The proposed Industrial Accelerator Act (IAA) is being positioned as a pivotal opportunity to strengthen Europe’s industrial base, with the non-ferrous metals sector highlighting its critical role in achieving the European Union’s climate, digital and security objectives.
Industry stakeholders argue that the IAA must prioritise restoring a viable business case for producing metals within Europe, which has been undermined in recent years by persistently high energy prices and rising operational costs. They stress that without targeted measures to address energy affordability, the credibility of the IAA as an industrial policy tool could be compromised.
Among the key proposals is the development of “lead markets” to support demand for low-carbon materials. However, industry representatives warn that such mechanisms must remain realistic, flexible and aligned with sector-specific conditions. They emphasise the need for accompanying incentives, including VAT reductions and public procurement criteria, to prevent European producers from being undercut by cheaper imports.
The introduction of local content requirements is also seen as a strategic priority to reduce reliance on critical raw materials from third countries and to support a “Made in EU” approach. At the same time, stakeholders caution that these measures must be carefully calibrated to avoid increasing production costs excessively or disrupting global supply chains. Flexibility is recommended, particularly in recognising partnerships with allied countries such as the UK, Canada, Australia and Japan.
Green public procurement is identified as another key lever, with calls for minimum EU-wide standards based on life-cycle sustainability criteria. Industry groups argue that procurement frameworks should prioritise material efficiency, recyclability and end-of-life recovery, while remaining achievable and aligned with existing regulatory frameworks.
Permitting reform is also highlighted as a major requirement. Current processes for obtaining environmental approvals can take years, delaying investment and project development. Stakeholders propose the introduction of EU-wide time limits for permitting decisions, alongside measures to streamline administrative procedures and improve regulatory predictability.
Access to finance remains a central concern, particularly given the high capital and operating costs associated with decarbonisation. The IAA is expected to support both CAPEX and OPEX through long-term, predictable funding mechanisms, including carbon contracts for difference and dedicated instruments to mitigate energy price volatility.
In addition, stakeholders advocate for a more coordinated approach to critical raw materials, including tailored stockpiling strategies to enhance short-term supply security. However, they emphasise that long-term resilience will depend on increasing domestic extraction, processing and recycling capacity within Europe.
Overall, industry representatives stress that the success of the IAA will depend on its ability to balance climate ambition with industrial competitiveness. Without addressing structural cost disadvantages and regulatory barriers, they warn that Europe risks further erosion of its metals production base in an increasingly competitive global market.
