18 March 2026
EU Industrial Accelerator Act welcomed as progress but criticised for limited ambition
he European Commission’s proposed Industrial Accelerator Act (IAA) aims to strengthen Europe’s clean-tech manufacturing base, including hydrogen technologies, by linking public support mechanisms more closely to resilient supply chains. Under the proposal, renewable hydrogen projects receiving subsidies through EU auctions would need to use electrolyser stacks of “Union origin.” However, this definition extends beyond equipment produced strictly within the EU: components manufactured in third countries that have a free-trade agreement with the EU are also considered to be of Union origin, meaning they can still qualify under the rule. The act also introduces measures to stimulate demand for low-carbon materials, including a requirement that 25% of all steel used in publicly funded projects must be low-carbon, a provision that could increase demand for steel produced using green or blue hydrogen, although the EU has not yet fully defined what qualifies as ‘low-carbon steel’. While industry groups such as Hydrogen Europe and the Hydrogen Council welcome the initiative as a step toward strengthening Europe’s industrial competitiveness, they argue that the proposal lacks the level of ambition needed to secure Europe’s leadership in hydrogen technologies and call for stronger incentives.