quickly.
The Energy Transition Investment Council
The Commission will establish an Energy Transition Investment Council, to keep policy and market needs aligned. This council will bring together institutional investors, Member States representatives, and Commission officials to provide strategic insights on funding challenges and regulatory hurdles. In addition, a dedicated sub-group for National Promotional Banks will coordinate public and private financing flows across the EU.
What’s next?
Looking ahead, the Energy Transition Investment Council will hold its kick-off meeting in Q2 2026. By Q4 2026, the Commission plans to release the Energy-System Needs Assessment for the Clean Transition (ENACT) along with a post-2030 legislative package (see also “Policy updates” below). These will update the scale and type of investments required and provide investors and public authorities with clearer guidance for decision-making.
Impact analysis for your business
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Policy updates
Commission launches consultations for the post-2030 energy framework
On 19 March, the European Commission launched calls for evidence and public consultations on the post-2030 legislative frameworks for renewable energy and energy efficiency, as part of efforts to achieve a 90% emissions reduction by 2040 compared to 1990 levels. The consultations focus on streamlining existing rules for energy efficiency to ensure cost-effective delivery of the target, and on scaling renewable energy to provide reliable, affordable, and carbon-free supply while accelerating electrification. At this stage, the Commission does not propose specific 2040 targets for either renewables or energy efficiency and signals a shift towards less prescriptive requirements and fewer sub-targets compared to the current framework. The calls for evidence are open until 16 April, with the public consultations running until 12 June. Legislative proposals are expected later in 2026.
Commission signals possible flexibility on state aid
On 12 March, Executive Vice-President Teresa Ribera indicated that the European Commission may consider increased flexibility in its state aid framework in response to rising energy prices linked to geopolitical tensions in the Middle East. She highlighted the role of the Carbon Industrial Support and Adjustment Framework (CISAF), which allows Member States to support industrial decarbonisation, including through temporary relief on electricity costs for energy-intensive industries. Ribera noted that the adequacy of the framework could be reassessed if prices rise further and pointed to recently revised ETS-related state aid guidelines that expand eligible sectors and aid intensities. The discussion comes amid broader political pressure on EU energy policy, including calls to revisit the EU ETS.
Member States oppose further reform to electricity market design
On 5 March, Denmark, Finland, Latvia, Luxembourg, the Netherlands, Portugal and Sweden called on the European Commission not to pursue further reforms of the EU electricity market, emphasising in a letter to Commissioner Dan Jørgensen that the current marginal pricing system should remain the cornerstone of the framework. The position comes amid ongoing concerns over high energy prices and contrasts with calls from other Member States, including Austria, for a review of the market design. The intervention signals continued political support for maintaining the existing system, although pressure to address price volatility may still result in targeted adjustments.
Industrial Accelerator Act: Commission proposes framework for low-carbon industry
On 4 March, the European Commission presented its Industrial Accelerator Act (IAA), aimed at strengthening Europe’s industrial base by scaling up low-carbon production and accelerating decarbonisation. The proposal, frequently delayed due to disagreements over “Made in Europe” provisions, keeps such requirements limited to public procurement and certain state aid schemes. It targets weak demand for low-carbon products, supply chain vulnerabilities, and slow deployment of clean technologies, focusing on sectors including steel, cement, aluminium, electric vehicles, and hydrogen. The IAA also introduces faster permitting through designated acceleration areas, as well as a framework for reviewing large foreign investments in strategic sectors.
Commission targets decarbonisation and industrial capacity in its Ports and Maritime Strategies
On 4 March, the European Commission published the EU Ports Strategy and the Industrial Maritime Strategy, aiming to position ports as key hubs for the energy transition while strengthening Europe’s maritime industrial base. The Ports Strategy promotes electrification, onshore power supply, multi-fuel hubs, and hydrogen import infrastructure, alongside closer integration with industrial clusters and faster permitting supported by EU funding. In parallel, the Industrial Maritime Strategy focuses on boosting shipbuilding, shipping, and maritime technologies, with a target to build or retrofit 7,000-10,000 sustainable and digital ships by 2035. Both strategies emphasise investment in low-carbon fuels, infrastructure, and innovation to support decarbonisation and enhance Europe’s strategic autonomy. Check our blog posts on the Ports Strategy and the Industrial Maritime Strategy.
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