CO₂ Value Europe welcomes the European Commission’s proposal for an Industrial Accelerator Act (IAA), recognising it as an important step towards strengthening Europe’s industrial competitiveness while accelerating the transition to climate neutrality.

In particular, the association welcomes the introduction of a definition for ‘sustainable carbon sources’, including Carbon Capture and Utilisation (CCU) technologies. This reflects one of the key priorities consistently advocated for by the European CCU community and provides an important foundation for developing a European circular carbon economy.

The proposed IAA represents a valuable opportunity to support the emergence of a captured carbon market and to acknowledge the use of sustainable carbon across a broader range of industrial products. However, additional measures will be necessary to unlock the full potential of CCU technologies and provide the clarity needed for investment and deployment at scale.

In its position paper, CO₂ Value Europe highlights three key recommendations:

1.Amending the definition of ‘sustainable carbon sources’ to include ‘captured CO (carbon monoxide)’

While the current definition includes carbon captured from CO₂ emissions, it does not account for captured carbon monoxide (CO), which plays an important role in the production of fuels (i.e. RCFs) and chemicals.

Including captured CO in the definition of sustainable carbon sources would better reflect the reality of the CCU value chain and ensure consistency across existing European industrial and climate policies. Captured CO already contributes to innovative industrial projects and is expected to play a significant role in future sustainable carbon chemical production pathways.

2.Creating market demand for sustainable carbon (including CCU) products through market pull measures

To accelerate the deployment of CCU technologies, CO₂ Value Europe calls for the introduction of market pull mechanisms to stimulate demand for products made from sustainable carbon sources.

Building on successful examples such as ReFuelEU Aviation and FuelEU Maritime, the association advocates for progressive mandates requiring the use of sustainable carbon in sectors such as chemicals and other carbon-intensive industries. A dedicated sub-quota for captured CO₂ and CO would support investment certainty and help establish a robust market for captured carbon.

The association also encourages the integration of sustainable carbon criteria into public procurement frameworks, including the use of captured carbon-based materials in public infrastructure projects, construction, fuels, and other strategic product categories.

3.Ensuring policy coherence across European industrial initiatives impacting the CCU value chain

The Industrial Accelerator Act sits at the intersection of several upcoming legislative files and initiatives that will shape the future of industrial defossilisation in Europe. CO₂ Value Europe therefore calls for a coordinated approach across key policy files and sectorial initiatives, including the Circular Economy Act, Biotech Act II, CO₂ transport infrastructure initiative, the EU ETS revision, and the Critical Chemicals Alliance.

Greater policy alignment would provide companies and investors with the predictability required to scale innovative CCU projects and strengthen Europe’s leadership in industrial carbon management.

• Supporting Industrial Clusters and Innovation in Industrial Manufacturing Acceleration Areas

The association also highlights the importance of facilitating CCU deployment within industrial clusters, where carbon sources, infrastructure, and industrial users can be efficiently connected. Measures such as streamlined permitting procedures, regulatory sandboxes, improved access to funding, and affordable renewable and low-carbon electricity would further accelerate project development.

• Incorporating CCU in Europe’s long-term industrial strategy

As discussions on the Industrial Accelerator Act advance, CO₂ Value Europe remains committed to working with European policymakers and stakeholders to ensure that CCU technologies are fully integrated into Europe’s industrial defossilisation strategy and can contribute effectively to achieving the EU’s climate objectives for 2030, 2040 and 2050.

Find our full submission here.