Banks Urged to Back EU Clean Industrial Deal with Scalable Finance and Long-Term Policy Support

juillet 18, 2025

11:18 am

Key Impact Points:

EU needs €1.24 billion annually to meet 2030 decarbonization targets—70% of which must come from bank financing.
Fragmented national policies are slowing progress; an EU-wide approach can create clarity and attract capital.
UNEP FI, NZBA, and EBF propose 6 actions to help banks de-risk and scale investments in clean industry.

EU Unveils Clean Industrial Deal to Align Industry and Climate Goals

In February 2025, the European Commission launched the Clean Industrial Deal (CID), positioning it as the EU’s core industrial strategy to make decarbonization a growth engine. The CID aims to mobilize public and private capital to meet 2030 targets—requiring €1.24 billion annually—with banks playing a central role in financing.

“The Clean Industrial Deal has great potential to support the EU’s economic and climate goals, especially as it aims to de-risk investments for banks and financial institutions to scale financing for economy-wide low-carbon development,” said Eric Usher, Head of UNEP FI.

27 National Approaches Are Stalling Progress

Currently, 27 national industrial policy frameworks across the EU create cross-border uncertainty. This fragmentation is stifling innovation, delaying clean tech deployment, and discouraging private investment. The CID promises to bring coherence, reduce risk, and accelerate project timelines.

6 Banking-Focused Recommendations to Scale the CID

UNEP Finance Initiative, the Net-Zero Banking Alliance (NZBA), and the European Banking Federation (EBF) convened industry leaders and released six key recommendations to ensure the CID achieves impact at scale.

1. Support SMEs with Scalable Green Financing

Banks should expand access to green loans and sustainability-linked products tailored to small- and medium-sized enterprises (SMEs). Aggregated project platforms, simplified reporting, and venture debt for cleantech startups can increase SME participation in the industrial transition.

2. Address Green Premiums with Revenue Certainty

To close the “green premium” gap for less mature technologies, consistent carbon pricing via the EU ETS and CBAM is essential. Tools like carbon contracts for difference (CCfDs) and long-term power purchase agreements (PPAs) will provide the stable revenue streams investors need.

3. Scale Guarantee and Blended Finance Mechanisms

New technologies like green steel and hydrogen carry high upfront risks. Expanding guarantees and blended finance schemes can help banks manage these risks without breaching prudential requirements. The new Industrial Decarbonisation Bank aims to direct €100 billion into this space.

4. Streamline Permitting to Cut Costs

The upcoming Decarbonisation Accelerator Act, expected in Q4 2025, is set to reduce permitting delays. Faster, more predictable timelines can improve financing conditions by reducing construction risks and boosting returns.

5. Coordinate Energy and Industrial Policy

Aligning the CID with energy initiatives like the European Grids Package and Action Plan on Affordable Energy will lower input costs and drive industrial decarbonization at scale.

6. Anchor Long-Term Climate Policy

Avoiding sudden reversals and providing long-term net-zero pathways will build investor confidence and help banks support clients through political shifts.

“Bringing together key stakeholders from banking, business, and policymaking is key to develop understanding of how banks can maximize their participation in the Clean Industrial Deal,” said Wim Mijs, CEO, European Banking Federation.

“Mobilizing private capital requires clean technologies and supportive industrial policies. With these in place, banks can play an important role in financing the EU’s industrial ambitions,” added Antoni Ballabriga, NZBA Steering Group Member and BBVA Global Head of Sustainability Intelligence & Advocacy.

Next Steps

UNEP FI, NZBA, and EBF will continue convening stakeholders to shape policies that align capital with climate and competitiveness. A more unified and bankable Clean Industrial Deal could unlock the capital Europe needs to lead in the global low-carbon economy.