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ARTICLE · 04 MARCH 2026

The Industrial Accelerator Act: Acceleration Without Harmonization?

A&O Shearman
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On March 4, 2026, the European Commission published a proposal for a Regulation establishing a framework of measures for the acceleration of industrial capacity and decarbonization in strategic sectors...

European UnionEnvironment

Introduction

On March 4, 2026, the European Commission published a proposal for a Regulation establishing a framework of measures for the acceleration of industrial capacity and decarbonization in strategic sectors: the Industrial Accelerator Act (IAA).1

The IAA responds to a structural decline in the Union's manufacturing base. According to the Commission, the manufacturing sector's share of EU GDP has fallen from 17.4% in 2000 to 14.3% in 2024, while the sector continues to account for approximately 26.2% of the Union's greenhouse gas emissions.2

The IAA proposal forms part of a broader policy sequence that includes the Clean Industrial Deal3 and the Competitiveness Compass,4 and delivers on the commitment made by President von der Leyen in her 2025 State of the Union Address to introduce legislation boosting demand for "Made in EU" products in strategic sectors.

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