The Clean Industrial Deal

When the European Commission unveiled the Clean Industrial Deal (CID) in February 2025, it marked an important moment in Europe’s efforts to align its climate ambitions with industrial competitiveness. For the cement sector – a cornerstone of Europe and its economy – the CID provides an essential framework that recognises both the urgency and complexity of deep industrial decarbonisation while also addressing the competitiveness conditions of the day-to-day operations and investments in conventional technologies.

CEMBUREAU view the Clean Industrial Deal as a starting point. It presents the right direction, and recognises the needs of energy-intensive sectors like the cement industry. The challenge now lies in delivering the policies, funding mechanisms, and infrastructure that will enable the cement sector to remain competitive, scale up its investments, and accelerate the transition to climate neutrality.

A decarbonisation track already underway

The European cement sector has long recognised the scale of transformation needed to meet climate neutrality goals. In May 2024, CEMBUREAU updated its 2050 Net Zero Roadmap, reaffirming the cement industry’s ambition to reach net zero emissions by 2050 – with the potential to go even further, including the possibility of achieving negative emissions across the cement and concrete value chain.

Today, more than 100 projects (as outlined in CEMBUREAU’s interactive map of innovation projects) are in motion across Europe, demonstrating the sector’s commitment to deploying a wide range of technologies: from carbon capture, utilisation, and storage (CCUS), to increased use of alternative fuels and alternative raw materials, clinker substitution, and circular construction materials. Each of these levers is part of a broader industrial transformation that will reshape how Europe builds, literally.

But unlocking the full potential of this transformation requires more than innovation. It needs a regulatory framework that supports investment, a funding landscape that reflects project risks and the business case, and infrastructure that is built at the same pace as the projects it is meant to serve.

Financing industrial transformation: positive signals, now delivery is key

One of the most anticipated elements of the CID was its approach to industrial financing. Here, the Commission made an important move: the introduction of the Industrial Decarbonisation Bank, with a planned capacity of €100 billion, marking a substantial step forward. This instrument – complemented by expanded InvestEU capacity and a €1 billion Innovation Fund pilot auction – creates an architecture capable of supporting large-scale industrial projects.

For the European cement industry, this is a welcome recognition of reality: deep decarbonisation comes with high upfront capital costs (CAPEX) and sustained operating expenses (OPEX). Financing models need to reflect this dual challenge.

While the mechanisms introduced in the CID are promising, they will only succeed if they are designed with sector-specific realities in mind. As previously noted, frontloading ETS revenues and tailoring funding approaches to sectoral abatement curves and cost structures are key. CEMBUREAU now has the framework – what matters next is how it is put into operation.

State aid as an enabler of decarbonisation

The CID’s draft State Aid Framework acknowledges the need to de-risk capital-intensive industrial projects and support breakthrough innovation. CEMBUREAU appreciates this enabling approach. Yet, to be effective, the framework must offer sufficient clarity and flexibility.

Aid cumulation rules must be workable in practice, allowing for meaningful combinations of EU and national support without jeopardising business cases. Investment pathways must also remain eligible when they involve gradual transitions. For example, this includes shifting incrementally away from fossil fuels in high-temperature processes like clinker production.

CEMBUREAU is also calling for the framework to accommodate project risks, including delays in permitting or supply chain constraints, which can impact implementation timelines. Clear rules on how benchmarks are applied – particularly for sectors like cement, where process emissions are unavoidable – will be key to ensuring that decarbonisation incentives are fair and technically grounded.

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Read the article online at: https://www.worldcement.com/special-reports/06062025/the-clean-industrial-deal/