Today, the European Commission published its long-awaited EU Clean Industrial Deal. The Deal plan promises “a joint roadmap for competitiveness and decarbonisation” aiming to boost action on the following 6 areas: affordable energy, lead markets, financing, circularity and access to material, global markets and international partnerships and skills.

For cities and regions—home to major European industries and millions of SMEs—the Deal represents a crucial step in the right direction. ICLEI Europe welcomes that the Clean Industrial Deal communication recognises that it will be only “as good as its effective implementation” and therefore, it aims to reinforce coordination and dialogue with local authorities and stakeholders. The strategy also acknowledges the potential of public procurement in fostering markets for clean technologies and circular businesses. The “Affordable Energy Action Plan” published today, which is a key element of the Clean Industrial Deal, highlights the pivotal role of local governments in permitting processes and energy communities as accelerators of the energy transition.

However, the Clean Industrial Deal falls short of recognising the role of cities and regions as hubs of economic activity and innovation in implementing EU priorities, from climate action and energy transition to AI-driven public services. Local and regional governments create lead markets, and urban – industrial symbiosis to accelerate circularity, they create better, greener, local jobs, and improve the local acceptance of renewable energy projects. Key concerns going forward include:

The Deal does not adequately acknowledge the contribution of cities in creating lead markets and urban-industrial symbiosis, neither as accelerators of the circular economy acceleration fostering greener local jobs.
Funding access uncertainty remains. Cities and regions are not guaranteed access to the future “competitiveness fund,” a critical element to enable collaborative innovation between local governments, academia, industry, and SMEs.
No proposal to amend the key EU Climate Law. While the Deal upholds the EU’s climate ambitions, including a 90% net greenhouse gas reduction target for 2040, it does not propose legislative amendments to enshrine this intermediate goal into EU law.
Maider Etxebarria Garcia, ICLEI Europe RexCom Member and Mayor of Vitoria-Gasteiz, Basque Country, emphasized the need for greater recognition of local governments:

"We welcome the EU Clean Industrial Deal’s goal of supporting cleaner, more competitive industries while strengthening climate action—an essential objective for resilient communities. However, this proposal overlooks the crucial role cities and regions play in enabling clean industrial transitions on the ground. Cities shape lead markets, enable AI-driven infrastructure, foster business collaboration, and act as testbeds for innovation. The Deal must acknowledge cities as key partners in delivering the conditions for a sustainable industrial future."

Minna Arve, Mayor of Turku and First Vice-President of ICLEI, echoes these concerns:

"Strong industries and businesses thrive in local and regional ecosystems that drive innovation, develop talent, and ensure resilient infrastructure. The Clean Industrial Deal and the next EU budget must recognize that competitiveness is built locally—where governments provide the essential conditions for businesses to succeed. This is not just about funding; it is about enabling long-term, sustainable growth in our cities and regions."

As the EU moves forward with implementation, ICLEI Europe urges policymakers to strengthen the role of local and regional governments in shaping and delivering Europe’s industrial transformation. 

• Read a detailed analysis of all the six focus areas of the Clean Industrial Deal here.
• To learn more about ICLEI Europe’s position on the role of cities and regions in the EU competitiveness agenda, click here. 
• Explore our position on the EU’s 2040 Climate Target here.

Endorse our Mayor’s voices on the Clean Industrial Deal here and help us “Unlocking Cities and Regions’ Potential in the EU’s Competitiveness Agenda.“