Entrance through the big door: EU urges green reindustrialization with a focus on SMEs and strategic tech

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Entrance through the big door

New Minister of Industry and Tourism Jordi Hereuthis chaired his first Council on Competitiveness, Internal Market and Industry this Thursday. The focus was on a European Union Together agreement aimed at accelerating clean technology production across Europe. The plan centers on strengthening net zero emission regulations, boosting the manufacture of green technologies such as solar panels, wind turbines, and other essential equipment, while simplifying authorizations, prioritizing strategic projects, and diversifying the supply of key technologies to the European Union.

The overarching aim is to close the loop on energy and industrial governance. European industry faces mounting pressure, particularly from subsidies in third countries like China. Although the agreement is not as ambitious in every aspect as some hoped, the Spanish presidency described it as a concrete step that reinforces one of the EU’s main priorities. At his first Brussels press conference, Hereu acknowledged the hard work of the Spanish delegation and signaled a push toward energy autonomy, with Parliament and the Commission preparing for future implementation and entry into force. (Source: European Union communications)

There is a clear intent to diversify the supply chain for strategic technologies through smarter public procurement. The emphasis goes beyond price alone; it includes criteria on social impact, environmental responsibility, and innovation. While the agreement seeks to reframe tender criteria away from price alone for renewable energy projects, ministers raised concerns about introducing an annual 20% cap on auction volume as a fixed rule. (Source: EU policy brief)

27 countries agree that nuclear fission and alternative fuels would benefit from support measures

Responding to requests from France, progress is being made to increase ambition over time. Hereu explained that France proposed adding an article to the final agreement to gradually raise standards that go beyond price in energy tenders. A phased approach will allow a period during which the rate climbs, although the current rate remains at 20 percent. (Source: Brussels press materials)

The debate on anti-China provisions stirred some controversy, given the European solar industry’s heavy reliance on Chinese photovoltaic modules. There is concern that an Asian veto could threaten jobs across the continent, where about 90% of roles are in planning and installation, with manufacturing representing a smaller share. (Source: Euractiv)

One and a half year timeline

The council also advocates simplifying grants and permits for production projects in these technologies. The aim is to reduce average permitting durations from two to seven years to a maximum of 12 months, effectively creating a one-and-a-half-year timeline. This streamlining is designed to shield against improper delegation of powers and to accelerate capacity growth, especially in battery technologies and large-scale factories crucial for achieving economies of scale. (Source: EU regulatory briefing)

On another front, ministers agreed to broaden the list of technologies considered strategic for a carbon-free transition. The new list includes solar and photovoltaic technologies, wind energy, batteries, heat pumps, geothermal energy, electrolyzers, fuel cells, biogas and biomethane, grid technologies, and carbon capture and storage. Nuclear power and sustainable alternative fuels were added to this Thursday’s package. (Source: EU strategic tech update)

The net zero emission technologies catalog was expanded to cover not only strategic offerings but also non-strategic components. The community body noted that biotechnological solutions for climate and energy, other nuclear technologies, and transformative industrial technologies for energy-intensive sectors would be included. An appendix lists products and components linked to the production of net zero emissions technologies, broadening the scope of research and industrial support. (Source: EU documentation)

More emphasis on SMEs

During his first visit to Brussels as the group’s lead representative, Hereu underscored the importance of small and medium-sized enterprises (SMEs). He championed the idea that SMEs should participate in and benefit from green policies within a framework of clean reindustrialization. The message stressed integrating SMEs into the value chain of the new industry, positioning them as central players in building value and ensuring resilience across supply chains. (Source: EU policy briefing)

Overall, the approach signals a push to integrate SMEs into the evolving energy and industrial landscape, aiming to empower smaller firms to contribute meaningfully to Europe’s green transition and to be recognized as pivotal actors in the sustainable economy. (Source: Brussels policy notes)

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