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Written by Eliza Druta

Dear Reader,

Hello from Brussels where business is set to bloom under the Commission’s recently launched Clean Industrial Deal! Spring cleaning isn’t just for your closet: Brussels is tidying up its industrial strategy too!

This edition unpacks the long-awaited EU’s Clean Industrial Deal, a push to make European industry greener, more competitive, and (hopefully) less buried under red tape. What does this mean for businesses? That remains to be seen, but according to the European Commission it leads to fewer roadblocks, more investment, and a shift toward Made in Europe cleantech. Plus, we break down what’s next for energy prices, circular economy rules, and the EU’s latest regulatory shake-ups.

Let’s dive in!

Europe’s bold plan for sustainable growth, the “Clean Industrial Deal”, represents a major shift for EU businesses, especially in energy-intensive sectors. Don’t miss your chance to engage with the Commission to shape this deal and influence the policy direction for the next five years.

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The spotlight

The spotlight

The Clean Industrial Deal

The European Commission has unveiled the long awaited Clean Industrial Deal (CID): its boldest move yet to align industrial competitiveness with climate goals. More than just another sustainability framework, the CID marks a strategic shift in how Europe plans to balance economic resilience, energy security, and environmental ambition.

At its core, the CID seeks to accelerate industrial decarbonisation while strengthening Europe’s position in the global clean tech race. This means tackling high energy costs, securing access to critical materials, and creating a business case for the Green Deal. Unlike previous approaches, the CID does not promise a spending spree but instead streamlines regulation, pools existing funds, and incentivises private investment to drive the transition.

 

Key elements of the Deal include:

  • Affordable energy: The Commission will push for a 32% electrification rate by 2030, back massive renewable energy investments, and introduce a €500M Power Purchase Agreement pilot to help businesses secure stable energy prices.
  • Made in Europe cleantech: With 40% of key clean tech components expected to be manufactured within the EU by 2030, the CID supports low-carbon industrial production, including carbon capture, sustainable steel, and green hydrogen.
  • Regulatory simplification: The EU will prioritise fast-tracking clean tech projects, cutting red tape, and revising public procurement rules to favour sustainable and locally produced solutions.
  • Private financing at the forefront: Rather than new subsidies, the EU is leveraging €100B in investment mechanisms, including the Industrial Decarbonisation Bank and the upcoming TechEU investment program to boost clean industrial innovation.
  • Circular economy focus: A Circular Economy Act is set for 2026, aiming to double material reuse rates and ensure more strategic recycling of critical raw materials.

The CID is technology-neutral, meaning it allows room for various low-carbon solutions, from nuclear and biogas to carbon capture and storage (CCS), to contribute to the EU’s emissions targets. But the real challenge will be implementation. The EU’s ability to cut bureaucracy, mobilise industry, and secure long-term investments will determine whether the CID becomes a catalyst for economic renewal, or just another policy ambition.

What’s next? Industry dialogues are already scheduled for 2025, focusing on automotive, steel, and chemicals. Expect heated debates on state aid rules, green subsidies, and the global competitiveness of European industry as these plans take shape.

Publyon will be your guide, providing expert insights and updates to help you navigate these changes every step of the way. Stay tuned!

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Policy updates

Policy updates

Omnibus Simplification Package: a business-friendly overhaul of EU sustainability rules

The Omnibus Simplification Package is a strategic initiative by the European Commission aimed at reducing bureaucratic complexity and regulatory burdens while maintaining the EU’s sustainability objectives. This package is a response to calls for a simplification revolution from EU Heads of State and Government, as outlined in the Budapest Declaration on the New European Competitiveness Deal. By streamlining key sustainability frameworks such as the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD), this initiative seeks to enhance legal clarity, reduce compliance costs, and improve the competitiveness of European businesses.

 

Current status

On 26 February 2025, the European Commission published proposals amending the CSRD and CSDDD, introducing significant simplifications to sustainability reporting, due diligence, and taxonomy rules. This follows the Competitiveness Compass for the EU, which committed to reducing reporting burdens by at least 25% for all businesses and 35% for SMEs.

 

Implementation timeline

  • 26 February 2025: Draft proposal presented.
  • 2026: Expected adoption and implementation.
  • 2027-2029: Phased application of revised requirements.

 

Essential insights for businesses

  • Reduced administrative burden: Mandatory sustainability reporting thresholds raised, excluding 80% of businesses from CSRD obligations. Listed SMEs and companies with fewer than 1,000 employees removed from CSRD scope.
  • Sustainability finance reforms: Simplifies compliance with the EU Taxonomy, introducing an opt-in regime for medium-sized firms. Companies not claiming environmental sustainability can avoid additional reporting obligations.
  • New ‘Small Mid-Caps’ Category: Tailored regulatory simplifications for companies between SMEs and large enterprises to ease compliance.
  • Delays in reporting deadlines: CSRD reporting for large companies (500+ employees) postponed by two years to avoid premature costs. CSDDD compliance phased in, with first wave delayed by one year to allow better preparation.
  • Sector-specific reporting standards removed: Businesses will no longer be required to adopt additional sector-specific sustainability disclosures.
  • Harmonisation of Single Market rules: Prevents regulatory gold-plating by individual Member States, ensuring uniform EU-wide compliance. Limits trickle-down reporting obligations for SMEs in supply chains.
  • Simplification of CBAM & digital compliance: Eases Carbon Border Adjustment Mechanism (CBAM) reporting for smaller market players. Digital reporting enhancements to streamline data collection and reduce administrative effort.

 

Vision for Agriculture and Food: securing EU agriculture’s competitiveness

The Vision for Agriculture and Food is an ambitious initiative by the European Commission aimed at securing food security, competitiveness, and sustainability in Europe’s agri-food sector. It seeks to ensure farming remains attractive, resilient, and future-proof while addressing global challenges such as climate change and economic pressures. This vision builds on the Strategic Dialogue on the Future of EU Agriculture and engages stakeholders across the entire food chain to shape policies that benefit both farmers and consumers.

 

Current status

On 19 February 2025, the European Commission presented its roadmap for a thriving EU farming and agri-food sector. This initiative responds to the pressing challenges faced by farmers, including global competition, climate change, and regulatory complexity. The roadmap prioritises simplification, innovation, and digitalisation to support farmers in the transition to more sustainable and profitable business models.

 

Implementation timeline

  • 19 February: Vision for Agriculture and Food published.
  • Q2 2025: EU Simplification Package for farmers and food businesses proposed.
  • Q3 2025: Launch of the EU Digital Strategy for Agriculture.
  • By 2026: Implementation of streamlined policies, funding mechanisms, and digital solutions.

 

Essential insights for businesses

  • Reduced administrative burden: Introduction of an EU Simplification Package to cut red tape for farmers and food businesses. Greater flexibility in agricultural policies, allowing Member States more control over implementation.
  • Sustainability and finance reforms: Enhanced support for carbon and nature credits, offering new revenue streams for farmers. Development of a voluntary On-Farm Sustainability Compass to help farmers benchmark and improve performance.
  • New Generational Renewal Strategy: Targeted support to attract young farmers and new entrants into the profession. Reform of the Common Agricultural Policy (CAP) to prioritise active food producers.
  • Trade and global competition measures: Stronger alignment of imported food standards with EU environmental and animal welfare rules. Tighter regulations on hazardous pesticides to prevent economic and environmental leakages. Increased agri-food diplomacy and trade defence measures to protect EU farmers from unfair competition.
  • Resilience and risk management: Development of an EU Unity Safety Net to shield the agri-food sector from economic coercion and trade shocks. A Water Resilience Strategy to ensure efficient water use and safeguard food production.
  • Digitalisation and innovation: Launch of an EU Digital Strategy for Agriculture to enhance precision farming and market access. Expansion of biopesticides and accelerated approval processes for alternative plant protection products.
  • Fair living and working conditions: Updated EU Rural Action Plan to support vibrant rural communities. Establishment of a Women in Farming Platform to encourage gender diversity in agriculture. Annual Food Dialogue to engage with farmers, consumers, and businesses on food affordability and sustainability.

 

The Action Plan for Affordable Energy: lower bills, cleaner energy

The Action Plan for Affordable Energy is an ambitious initiative by the European Commission aimed at reducing energy costs, enhancing energy security, and accelerating the clean energy transition. This initiative seeks to tackle high energy prices, support industrial competitiveness, and ensure fair and affordable access to energy for all Europeans while strengthening the EU’s Energy Union.

 

Current status

On 26 February, the European Commission launched the Action Plan for Affordable Energy, outlining key measures to reduce energy costs for households and businesses, streamline regulatory frameworks, and accelerate clean energy investments. The plan builds on previous energy security efforts and aims to close the energy price gap between the EU and global competitors.

 

Implementation timeline

  • 26 February: Action Plan published.
  • Q2 2025: Initial legislative proposals for energy market reforms.
  • Q3 2025: Launch of the EU Energy Digitalisation Strategy.
  • 2026: Full implementation of the Energy Union Framework and new investment mechanisms.

 

Essential insights for businesses

  • Reduced administrative burden: Introduction of a simplified energy regulatory framework, reducing bureaucratic hurdles for clean energy projects, infrastructure investments, and industrial energy contracts.
  • Energy pricing reforms: Lowering network charges, taxation, and supply costs to make electricity more affordable for businesses. Encouraging long-term power purchase agreements (PPAs) to stabilise energy costs.
  • Expansion of energy efficiency incentives: Launch of an EU-wide energy efficiency financing coalition, providing financial support for businesses to adopt cost-saving energy solutions.
  • Strengthening industrial competitiveness: Establishing tax incentives for electrification and decarbonisation of industries. Aligning EU energy standards with global competitors to prevent competitive disadvantages.
  • Infrastructure and grid modernisation: Accelerating investment in electricity grids, interconnectors, and smart networks to improve energy security and cut transmission costs. A European Grid Package will streamline cross-border energy flows.
  • Boosting renewable energy and storage: Simplified permitting for clean energy projects to reduce approval times for wind, solar, and hydrogen infrastructure. Expansion of energy storage incentives to balance the grid.
  • Lowering reliance on fossil fuel imports: Expanding EU joint energy purchasing mechanisms to secure lower-cost gas and LNG supplies. Increasing investments in biogas, hydrogen, and synthetic fuels.
  • Digitalisation and smart energy management: Launch of an EU Digital Energy Strategy to improve grid optimisation, demand response, and AI-driven efficiency measures. Expansion of smart meters and demand flexibility incentives.

 

Waste Framework Directive: the EU’s new plan for a circular economy

The Waste Framework Directive (WFD) provisional agreement marks a landmark step in the EU’s efforts to reduce waste, enhance circularity, and promote sustainable resource management. The agreement introduces binding targets for food waste reduction and strengthens waste prevention measures across multiple sectors, including textiles and packaging.

 

Current status

On 19 February, the European Council and European Parliament reached a historic agreement on the revision of the EU Waste Framework Directive (WFD), introducing legally binding food waste reduction targets for 2030. This agreement aligns with the EU’s broader circular economy objectives and aims to cut waste across processing, retail, and households.

 

Essential insights for businesses

  • Food waste reduction targets: Introduction of legally binding food waste reduction goals for 2030, including a 10% reduction in food waste from processing and manufacturing and a 30% reduction in food waste from retail, food services, and households.
  • Strengthening food donation systems: Mandates that Member States facilitate food donations by requiring economic operators to establish agreements with food banks and redistribution organisations, ensuring that surplus food is prioritised for donation rather than disposal.
  • Support for reusable packaging and circular food supply chains: Encourages adoption of reusable transport packaging to reduce single-use packaging waste, aligning with the EU’s waste hierarchy and promoting circular economy principles.
  • Assessment for post-2030 targets: Introduces a feasibility study for 2035, evaluating potential future binding targets, assessing causes of food waste, and examining how changes in production levels impact waste reduction efforts.
  • Provisions for SMEs: Ensures proportionate implementation of new requirements, limiting administrative burdens for small and medium-sized enterprises (SMEs) while maintaining commitments to waste reduction.

 

EU Biotech and Biomanufacturing Initiative: the EU’s plan to lead in biotechnology

The EU Biotech and Biomanufacturing Initiative is a key strategic effort by the European Commission to position Europe as a global leader in biotechnology and biomanufacturing. The initiative aims to boost innovation, enhance competitiveness, and modernise key sectors such as agriculture, forestry, energy, food, and healthcare. It was first identified as a priority for 2024 in the State of the Union 2023 and serves as a foundation for the upcoming European Biotech Act (expected in 2026).

 

Current status

The initiative was officially adopted on 20 March 2024, following its initial proposal in the 2024 Commission Work Programme. The European Commission has identified biotechnology as a critical technology for economic security and prioritised it under the Strategic Technologies for Europe Platform (STEP). The initiative highlights regulatory, financial, and value chain gaps that need to be addressed to unlock biotech’s full potential.

 

Implementation timeline

  • 20 March 2024: Initiative adopted by the European Commission.
  • 27 June 2024: Further measures proposed to boost biotech and biomanufacturing in the EU.
  • 30 January 2025: Launch of the Biotech and Biomanufacturing Hub to support innovative companies.
  • 2026: Expected adoption of the European Biotech Act, one of the main deliverables of the initiative.

 

Essential insights for businesses

  • Boosting biotech innovation: Strengthens EU research, innovation, and technology transfer to accelerate biotech solutions from lab to market.
  • Reducing regulatory complexity: Simplifies biotech-related regulations to support faster approvals and streamline investment in biomanufacturing.
  • Enhancing access to finance: Expands EU funding mechanisms and promotes public-private partnerships to improve financing for biotech start-ups and SMEs.
  • Strengthening skills and workforce development: Supports training programmes to address talent shortages in biotechnology and biomanufacturing.
  • Supporting industrial biotech applications: Focuses on modernising agriculture, forestry, energy, food, and healthcare through biotech-driven solutions.
  • Improving intellectual property frameworks: Enhances IP protection for biotech innovations to support investment and commercialisation.
  • Public acceptance and economic security: Addresses societal concerns about biotech adoption and strengthens economic security in strategic biotech sectors.
  • Creation of a Biotech and Biomanufacturing Hub: Establishes an EU-wide hub to help innovative companies navigate funding, regulation, and market access.

 

Securing Europe’s future: the race for critical raw materials

The strategic projects under the Critical Raw Materials Act (CRMA) are a key initiative by the European Commission aimed at securing the EU’s supply of essential raw materials, reducing external dependencies, and boosting Europe’s industrial resilience. These projects focus on mining, processing, and recycling critical raw materials necessary for the clean energy transition, advanced manufacturing, and digital technologies. The initiative aligns with the EU’s strategic autonomy goals and supports the development of a circular raw materials economy.

 

Current status

In March 2025, the European Commission is set to publish the first list of Strategic Projects under the CRMA. These projects will help diversify supply sources, reduce EU reliance on third countries, and enhance domestic raw materials production through public-private partnerships, streamlined permitting, and financial support mechanisms.

 

Implementation timeline

March 2025: Publication of the first list of Strategic Projects.

Q4 2026: Establishment of the EU Critical Raw Materials Centre to coordinate supply chains and strategic stockpiles.

By 2030: Target to ensure at least 10% of the EU’s annual raw material consumption is extracted, 40% is processed, and 25% is recycled within the EU.

 

Essential insights for businesses

  • Faster project approvals: Simplifies and expedites permitting processes for mining, processing, and recycling projects designated as strategic under the CRMA.
  • Financial support mechanisms: Increases access to EU funding, public-private investment schemes, and state aid exemptions to accelerate the deployment of critical raw material projects.
  • Creation of an EU Critical Raw Materials Centre: Establishes a centralised hub to coordinate joint procurement, stockpiling, and supply chain resilience efforts.
  • Demand aggregation and matchmaking: Introduces a market-driven mechanism to connect European industries with critical raw material suppliers and reduce reliance on non-EU sources.
  • Promotion of circularity and recycling: Strengthens mandatory recycling targets, waste export restrictions, and urban mining initiatives to recover materials from end-of-life products.
  • Raw material security for clean tech and industrial sectors: Ensures stable supplies for batteries, wind turbines, semiconductors, electric vehicles, and other key industries.
  • Stronger trade and strategic partnerships: Diversifies raw material imports through agreements with resource-rich countries, reducing vulnerabilities in global supply chains.

 

Phasing out “forever chemicals”: the EU’s plan to restrict PFAS

The European Union is advancing regulatory measures to restrict and phase out Per- and Polyfluoroalkyl Substances (PFAS), commonly referred to as ‘forever chemicals’. These substances are widely used in industrial, commercial, and consumer products due to their heat resistance and non-stick properties but pose significant environmental and health risks. The EU’s strategy involves sector-specific restrictions, a proposed ban on consumer products, and future exemptions for essential industrial uses.

 

Current status

The Committees for Risk Assessment (RAC) and Socio-Economic Analysis (SEAC) have provisionally concluded that restrictions on PFAS should apply to construction products, textiles, upholstery, leather, apparel, carpets, and food contact materials and packaging. Further evaluations on fluorinated gases, transport, and energy applications are planned for March 2025, followed by reviews of lubricants, medical devices, electronics, and semiconductors.

Additionally, the European Commission has announced its intention to propose a ban on PFAS in consumer products while examining exemptions for essential industrial uses. The proposal follows Denmark, Germany, the Netherlands, Norway, and Sweden’s joint call nearly two years ago for a broad PFAS ban.

 

Implementation timeline

  • January 2023: The universal PFAS restriction proposal was submitted to ECHA by five EU Member States.
  • 7 February 2023: The PFAS restriction proposal was published by ECHA for public consultation.
  • 26 September 2023: ECHA received more than 5,600 comments on the PFAS restriction proposal.
  • 22 June 2023: ECHA’s committees concluded that a EU-wide ban on PFAS in firefighting foams was warranted.
  • 19 September 2024: The European Commission is expected to adopt new restrictions on specific PFAS groups.
  • March 2025: The RAC and SEAC committees will meet to discuss PFAS restriction proposals relating to the transport sector, following its sectoral and product group approach.
  • Q2 2025: The European Commission will make a decision on PFAS restrictions in firefighting foams.
  • April 2026: Restrictions on PFHxA and related substances will enter into force in the EU/EEA.

 

Essential insights for businesses

  • PFAS restriction in consumer products: The European Commission is preparing to ban PFAS in consumer goods, including cosmetics, personal care products, textiles, and food packaging, requiring companies to transition to safer alternatives before 2026.
  • Industrial exemptions under review: Sectors such as semiconductors, medical devices, and industrial plastics may receive temporary exemptions due to a lack of viable alternatives, but strict disposal regulations will apply.
  • Sectoral impact of PFAS bans: While consumer products will face outright bans, industries including automotive, aerospace, food packaging, electronics, and firefighting must prepare for potential future restrictions and compliance obligations.
  • Legal exposure and litigation risks: Research linking PFAS exposure to liver damage, birth defects, and cancer has triggered multi-billion-dollar lawsuits in the United States, with similar litigation risks expected in Europe.
  • Financial and supply chain risks: Companies handling PFAS in consumer products will face increased compliance costs, supply chain disruptions, and liability risks, as restrictions intensify.
  • Development of safer alternatives: The EU is encouraging investment in fluorine-free replacements through public funding, R&D incentives, and sustainability-driven procurement policies.

 

Blog

Blog

EU Omnibus Package: what does it mean for businesses?

With the EU Omnibus Package now unveiled, businesses must navigate a shifting regulatory landscape. Find out what the reforms mean for your company, how they could impact sustainability reporting, and what steps you can take to stay ahead of the changes.

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EU Omnibus Package: what does it mean for businesses?
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Events

Find a detailed overview of Brussels’ main sustainability related events that you absolutely should join this month.

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