Europe
April 9, 2025

Von der Leyen bets €100 billion on industrial decarbonization in Europe

At the Clean Tech 2025 Conference, European Commission President Ursula Von der Leyen announced the mobilization of €100 billion to create an Industrial Decarbonization Bank. The goal is to boost the growth of innovative companies and sustain Europe's leadership in clean technologies, accompanied by regulatory reforms and strategic agreements.
By Strategic Energy

By Strategic Energy

April 9, 2025
Ursula Von der Leyen

Europe seeks to consolidate its leadership in clean technologies with an unprecedented financial commitment. During her speech at the Clean Tech 2025 Conference, European Commission President Ursula von der Leyen announced the mobilization of €100 billion for the creation of an Industrial Decarbonization Bank.

“We are mobilizing this €100 billion to increase the firepower of the Innovation Fund through the creation of an Industrial Decarbonization Bank,” von der Leyen stated. She explained that the goal is for innovative European companies to scale up and become global leaders in the sector.

The measure responds to the growing difficulties facing the European cleantech ecosystem, which, despite its dynamism, is grappling with high energy costs, financing difficulties, unequal global competition, and bottlenecks in access to critical raw materials.

“Each call for proposals from the Innovation Fund is heavily oversubscribed, and we have to reject many good projects,” warns the President. In this context, the new bank aims to fill this gap and accelerate the industrial transition.

Regulatory Simplification and Focus on SMEs

In addition to the financial boost, the European Commission is making progress on profound regulatory simplification. Von der Leyen emphasizes that the omnibus proposals have considerably reduced the bureaucratic burden, especially for small and medium-sized enterprises.

“We exempt 90% of importers from CBAM obligations because they only represent 1% of emissions,” she explains. The Carbon Border Adjustment Mechanism (CBAM) seeks to curb unfair competition, but its application will be more limited so as not to stifle the business community.

Permits for innovative projects have also been streamlined. “We have simplified the procedures so that projects can get off the ground quickly,” von der Leyen maintains.

Low-Carbon Hydrogen and Clear Rules

The Commission is also making progress in establishing a clear regulatory framework for low-carbon hydrogen, a key technology for the decarbonization of energy-intensive industries such as steel and chemicals.

“We will soon establish clear rules for low-carbon hydrogen. This will provide clarity for entrepreneurs and investors,” says the Commission President, who emphasizes that climate targets will be maintained, but with more pragmatic and flexible implementation.

Strategic Raw Materials and Global Agreements

Another key focus of von der Leyen’s message was access to critical raw materials, considered essential for the development of clean technologies. The Commission recently announced 47 new strategic projects within the EU and strengthened its international cooperation strategy.

“We concluded trade agreements with Mercosur, Mexico, and Switzerland. In addition, we launched the first Clean Trade and Investment Partnership with South Africa,” the president stated. She also highlighted the advanced negotiations with India, Indonesia, and Thailand, which are essential for ensuring the supply of key inputs.

“This will help European companies secure the critical raw materials they need,” von der Leyen asserted. In her view, it is also a signal to the world that Europe is open for business.

An Economic and Environmental Opportunity

In her final message, the President underscores the economic potential of cleantech and its role in climate resilience.

“Clean technologies mean entrepreneurship, high-quality jobs, and a better, more sustainable future for all Europeans,” von der Leyen concludes, reaffirming the bloc’s commitment to industrial prosperity without compromising its environmental ambition.

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