Written by Nicolas d’Hanis
Dear reader,
After the summer break, the policy agenda is back in full swing. As institutions return to Brussels and policymakers turn their attention to the months ahead, several key files are moving forward. Read more about the developments on the Industrial Accelerator Act (IAA), the European Emission Trading System (EU ETS) Reform and the TEN-E. Additionally, we explain how the proposed new Public Procurement Act could affect European industry.
Finally, there are still a few spots available for Publyon’s event “What can Europe do to break the permitting deadlock for strategic projects?” on 30 September. Read more details in the event section.
The spotlight
The Public Procurement Act: public spending for the twin transition
On 9 September, the European Commission unveiled its proposal for a new Public Procurement Act, which signals a shift in how governments across the EU buy goods and services.
The proposal would overhaul the EU’s 2014 public procurement rules, replacing them with a single, directly applicable Regulation designed to strengthen European industrial competitiveness, accelerate the clean-tech transition, and build more resilient supply chains.
Drawing on the recommendations of the Draghi and Letta reports as well as the priorities of the Clean Industrial Deal, the Commission wants to use one of the EU’s most powerful economic levers: public spending.
With public procurement representing around 15% of EU GDP, the Commission sees government purchasing as far more than a question of getting the lowest price. The new approach would place greater emphasis on European manufacturing, decarbonisation, resilience and economic security: using public contracts to help scale strategic industries and strengthen Europe’s position in the global clean-tech race.
How will energy and utility procurement be altered?
The proposal seeks to cut red tape and make public procurement more flexible and business friendly.
Instead of relying on rigid tender formats, energy and utility buyers would have greater freedom to choose how they engage with suppliers: they could run single-round tenders with room for negotiation or create dynamic supplier pools that companies can join at any time to compete for regular contracts.
At the same time, utilities facing direct market competition can secure fast-track exemptions to bypass procurement rules altogether. For major infrastructure and first-of-a-kind clean energy projects, a new “innovation procedure” allows public bodies and utilities to fund, test, and buy emerging technologies directly from industry partners.
How will green criteria and circularity impact industry?
The proposal would make best price-quality ratio the standard for awarding contracts, moving beyond lowest-price tenders. At least 30% of award points would go to quality criteria such as life-cycle costs, circularity and greenhouse-gas impacts.
Industrial tenders would also promote recycled materials, remanufacturing and product-as-a-service models. The Act would further allow the Commission to set mandatory green procurement criteria for clean industrial products regulated under the Ecodesign Regulation, the Net-Zero Industry Act, the Batteries Regulation, and the Critical Raw Materials Act.
How will European preference and resilience rules function?
The Public Procurement Act proposal introduces a European preference mechanism allowing public buyers to favour EU and eligible third-country suppliers. Buyers could restrict tenders to these suppliers, reject bids with less than 50% EU or covered content, or award additional points for higher European content.
For critical energy and transport infrastructure, buyers would also have to strengthen resilience and security of supply through measures such as multi-source procurement, supply-chain traceability and EU-based stockpiling, reducing reliance on single-country suppliers.
What’s next?
The proposal now moves to the European Parliament and the Council of the EU. Member States will be weighing the budget impact of mandatory 30% quality criteria on regional and municipal bodies, while industry groups will look for further clarity on how European preference will work with existing trade treaties.
In the One Europe, one Market Roadmap, formal agreement is targeted for Q4 2027. Once formally adopted, the regulation includes a two-year transition period before full application, giving businesses and utilities time to adapt their supply chains and compliance systems.
Do you want to understand more on how this proposal can impact your business operations? Please reach out!
Policy updates
Parliament advances work on the Industrial Accelerator Act
Work on the Industrial Accelerator Act (IAA) is progressing in the European Parliament, with a draft report published by its three co-rapporteurs. The text would favour greater European content in strategic supply chains, introduce tighter rules for foreign investment and public support, and prevent Natura 2000 sites from being designated as industrial acceleration areas. It would also make such designations conditional on factors including their decarbonisation contribution and available grid capacity.
These proposals follow a joint hearing by INTA, ITRE and IMCO, where speakers stressed the need for “Made in EU” rules that reflect genuine European value creation rather than limited final assembly. The joint committee vote is expected on 1 December, with a possible plenary vote later that month.
European Parliament draft report backs stronger use of ETS revenues
On 15 September, rapporteur Peter Liese published his draft report on the revision of the EU Emission Trading System (EU ETS). The report would raise the share of ETS revenues that Member States must direct towards decarbonisation from 50% to 75%, while reserving half of the aviation-fuel support mechanism for RFNBOs. It would also allow biochar-based carbon removals (BCR) alongside BioCCS and DACCS, capped at 20% of the relevant allowances.
The draft comes as ENVI continues examining the Commission’s ETS revision, with all shadow rapporteurs now appointed. The committee vote is scheduled for 1 December, followed by a plenary vote provisionally planned for 14-17 December.
Parliament backs broader CBAM scope and stronger anti-circumvention rules
On 15 September, the European Parliament approved its position on expanding CBAM. Parliament would extend the mechanism beyond the Commission’s proposed 180 products by adding a wide range of downstream goods. The Parliament also voted in favour of a Temporary Decarbonisation Fund to support EU producers facing residual carbon-leakage risk in export markets. The vote clears the way for interinstitutional negotiations, although Member States have yet to agree on the proposed Temporary Decarbonisation Fund.
Separately, on 24 August, the Commission published guidance clarifying verification and accreditation requirements under the definitive CBAM regime, including the role of national accreditation bodies and independent verifiers.
European Parliament backs faster planning for cross-border energy infrastructure
On 11 September, the European Parliament’s ITRE Committee has adopted its report on the revision of the TEN-E Regulation, seeking to accelerate the development of cross-border energy infrastructure.
Members of European Parliament seeks to give the Commission a stronger role in coordinating EU-wide infrastructure planning, while introducing a common energy scenario and tools to identify gaps in electricity and hydrogen networks. Before approving new infrastructure, authorities would also need to consider whether existing networks, digital solutions or demand-side measures could address the identified need. MEPs additionally support a 12-month limit for statutory permitting and stronger scrutiny of cross-border investment and cost allocation. Interinstitutional negotiations will commence in November.
Commission proposes financial incentives to move away from fossil fuels
On 2 September, Commission Director-General for Energy Céline Gauer said that Member States “always agree, at high level,” on the principle of taxing electricity more than gas. However, she noted that difficulties arise when determining how to implement this approach in practice.
The debate follows a Commission proposal to introduce lower taxation for electricity as part of its amendment to the Internal Electricity Market Directive.
Event
Can Europe cut through the permitting maze? Clean industry, energy and transport ambitions depend on getting strategic projects off the ground, but lengthy permitting processes can stand in the way.
Join Publyon EU for a conversation with policymakers and industry leaders on how to remove bottlenecks, speed up permitting and turn Europe’s ambitions into action.
SPEAKERS:
- Jeannette Baljeu, Member of the European Parliament (Renew Europe, Netherlands)
- Kamila Waciega, Director of Energy & Infrastructure Policy, Hydrogen Europe
- Gilles Suply, Head of EU Public Affairs, Fluxys
- Eric ter Hark, Executive Chairman, Benelux Business Roundtable (BBR)
The evening will be moderated by Jan Huitema, Publyon Associate Partner and former Member of the European Parliament.
After the discussion, join us for drinks and networking.
Date: 30 September. Attendance is subject to confirmation.
SEND A REQUEST TO ATTEND
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