Cleantech for Europe’s Policy Update - November edition
November 12, 2025
As COP30 Brazil kicks off in Belém, EU Ministers have agreed on a deal to cut greenhouse gas emissions by 90% by 2040, allowing up to 5% of that target to be met through international carbon credits. The compromise, praised by António Costa and several Governments, sets a legally binding 85% domestic reduction goal and opens the door for limited offsets outside the bloc. The package also delays the entry into force of ETS2 by one year to address concerns by Member States around the political backslash it may cause amidst a cost-of-living crisis. The plan still requires approval from the European Parliament on November 13th.
More worrying though is the part around the ETS1 on potentially delaying the phase-out of free allocations under the ETS and connecting the Market Stability Reserve to the Industrial Decarbonization Bank. With the intent to create a downward pressure on the ETS1 price, it will reduce the incentive for incumbents to decarbonize but also negatively impair the business case of technologies, projects and companies who tabled on a stable ETS1 price. This is likely to freeze actual investments, delaying investment decisions. Moreover, the Market Stability Reserve may be used to fund the Industrial Decarbonization Bank which would result in further downward pressure on the ETS price. Both – if confirmed – are undoubtedly going to have a chilling effect on the business environment for certain technologies and projects.
At a decisive moment for Europe’s industrial future, we are launching our new paper ahead of the European Commission’s proposal for an Industrial Accelerator Act (IAA), due on December 10th. It argues that Europe can no longer afford hesitation on industrial policy. With high energy costs, fragmented markets, and rising global competition, a robust Made in Europe cleantech strategy is essential to reclaim industrial leadership.
On October 23rd, in a speech to the European Parliament, President @Ursula von der Leyen already warned that Europe risks “new and dangerous dependencies” if it fails to secure control over clean technologies and manufacturing. While EU cleantech exports reached €80 billion in 2024 – tripling in six years – China now exports nearly twice as much, threatening Europe’s industrial base. Von der Leyen called for decisive acceleration to secure critical raw materials, strengthen Europe’s manufacturing base, and avoid repeating mistakes like the loss of Europe’s solar industry. She announced three measures: introducing a “Made in Europe” criterion in public procurement, ensuring foreign investments create real value and jobs in Europe, and stepping up support for strategic sectors such as batteries and automotive manufacturing.
In this regard, our paper outlines a pragmatic roadmap for turning the IAA into a true catalyst for clean industrial growth:
🌐 Create strong demand signals for European-made cleantech through local content rules in procurement and funding
🤝 Introduce an EU-level FDI screening mechanism and joint venture requirements for key value chains
🛡️ Deploy trade measures to protect emerging manufacturing capacity from unfair competition
In a constrained fiscal environment, the IAA must send a clear signal to investors that Europe is ready to scale and defend its clean industrial base.
Also note that the European Commission launched on November 3rd its public consultation on the revision of the Public Procurement Directives, that you can find here, open until January 26th.
On November 5th, the Commission’s newly published Sustainable Transport Investment Plan (STIP) endorsed a market intermediary to de-risk sustainable fuel investments. The plan announces the creation of an Early Movers Alliance and a task force to design a pooled double-sided auction for e-SAF, targeting €500 million by 2026. This model will offer long-term contracts to producers and short-term offtakes to buyers – boosting bankability and accelerating project deployment. This is a major step toward creating a predictable, investable market for e-fuels under ReFuelEU.
On October 25th, President von der Leyen announced ReSourceEU – a new initiative to be unveiled by year’s end in response to China’s tightened export controls on rare earths and battery materials and technology. The plan seeks to cut Europe’s dependencies by boosting domestic extraction, processing, recycling, and circular recovery; enabling joint purchasing and strategic stockpiles; and expanding supply partnerships abroad. It may draw on RRF and Global Gateway funds to support mining and recycling projects. Yet the announced proposal largely mirrors the Critical Raw Materials Act – without addressing bankability. To make CRM projects viable, Europe needs to equip itself with the mandate to combine equity stakes, long-term loans, price floors, and offtake guarantees – as already done by the US and planned by the G7.
On October 28th, the European Commission announced the launch of the Scaleup Europe Fund. The Fund aims to address the lack of large equity capital tickets (above €100M) in a set of critical technologies for long-term European competitiveness (cleantech, quantum, AI, biotech). Initial interested investors include the European Commission and the European Investment Bank (EIB) Group, and private actors including @Novo Holdings, Export and Investment Fund of Denmark, CriteriaCaixa, Santander/Mouro Capital, Fondazione Compagnia San Paolo/Intesa Sanpaolo/Fondazione Cariplo, APG AM, acting on behalf of Dutch pension fund ABP, Wallenberg Investments, and BGK. The initial target is €5B Assets Under Management with the possibility to expand it to other investors next year.
In a rather novel approach for the EU, the Fund will be structured as a private structure, with a private investment team and managed according to private market standards, to ensure it is attractive to potential private investors. This Fund needs to focus in part on cleantech and on actual gaps in the market, to ensure it addresses market failures rather than risking 'crowding out'.
We will have to see over time how it complements other EU initiatives such as the European Tech Champions Initiative 2.0 with its €3.85B fund-of-fund structure aimed at late-stage growth equity venture capital funds.
The European Commission has awarded on November 3rd €2.9 billion to 61 net-zero technology projects across 18 countries and 19 industrial sectors under the EU Innovation Fund, down from last year’s €4.2 billion for 77 projects. Although still targeting decarbonisation of energy-intensive industries, the concentration of projects on carbon capture, utilisation and storage (CCUS) risks delaying the scaling-up of technologies that ‘design-out’ fossil fuels altogether. The call drew requests exceeding the budget ninefold, reflecting both the sector’s dynamism and the growing competition for limited EU resources. This latest round highlights Europe’s drive to maintain global leadership in cleantech while navigating tighter fiscal space. It will nevertheless be key to ensure those funds are actually disbursed to make the Innovation Fund an effective tool, as the current disbursement rate remains 4.7% of the committed funds.
On November 3rd, the industry ministers of 17 Member States signed the Berlin Declaration, calling for a clear strategic European industrial policy built on five pillars: simplification, AI leadership, lead markets, resilience and defense, and innovation. The declaration highlights growing support among member states for European lead markets underpinned by EU preference criteria in public procurement, but crucially also “other EU and national public incentive schemes” beyond public procurement. The document does note with caution that the introduction of local content requirements may inevitably have an impact on the trade relations of the EU.
On October 21st, the Cleantech Friendship Group hosted Commissioner for Energy and Housing Dan Jørgensen at the European Parliament in Strasbourg for a breakfast on Next-Gen Grids: Innovation, Security and Investment. Members of the Group joined grid innovators for a timely debate ahead of the European Commission’s forthcoming Grids Package, aimed at accelerating Europe’s grid expansion, modernisation and digitalisation. With electrification, AI-driven demand and ageing infrastructure straining the system, speakers called for urgent action to make Europe’s grids the backbone of its clean energy transition. Key priorities included faster permitting (cutting from 5–10 years to 6–24 months), stronger EU coordination and security, smarter financing and greater grid flexibility, essential to unlock clean technologies and boost Europe’s competitiveness.
Rubio Impact Ventures: Amsterdam-based Rubio Impact Ventures has launched its third impact fund with over €70 million in commitments to back 30 startups tackling climate change and social inequality. The fund brings Rubio’s total assets under management to €220 million. Despite a tough fundraising climate, Rubio continues to prove that impact and financial returns go hand in hand.
Endgame Capital: Brussels-based Endgame Capital has closed €8 million toward its €10 million target to back near-market climate technologies. The fund targets scalable, commercial-ready solutions delivering major CO₂ reductions without subsidies, with early investments including Ensol and Everbloom.
Refurbed raises €50M to expand AI-powered recommerce platform: Vienna-funded Refurbed, a leading European marketplace for refurbished electronics and household products, secured €50M in a round, alongside existing investors.
Altrove raises €8,5M to scale AI-designed sustainable materials: Paris-based Altrove secured a $10M Seed round, bringing total funding to around €12M. The company uses AI to design sustainable alternatives to critical materials, such as rare-earth-free magnets and lead-free compounds, to boost Europe’s industrial sovereignty.
Aampere raises €1.6M to scale its EV resale platform across Europe: Munich-based Aampere secured €1.6M. The startup operates an AI-powered platform for valuing and auctioning pre-owned electric vehicles, enabling sales within 48 hours with instant payment and home pickup. Already selling over 100 EVs per month, Aampere will use the funding to expand across major European markets.
Rondo signs partnership with HEINEKEN and EDP to help decarbonize Lisbon Brewery: HEINEKEN has announced a landmark partnership with Rondo Energy and EDP to install a 100 MWh thermal energy storage system at its brewery near Lisbon – one of Europe’s largest industrial heat decarbonisation projects. Rondo’s technology stores renewable electricity as heat in refractory bricks, delivering steam for brewing. Operations are expected to start in April 2027.
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