Clean Industrial Deal / Competitiveness Compass

Dear Member,
With reference to the letter sent to our Chamber by TOBB, the letter forwarded to our Union by the Ministry of Trade (Directorate General for International Agreements and the European Union) notifies that the European Commission published the "Competitiveness Compass" on 29 January 2025. This document aims to increase the economic efficiency of the EU and to preserve its competitiveness. The Compass aims to make the EU the centre of future technologies and clean products while achieving climate neutrality. To this end, three main areas of action have been identified: (1) closing the innovation gap, (2) combining decarbonisation and competitiveness, and (3) increasing economic security by reducing excessive dependencies. A detailed information note on the Competitiveness Compass is presented in Annex-1.
Furthermore, the Compass emphasises that decarbonisation supports growth when it is well integrated with industry, the economy and trade. However, it is stated that EU industries are at risk of a decline in productivity due to high energy prices and global competition. For this reason, the Clean Industrial Deal was announced by the EU on 26 February 2025.
The Deal aims to support production by focusing on energy-intensive industries and the clean technology sector
. Its main areas are (1) low energy costs, (2) creating demand for clean products, (3) financing the clean transition, (4) circularity and access to raw materials, (5) access to global markets, and (6) skills and workforce. In this context, a detailed information note on the Clean Industrial Deal is presented in Annex-2, and the prominent actions are summarised below:

• Reducing energy
  bills for industry, businesses and households through the Affordable Energy Action Plan (6 February 2025),

• Introducing sustainability, resilience and "Made in Europe" criteria in public and private procurement through the Industrial Decarbonisation Accelerator Act [2025 Quarter IV]
  ,

• Reviewing the Public Procurement Framework in 2026 and including sustainability,
  resilience and European preference criteria in public procurement in strategic sectors,

• Adopting a regulation (delegated act) on low-carbon hydrogen in the first quarter of 2025 and clarifying the rules on low-carbon hydrogen production,

• Introducing a voluntary carbon intensity label for industrial products in 2025, starting with steel, followed by the addition of the cement sector,

• Presenting an Action Plan for the automotive sector in March and an Action Plan for steel and metals in the spring,

• Mobilising more than 100 billion euros in financing
  to support clean industry manufactured in the EU,

• Establishing a
  mechanism allowing European companies to aggregate their demand for critical raw materials, and carrying out joint purchases of raw materials through the EU Critical Raw Materials Centre,

• Adopting the Circular Economy Act in 2026, revising the existing rules on e-waste to make them simpler, fit for purpose and able to recover the critical raw materials they contain, harmonising "end-of-waste" criteria, simplifying, digitalising and expanding in a targeted manner extended producer responsibility (EPR), and providing incentives to increase the use of metal scrap,

• Establishing Trans-Regional Circularity Hubs, and introducing special regulations on the export of battery recycling waste (black mass), which is critical for battery recycling, as it creates supply shortages,

• Effectively using a range of trade defence mechanisms and other protective instruments in the face of global competition and geopolitical uncertainties,

• Presenting a comprehensive CBAM review report by the Commission in the second half of 2025 with a view to simplifying and enhancing the effectiveness of the Carbon Border Adjustment Mechanism,
  The relevant document and statements can be accessed on the website of the European Commission.
  (https://commission.europa.eu/topics/eu-competitiveness/clean-industrial-deal_en)

Annex: Clean Industrial Deal / Competitiveness Compass

Kind regards,
Elazığ Chamber of Commerce and Industry