EPICO KlimaInnovation has published a new Policy Brief, the first of the series “Electrifying Energy Intensive Industries”, using the results of a workshop focused on accelerating the decarbonisation of Energy-Intensive Industries (EIIs) hosted on 8 May 2025.
Europe’s energy-intensive industries play a vital role in the EU’s economy but also account for a significant share of greenhouse gas emissions. To meet its climate targets and secure industrial competitiveness, the EU must help these sectors transition towards electrified, low-carbon production. On 8 May 2025, EPICO KlimaInnovation hosted a closed-door workshop with representatives from industry, the European Commission, NGOs, and think tanks to explore how EU-level funding can accelerate this transition. The discussion focused on direct and indirect electrification strategies and how financial tools can support clean technology deployment, fuel switching, and energy efficiency in those industries.
The participants agreed that the EU has a strong role to play in providing financial support, but today’s EU-level funding landscape remains fragmented, complex, and insufficient in scale. On 16 July, the European Commission will present its proposals for the post-2027 Multiannual Financial Framework (MFF), including the legislative basis for the European Competitiveness Fund, the new research programme (FP10), and the Connecting Europe Facility, alongside the Performance Regulation and national and regional partnership plans. The European Competitiveness Fund (ECF) is expected to bring together 10 current programmes under one umbrella, and it is crucial that climate mainstream and cohesion are strengthened, as well as having a budget which is up to the task. Participants underlined the need for a clear, reliable, and simplified financial framework that supports decarbonisation in a cost-effective and socially balanced way.
WHAT OUR BRIEF PROPOSES
- Anchor funding to CO₂ intensity and resilience modulation: Public support should be tied to clear CO₂ intensity benchmarks rather than solely cost-based metrics, ensuring aid supports real decarbonisation. A minimum climate performance threshold should apply to all projects, while an uplift in maximum aid intensity (e.g. +10%) could be tested for projects in strategic sectors meeting regional or social resilience criteria. A resilience marker, similar to the do no significant harm check, could help fast-track these projects through technical assistance tools.
- Mainstream competitive auctioning and blended finance models: The EU should expand competitive calls and blended finance “as a service” via instruments like the European Competitiveness Fund. These models can derisk climate-aligned industrial projects and improve capital efficiency. CINEA and the Innovation Fund team should work to reduce the administrative and technical burden on Member States by offering centrally managed, ready-made support mechanisms.
- Mobilise existing EU funds toward industrial decarbonisation: Cohesion, Modernisation and Structural Funds should better support low-carbon industrial supply chains. Future disbursement should be conditional on the effective implementation of EU climate and energy rules, backed by robust governance and monitoring systems. Member States should also be incentivised to channel part of their EU-managed funds into EU-level financial instruments to boost leverage and crowd in private capital.
- Mobilise private investment through InvestEU: InvestEU guarantees, along with technical support from the Advisory Hub and Project Development Assistance, should be used to unlock private capital for hard-to-abate sectors. The Commission, EIB and DG FISMA should work to reduce investor risk perceptions - through standardised due diligence, model structures and internal ratings - and align InvestEU more closely with tools like the Innovation Fund via shared pipelines or investment platforms.
Read the Policy Brief here.
WHAT’S NEXT
The conversation on Electrifying Energy-Intensive Industries will continue with a focus on unlocking the hydrogen opportunity for European industry. With rising demand in sectors like steel, ammonia, and shipping, and billions mobilised through the European Hydrogen Bank, our next brief will explore how smarter prioritisation, targeted derisking, and better system integration can accelerate hydrogen uptake.