22 April 2026 - Europe has a €100 billion pipeline of industrial decarbonisation projects ready to deploy – but many face stalling due to insufficient market demand and inconsistent signals to investors. This report explores how European lead markets, supported by the Clean Industrial Deal and the Industrial Accelerator Act, can unlock investment into industry transformation, accelerate clean solutions deployment, and strengthen EU competitiveness and strategic autonomy.
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About
Europe faces intensifying global competition in clean technologies, growing geopolitical disruption generating risks on supply-chains, and rising pressure on industrial competitiveness. While many clean and circular industrial solutions are technologically ready, progress is being held back by a lack of market certainty, insufficient risk‑sharing and unclear long‑term demand signals.
This report examines how EU lead markets can address these barriers by creating credible demand for low carbon and circular products, reducing investment risk and enabling clean technologies to scale. It assesses the role of the European industry policy framework, especially the Clean Industrial Deal (CID) and the Industrial Accelerator Act (IAA), in shaping a coherent European industrial framework that supports innovation, electrification, resilient supply chains and strategic autonomy.
Drawing on past European successes, including renewable electricity and energy‑efficient products, the report highlights how well‑designed policy frameworks can drive learning effects, lower costs and strengthen industrial resilience across key value chains.
Key policy recommendations
The report sets out five priorities for policymakers to ensure Europe’s industrial framework delivers competitive, scalable clean industry:
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Ensure policy coherence, predictability and alignment: Provide clear long‑term direction through credible targets, sector‑specific transition pathways and evolving standards that support investment certainty and energy security.
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Generate strong, reliable market demand across value chains and market types: Use lead market strategies, including public procurement and product standards, to create clear demand signals for low carbon and circular products across value chains.
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Enable competitive, scalable supply: Support innovation from early stage through to commercialisation, reduce financing and energy cost barriers, and strengthen risk‑sharing mechanisms to unlock investment.
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Build an enabling environment for clean and circular lead markets: Invest in skills, infrastructure and affordable clean electricity and hydrogen to ensure low carbon production remains competitive as demand grows.
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Foster collaboration across markets and partners: Enable coordination between industry, buyers, regulators and trusted trade partners to harmonise standards, aggregate demand and strengthen resilience to global disruption.
Citing this report
University of Cambridge Institute for Sustainability Leadership (CISL). (2026). The European Industry framework and lead markets: Driving innovation, competitiveness and strategic autonomy in the EU. Cambridge, UK: Cambridge Institute for Sustainability Leadership.
