Cleantech for Europe‘s Policy Update - September Edition
September 17, 2025
On September 10, European Commission President Ursula von der Leyen gave her annual State of the European Union (SOTEU) speech. The President placed Europe’s climate transition at the core of a new competitiveness strategy—seeking to regain political momentum after a turbulent summer.
Von der Leyen argued that Europe’s choice is clear: move from fragmented efforts to a coherent ecosystem for innovation and industry—one that scales, competes, and leads globally.
She announced a dedicated “cleantech agenda” anchored on:
🪙 Capital: President von der Leyen announced significant investments will be made in cleantech to keep promising innovators in Europe, including with the forthcoming Scale-Up Fund and a new €1.8 billion Battery Booster. “We are catching up with US venture capital for clean tech – and way ahead of China,” she said, echoing trends Cleantech for Europe has highlighted in its Quarterly Briefings.
🏭 Production: Support for expanding clean industrial production in Europe, notably batteries— “a key enabler of other cleantech” at the “heart of our independence.”
🇪🇺 Demand: A “Made in Europe” criterion in public procurement and incentives for partners to buy European, to create lead markets and spark a virtuous cycle where “supply and demand go up, and prices go down.”
🛡️ Defensive trade tools: Acknowledging that “the global trading system is crumbling” and that Chinese overcapacity is undercutting European producers, she pledged: “We will review the implementation on our unfair trading practices legislation… we will always protect our industry from unfair competition.” This includes stronger instruments on steel, vehicles, and public procurement.
⚡ Modernised energy networks: Von der Leyen also unveiled plans for “energy highways” and a future Grids Package to tackle eight infrastructure bottlenecks and cut energy prices, alongside faster progress on the forthcoming Circular Economy Act. She affirmed that the EU must produce more renewables while, for the first time in a State of the Union, recognising nuclear power as a source of baseload energy.
Von der Leyen concluded: “Europe’s clean tech sector must stay in Europe – and we have to take urgent action.” The months ahead will show whether the EU can translate this agenda into swift, ambitious action to match global competition.
🔗Read more: President von der Leyen's Speech and progress report
On September 3, the European Commission tabled its second set of proposals for the 2028–2034 EU budget. In parallel, the Danish Presidency has launched intensive negotiations, aiming for a first compromise by December. But the outcome will ultimately signal whether the EU can align budgetary governance with industrial strategy and deliver the right incentives for Europe’s economic resilience.
It is crucial that the next MFF reconciles two imperatives: supporting energy-intensive industries on their decarbonisation path and scaling up cleantech manufacturing to meet the NZIA target of 40% domestic production by 2030. With tight fiscal space, the EU budget must act as a catalyst for private capital. This means flexible instruments, efficient use of limited resources, and a focus on de-risking rather than costly subsidies.
The European Commission approved €11 billion in French state aid under the Clean Industrial State Aid Framework (CISAF) to support three ~500 MW capacity offshore wind farms (one in Southern Brittany, two in the Mediterranean). Each will generate ~2.2 TWh annually. Support will take the form of 20-year two-way Contracts for Difference (CfDs), providing price guarantees to operators. Developers will be selected via tenders including new “resilience” criteria to diversify supply chains and reduce reliance on Chinese imports, inspired by the Net-Zero Industry Act (NZIA): no more than 25% of turbines and main components may come from China, and at least 15% of permanent magnets must be sourced outside China. This marks the first use of CISAF to back large-scale renewables with resilience-based procurement rules.
From October 1, France will grant an extra €1,000 on its electric car subsidy if vehicles are assembled in Europe and equipped with “European batteries” (produced or assembled in Europe). This raises the bonus to €5,200 for low-income buyers and €4,100 for others.
Launched on September 15 (open until October 13), the consultation aims to protect EU electricity and gas grids from geopolitical and climate risks and improve cross-sector coordination. Options include a single regulation covering electricity, gas and hydrogen security, harmonising or strengthening existing rules, or centralising EU-level oversight. A proposal is expected in early 2026.
On August 22, Mario Draghi delivered an impactful speech at the Rimini Meeting in Italy, reflecting on Europe's trajectory ahead. Whether it's the newly imposed tariffs from the EU-US trade deal or China's grip on our supply chain of critical raw materials – Europe needs to shift from acting as a spectator to being the lead actor. One year after his report, Draghi highlights again the urgent need for reforms to compete globally. Governments must determine which technologies to focus their industrial policy on and remove barriers in the single market. Ultimately, the challenge for Europe is going to be to act with determination and decisiveness not only during emergencies, but also in ordinary times.
Cleantech for Europe Summit is coming back to Brussels on December 3! One year into a new political mandate, Europe stands at a crossroads: are we moving towards what Mario Draghi called a “slow agony”, or will we seize the once-in-a-generation opportunity to become a clean industrial leader? Request your invitation to our Summit here.
.png)
By joining this global alliance, Spain commits to fostering early demand for breakthrough clean technologies in hard-to-abate sectors, including steel and cement, aviation and shipping, carbon dioxide removals. This milestone strengthens Europe and Spain’s role in driving industrial decarbonisation and positioning the Iberian Peninsula as a hub for climate innovation.
At the launch event, Cleantech for Iberia and its Director Bianca Dragomir participated alongside Prime Minister Pedro Sánchez, Vice-President and Minister of Ecological Transition Sara Aagesen Muñoz, and other key government leaders, together with Børge Brende, President of the WEF.
Vireo Electrification Fund I: On September 9, Vireo Ventures, the Berlin-based early-stage venture capital firm, announced the final closing of its Electrification Fund I at €50 million. It will focus on companies that are orchestrating and synchronizing generation, grids, storage, and downstream applications in mobility, industry, and real estate.
FERNRIDE raises €18M: FERNRIDE secured a €18M Series A extension, bringing its total to €75M. The Munich-based startup will scale its autonomous terminal tractors and expand into defence logistics while continuing deployments with customers like HHLA, Volkswagen and DB Schenker.
Aira raises €150M: Swedish cleantech firm Aira raised €150M from investors including Kinnevik and Temasek to accelerate the rollout of its energy-efficient heat pumps across Europe. The funds will expand its Poland factory, scale installer training, and boost deployments in key markets such as Germany, Italy and the United Kingdom.
· Caught in the US-China Crossfire: To Protect Itself, Europe Must Call a Critical Raw Material Emergency – CSDS Policy Brief
· China’s Overseas Clean-Tech Investments Cross $220 BN: Report – Saur Energy Desk
· Gunter Erfurt (former CEO Meyer Burger) on the lessons from the rise and fall of the European solar PV industry – Studio Energie
