Cleantech for Europe‘s Policy Update
June 1, 2025
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Welcome to the latest edition of Cleantech for Europe’s Policy Update, your one-stop-shop for EU cleantech policy news and analysis.
On 28 May, the Commission unveiled its Startup and Scaleup Strategy. The strategy aims to boost innovative start-ups and scale-ups as key drivers of economic growth. It builds on existing Commission initiatives that already outline concrete measures—ranging from upcoming funding commitments and financial instruments to lead markets, public procurement, private capital mobilisation, and state aid rules.
Main takeaways:
By Q1 2026, the Commission will propose a 28th regime to streamline cross-border operations for SMEs. The plan focuses on creating a European legal entity and advancing harmonisation in taxation, labour, and social security laws.
🔗 Read more: The EU Startup and Scaleup: Strategy Choose Europe to start and scale
On 21 May, the Commission released its Communication on the Single Market Strategy, outlining bold actions to cut barriers to trade and investment, support SME growth, and reduce burdens on businesses through digitization. It issued the communication alongside the fourth omnibus package, which translates most of these priorities into concrete legislative proposals.
Main takeaways:
🔗 Read more: The Single Market: our European home market in an uncertain world
Express Updates!
🫧 European Hydrogen Bank’s Second Auction: High Demand, Low Premiums, and Structural Risks
On 20 May, the European Hydrogen Bank held its second auction, allocating €992 million to 15 projects across five countries. These projects aim to produce 2.2 million tonnes of renewable hydrogen over 10 years, with subsidies ranging from €0.20 to €1.88/kg. A third auction, with up to €1 billion in funding, is planned for late 2025. Non-price criteria (e.g. EU content) did not deter participation and helped protect EU electrolyser manufacturers from Chinese competition. Despite strong demand, awarded subsidies averaged around €0.50/kg, raising concerns about project viability.
🌍 Foreign Direct Investment Screening Endorsement at the European Parliament
On 8 May, the European Parliament backed a draft regulation to strengthen EU control over foreign investments that may threaten European interests by harmonising FDI screening. The report aims to let the Commission review sensitive investments to protect EU security. Once adopted, the regulation will also empower the Commission to assess whether investments in sensitive sectors threaten EU security or public order. According to Glucksmann, the massive investments by Chinese carmaker BYD in Hungary are a prime example of operations that should be monitored.
☀️ Omnibus Package to Shorten Renewable Energy Permitting Times
On 13 May, the Commission announced an “Omnibus” legislative package to streamline permitting for renewable energy projects. Aimed at cutting permit delays from up to a decade to six months, the package may revise environmental directives and spark policy debate. It will exclude the Energy Efficiency Directive (EED) but include exemptions for small and mid-cap companies, supporting faster deployment of renewables while balancing environmental concerns.
🏭 Adoption by the European Parliament and the Council Of Their Positions on the CBAM Simplification
On 22 May, European Parliament endorsed the Commission’s proposal, which is a part of the “Omnibus I” simplification package, adopting only technical amendments for clarification purposes and supported a new de minimis mass threshold of 50 tonnes. This might exempt the vast majority (90%) of importers while environmental objectives remain achievable, as the rules will still cover 99% of total CO2 emissions from imports of iron, steel, aluminium, cement and fertilisers. On 27 May the Council also adopted its general approach, allowing both to start negotiations as soon as possible.
⚡ Official Close of the Innovation Fund 2024 Calls on Net-Zero Technologies and Electric Vehicle Battery Cell Manufacturing
The 2024 Innovation Fund calls closed with 373 proposals, reflecting strong industry interest in clean technologies. Up to €3.4 billion in EU ETS revenues will support these projects. The Net-zero Technologies call received 359 proposals seeking €21.7 billion—nine times its €2.4 billion budget—mainly from heavy industry sectors such as chemical, cement and lime, refineries, and hydrogen. The Electric Vehicle Battery Manufacturing call saw 14 proposals requesting €1.6 billion, exceeding its €1 billion budget, mainly for projects in Lithium-ion nickel magnesium and cobalt (Li-Ion-NMC). Combined, these projects aim to avoid 139.8 million tonnes of CO₂ over 10 years.
🌍 €630 Million Worth New Calls under Horizon Europe for Climate, Energy and Research Projects
On 19 May, the European Commission launched new calls for projects under Horizon Europe's 2025 Work Programme for Cluster 5 – which groups together topics on Climate Action, Energy and Mobility. A total of EUR 636.6 million in EU funding is available under these calls covering projects focused on the climate transition, climate science, climate neutrality, sustainable and secure energy supply, and smart mobility.
⚡ European Grids Package
On 13 May, the European Commission launched a call for evidence and public consultation on the upcoming European Grids Package, inviting for input until 5 August 2025. The package—part of the Competitiveness Compass and Clean Industrial Deal—aims to modernise grid infrastructure, speed up permitting, and improve renewable integration.
🏭 Industrial Decarbonisation Accelerator Act (IDAA) Stakeholder Consultation
As part of the Clean Industrial Deal implementation, the European Commission will put forward a proposal for an Industrial Decarbonisation Accelerator Act (IDAA). Its general objective will be to increase sustainable and resilient industrial production, in energy-intensive sectors, by supporting decarbonisation investments in the EU. The Commission stakeholder consultation ends on July 8th and invites input on how to build and protect European lead markets for low-carbon products, while streamlining permitting for industrial energy access and decarbonisation.
🌐 Ecosystem news
Vattenfall and terralayr, a Swedish energy utility and a Swiss developer of renewable battery storage systems, have signed the first known 7-year, 55 MW multi-asset capacity toll, a groundbreaking offtake agreement for a decentralized fleet of battery storage systems in Germany. terralayr and RWE, one of the world’s largest operators of renewable and flexible assets, have also closed a five-year tolling agreement covering the market optimization of 50 MW/100 MWh of storage capacity in Germany.
Ionity, a joint venture between major automakers and BlackRock’s Climate Infrastructure Platform, secured a €600 million loan from nine commercial banks. It plans to double its network to 13,000 charging points across Europe—marking the largest loan in the European EV charging sector.
SkyNRG, a Dutch frontrunner in the Sustainable Aviation Fuel industry, has secured a €250M investment from APG, Dutch pension investment company, to develop and construct SAF production facilities in the Netherlands, Sweden and the United States.
Solveo Energies, a French independent renewable energy producer, has raised €98 million in a major financing round led by Mirova, a responsible investment affiliate of Natixis Investment Managers. The funding will fast-track the commissioning of renewable projects and support Solveo’s long-term ambition of deploying 800 MW in installed capacity by 2030.
trawa, a German data-driven electricity provider simplifying and professionalising energy procurement and management for mid-sized businesses, has secured €24M in Series A funding, with VCs such as Norrsken or SpeedInvest.
The International Energy Agency’s Global Critical Minerals Outlook 2025 highlights lithium iron phosphate (LFP) batteries’ rapid growth, now supplying nearly half of the electric vehicle market, up from under 10% in 2020. However, LFP supply chains are highly concentrated in China, which also leads in technology and may impose export controls. To reduce dependency, the IEA urges policymakers to diversify supply chains by supporting domestic production, lowering equipment costs, and de-risking key projects. Sodium-ion batteries offer an alternative with more geographically varied supply chains, where the US and Europe are active. Innovations like AI-driven exploration and advanced recycling can boost supply diversification by reducing costs and improving discovery rates.
How Europe’s Grid Operators Are Preparing For The Energy Transition – A new report by Beyond Fossil Fuels, Ember, E3G, and IEEFA warns that 1,700 GW of renewables and hybrid projects are waiting for grid connection in 16 EU countries—over three times what’s needed to meet 2030 goals – and €7.2 billion in curtailment costs were paid in 7 countries due to grid constraints. They call for overhauling grid operators’ mandates and creating an independent EU energy system planner.
