Industry associations across Europe’s clean energy and mobility sectors have responded to the European Commission’s proposed Industrial Accelerator Act (IAA), broadly welcoming its objective to strengthen domestic clean technology manufacturing while warning that several provisions may need to be tightened during the legislative process.

The European Commission presented the draft regulation in Brussels on 4 March, outlining measures aimed at supporting industrial decarbonisation, competitiveness and the production of key technologies such as solar, wind and batteries in Europe.

The proposal introduces “Made-in-EU” criteria, allowing member states to prioritise domestically manufactured clean technologies in certain public auctions, procurement processes and support schemes. The legislation will now be negotiated by the European Parliament and the Council of the EU before its final adoption.

Solar sector welcomes signal but warns about battery provisions

SolarPower Europe described the proposal as a turning point for industrial policy in Europe, noting that the draft would allow EU countries, for the first time, to favour European-made solar and battery storage systems in parts of their support schemes.

Dries Acke, Deputy CEO of SolarPower Europe, said the proposal strikes a balance by focusing on strategic components such as solar cells and inverters, while avoiding restrictions that could slow solar deployment.

However, the association raised concerns about the treatment of battery energy storage systems, arguing that stricter requirements introduced too early could slow down the rapid deployment needed to support Europe’s energy transition.

According to Acke, accelerating battery storage is essential to maximise the use of domestically produced renewable electricity and reduce exposure to volatile fossil fuel import prices.

Manufacturers criticise limited scope of solar requirements

The European Solar Manufacturing Council (ESMC) expressed disappointment with the local content provisions for solar technology included in the draft legislation.

The organisation warned that limiting the “Made-in-Europe” requirement to just two components—cells and inverters—will not be sufficient to rebuild the full photovoltaic supply chain in Europe.

“This target is slipping out of sight. I am very disappointed with this watering-down game. We need ‘Made in Europe’ to ensure the continent’s long-term energy security. The current explosion in energy prices, caused by the war in Iran, demonstrates the importance of being independent of other regions,” says Christoph Podewils, Secretary General of ESMC. “If the European solar industry has to wait another three years after the legislation is adopted, many companies will have disappeared in the meantime due to ongoing unfair competition from China.”

ESMC also criticised the timeline for implementation, noting that the provision may only enter into force around 2030, which it says could weaken efforts to revive domestic solar manufacturing.

The association called on policymakers to expand local manufacturing requirements to additional solar components and address supply chain risks linked to foreign suppliers.

Battery rules welcomed but loopholes highlighted

Transport & Environment (T&E) welcomed provisions introducing local content rules for batteries used in electric vehicles eligible for company car tax incentives.

Under the proposal, batteries will be considered “Made in the EU” if at least three components, including cells, are produced in Europe. By 2030, this requirement would increase to five components, including cathode active materials and battery management systems.

According to T&E, these rules could mean that nearly two-thirds of electric vehicles sold in the EU from 2027 will use batteries produced in Europe.

Julia Poliscanova, senior director for vehicles and emobility supply chains at T&E, said that "this is a positive step for Europe’s battery industry as company cars will soon have to run on locally made batteries. We finally have a tool to avoid foreign countries turning off clean tech supplies to Europe. But parliamentarians and capitals must tighten the many loopholes to truly give investors certainty that they can bank on Europe’s battery industry."

However, the organisation warned that several loopholes could weaken the policy, including allowing EVs produced in countries with EU free trade agreements to access purchase subsidies and excluding some battery materials from local content requirements.

Wind sector stresses need for simple implementation

The wind industry also welcomed the proposal’s recognition of wind energy as a strategic clean technology, while stressing that implementation will be key to its success.

“The EU has rightly identified wind energy as a strategic sector: industrial leadership in wind is in Europe’s strategic interest. We welcome this important political signal. Now a simple and harmonised implementation of the new rules is crucial”, says WindEurope CEO Tinne van der Straeten. 

WindEurope highlighted that Europe remains exposed to geopolitical shocks and volatile fossil fuel imports, reinforcing the need to accelerate electrification and expand domestic clean energy manufacturing.

The association also noted that the draft includes new criteria for wind auctions, such as cybersecurity pre-qualification requirements, aimed at strengthening the resilience of the energy system.

At the same time, WindEurope warned that the legislation will require simple and harmonised implementation across EU member states to avoid a fragmented regulatory landscape that could increase administrative burdens and costs for companies.

With the proposal now entering the EU legislative process, industry groups are expected to push for adjustments to local content requirements, supply chain provisions and implementation mechanisms before the regulation becomes law.