OPPORTUNITIES FOR JAPANESE BUSINESSES UNDER THE EU’S PROPOSED INDUSTRIAL ACCELERATOR ACT
Brussels, 4 March 2026 – The draft “Industrial Accelerator Act” (or “IAA”, COM(2026) 100 final) announced by the European Commission will create lead markets for low-carbon, European made technologies and products, support the adoption of cleaner, future-ready technologies and thereby strengthen Europe’s resilience, industrial competitiveness and economic security.
The IAA will cover manufacturing and will require companies engaged in public procurement projects or receiving subsidies to use a minimum percentage of EU-made (or other eligible) products in strategic sectors. To facilitate the clean industrial transformation and ensure supply-chain resilience, it will focus on energy-intensive industries, the automotive value chain and net-zero technologies.
The IAA is committed to safeguarding the openness of its market through granting equal treatment for public procurement opportunities:
“The EU remains one of the world's most open markets and is committed to maintaining that openness as a key source of economic strength and resilience. The proposal encourages greater reciprocity in public procurement, by providing equal treatment to countries that offer EU companies access to their markets, in line with the Draghi report. Content from partners with which the Union has concluded an agreement establishing a free trade area or a customs union, or that are parties to the Agreement on Government Procurement, and where relevant obligations of the Union exist under that agreement, shall be deemed to be of Union origin. For other public interventions, notably public schemes and auctions, partners can be covered within the IAA scope if they have a free trade agreement or customs union with the EU.”
Key proposals:
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Introduce “targeted and proportionate ‘Made in EU’ and/or low carbon requirements for public procurement and public support schemes” for steel, cement, aluminium, cars, net-zero technologies and other sectors. These measures should reduce CO2 emissions by 30.58 million tonnes and are listed in Annex II to the proposed regulation.
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Stimulate of green steel through the adoption of specific low-carbon preferences to create market demand, confidence and predictability for investors.
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Give greater certainty to investors through streamlined permitting process to speed up and simplify manufacturing projects with single digital ‘one-stop-shops’ working within clear time limits and, for energy-intensive decarbonisation projects, giving tacit approval to intermediate stages of the permit-granting process. Digitalised permitting could lead to savings of up to €240m for the whole manufacturing sector.
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Create “Industrial Acceleration Areas” to facilitate industrial symbiosis, to stimulate the development of clean manufacturing project clusters and boost essential energy infrastructure investments and area-wide permits.
What are ‘Made in EU’ proposals?
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According to the Commission’s Questions and answers on the Industrial Accelerator Act: “‘Made in EU' and low-carbon requirements apply to the cement used in construction and the aluminium used in automotive and construction, when subject to public procurement and other forms of public intervention. For net-zero technologies, the Act introduces ‘Made in EU' requirements for batteries, battery energy storage systems (BESS), solar PV, heat pumps, wind, electrolysers, and nuclear technologies, when subject to certain public procurement procedures, auctions, and support schemes. It also introduces ‘Made in EU' provisions for electric vehicles (EVs) and their components.”
What does this mean for Japan and for Japanese companies?
・The EU remains open to FDI.
・As far as public procurement, auctions and ‘other forms of public intervention’ are concerned, content originating in Japan will be eligible provided EU companies can take part in Japanese public procurement opportunities:
“Article 8 – Content equivalent to Union origin in public procurement – 1. With respect to the Union origin requirements referred to in Article 11, content originating in third countries with which the Union has concluded an agreement establishing a free trade area or a customs union, or that are parties to the Agreement on Government Procurement, where relevant obligations of the Union exist under that agreement, shall be deemed to be of Union origin.”
“Article 9 – Content equivalent to Union origin in other forms of public intervention – 1. With respect to the Union origin requirements set out in Article 12, content originating in third countries with which the Union has concluded an agreement establishing a free trade area or a customs union shall be deemed to be of Union origin.”
・Because of the EU-Japan EPA, high value FDI (more than €100m) in emerging strategic manufacturing sectors where more than 40% of the global manufacturing capacity is held by Japan will not be subject to additional controls:
“Article 17 – Scope – 1. This Chapter shall apply to foreign direct investments exceeding a value of EUR 100 million in the emerging strategic manufacturing sectors referred to in paragraph 2, where more than 40 % of the global manufacturing capacity is held by the third country of which the foreign investor is a national or undertaking.
“Such investments shall not be implemented unless explicitly approved by the Investment Authority or the European Commission, referred to in Article 19, in accordance with the provisions laid down in this Chapter….
“3. This Chapter shall not apply to: (a) investors and investments covered by economic partnership and free trade agreements in force or provisionally applied by the Union to the extent relevant commitments have been made under those agreements, including investments made by the Union subsidiaries of such foreign investors;”
What is the status of these announcements?
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The announcement made addressed a proposed regulation. It would need to be negotiated and agreed by the European Parliament and the Council of the European Union before it can be adopted and enter into force. If adopted, it will be directly applicable and will have uniform application across the EU without the need for national implementing legislation.
More information:
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Industrial Accelarator Act – Proposal for a Regulation, Proposal for Annexes, Impact Assessment Report and other proposed legal documents
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Press Release – “Commission proposes Industrial Accelerator Act to strengthen industry and create jobs in Europe” (IP 26/515 of 04 March 2026)
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Q&A – “Questions and answers on the Industrial Accelerator Act” (Q&A 26/516 of 04 March 2026)
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Fact Sheet – “The Industrial Accelerator Act – Growing EU Industry, Securing Jobs for the Future”
Disclaimer
The EU-Japan Centre for Industrial Cooperation is not involved in any way in the calls / proposals promoted on this webpage (i.e., it has no role in accepting or processing questions or offers submitted in relation to a call). The contents of this webpage are made available for general information and non-commercial purposes only. It does not claim to be comprehensive or up to date and is not intended to provide legal or other advice. No person should rely on the contents of this webpage without first obtaining advice from a qualified professional person.
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