Brussels, March 4, 2026. On 4 March 2026, the European Commission presented the legislative proposal for the Industrial Accelerator Act (IAA). The aim is to increase demand for low-carbon technologies produced in the EU and to stimulate investment in industrial manufacturing.
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On March 4, 2026, the European Commission presented the legislative proposal for the Industrial Accelerator Act (IAA). The aim is to increase demand for low-carbon technologies produced in the EU and to incentivize investment in industrial manufacturing. Targeted “Made in EU” and low-emission criteria in public procurement and funding programs are planned, initially for strategic sectors such as steel, cement, aluminium, automobiles and net-zero technologies.
The background to this is global competitive pressure and growing dependence on third countries. The measures proposed in the IAA are intended to strengthen industrial value creation in Europe and increase the share of manufacturing in EU GDP from 14.3% to 20% by 2035. At the same time, the proposal reaffirms the EU’s openness to trade and investment. Public contracts are to be more closely linked to the principle of reciprocity; partner countries with free trade agreements will be treated equally.
For semiconductors and microelectronics, the main effects will be indirect: The preferential procurement of low-CO2 products manufactured in the EU should increase demand for European semiconductors in the sectors addressed. The IAA thus complements existing industrial policy instruments and contributes to strengthening resilient supply chains. Silicon Saxony will continue to analyze the proposal and represent the interests of its members to political decision-makers.
The European Commission’s draft will be discussed in the European Parliament and the EU Council of Ministers in the coming months. The text will then be finalized in the trilogue procedure of the EU institutions.
This initiative is a proposal for a regulation. It was announced in the Deal for a Clean Industry and in the Joint Communication on strengthening the EU’s economic security. It will also implement the recommendations from the Draghi report by creating demand for clean and EU-made products and key technologies through public procurement and support programs in the EU.
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