Clean Industrial Deal released - impact on permitting, public procurement and accelerating clean energy initiatives

1. Introduction

On 26 February 2025, the European Commission (EC) announced the release of the Clean Industrial Deal1, a comprehensive roadmap aimed at enhancing competitiveness and decarbonisation efforts within the European Union (EU). This transformational business plan for the European Union seeks to strike a balance between the EU's competitive position globally and its ambitious environmental goals, solidifying its leadership in achieving CO2 neutrality.

The Clean Industrial Deal comes at a crucial time marked by rising geopolitical tensions, slow economic growth and intense technological competition. In light of these challenges, the EU recognises the urgency of defining a strategic approach that integrates decarbonisation with industrial policy.  

a. Access to affordable energy and streamlined permitting processes

High energy prices in Europe threaten the competitiveness of energy-intensive industries, compounded by reliance on imported fossil fuels. To address this, the Clean Industrial Deal outlines an action plan designed to reduce energy costs by accelerating electrification and transitioning to clean, local energy sources while ensuring efficient gas markets.

To facilitate the swift rollout of clean energy initiatives, the Deal commits to accelerating the permitting processes for the energy projects necessary for the decarbonisation of the industrial sector. Only seven Member States have fully implemented the streamlined permitting rules from the Renewable Energy Directive2, which has positively impacted deployment in those countries. The Commission will assist all Member States in transposing and implementing existing energy permitting legislation by sharing best practices and launching an implementation dialogue.

Lengthy permit-granting procedures remain a significant concern for industries seeking electrification. The upcoming Industrial Decarbonisation Accelerator Act will propose measures to address these bottlenecks while maintaining environmental safeguards. These measures will draw from experiences with existing regulations. For certain pre-defined acceleration areas, and in cases of overriding public interest, this can be eased by measures such as tacit approvals for certain administrative decisions in the permitting process (where this principle exists in the national legal system) and one-stop shops for developers.

Digitalisation is vital in speeding up the permitting process and ensuring predictability. The Commission will encourage the use of data spaces, EU space-based data and AI to make various data sets more accessible for national authorities involved in decision-making.

In Belgium, the partial implementation of the Renewable Energy Directive (RED III) is already advancing, particularly in the Walloon Region. The Walloon Decree of 29 April 2024 brings amendments to the current rules and procedures on environmental permitting. It emphasises the superior public interest of constructing and operating renewable energy facilities, creating a supportive environment for such projects while addressing environmental and biodiversity concerns. During permit evaluations, authorities will balance the significant public benefits of renewable energy initiatives, such as sustainability and energy security, against potential impacts on natural habitats. By recognising the superior public interest associated with renewable energy projects, these initiatives will carry greater weight in the decision-making process. This recognition may facilitate approvals or prioritise these projects over others.

Additionally, the joint decree and ordinance of 25 January 2024, from the French Community Commission, the Brussels-Capital Region and the Common Community Commission, is set to enhance the digital transition of public administration in Brussels. This mandate requires all administrative procedures, including permitting, to be available online, thereby improving transparency and efficiency and facilitating easier engagement for citizens and businesses.

However, until June 2024, the Council Regulation (EU) 2022/2577 is in effect to accelerate the deployment of renewable energy projects across the EU. In response to the current energy crisis, it promotes expedited permit-granting processes with a rebuttable presumption that these projects serve an overriding public interest.

This regulation shortens timelines for:

• Installation of new solar panels, solar water heaters and energy storage facilities;

• Repowering of existing renewable energy projects;

• Installation of heat pumps; and

• Necessary connections to the electricity grid. 

Additionally, it permits Member States to exempt certain renewable projects from specific environmental assessments if situated in designated strategic renewable zones. These measures are designed to enhance energy security and assist households grappling with rising energy costs.

3. Takeaways for businesses and industries

The developments outlined below highlight certain key takeaways for industries regarding the legal aspects and their impact on business activities as informed by the Clean Industrial Deal:

• Streamlined permitting processes: Anticipated changes to permitting procedures for energy projects will affect how quickly companies can implement new initiatives. Industries can benefit from the planned measures to expedite approvals, reducing time to market for clean technologies.

• Public procurement changes: The introduction of non-price criteria in public procurement policies will affect how industries bid for contracts. Companies may need to align their practices with sustainability and resilience criteria to remain competitive in public tenders.

• Market access and competition: The focus on establishing a level playing field and addressing unfair competition will allow industries to benefit from a more equitable market environment, but entities involved in imported goods must be prepared for potential changes in regulations and tariffs.

• Long-term planning: The framework provided by the Clean Industrial Deal will enable industries to engage in long-term planning, taking into account public policies and funding opportunities, hence aligning their business strategies with EU climate goals.