Today, the European Commission has unveiled the Clean Industrial Deal, a step towards Europe’s industrial transformation. But where is the 2040 climate target? Industrial policy and climate ambition must go hand in hand. The decision to publish the Clean Industrial Deal without a clear 2040 target is a missed opportunity to ensure a balanced approach between economic growth and decarbonisation.
The missing link
A legally binding 2040 target of at least 90% net emissions reduction is essential to keep Europe on track for climate neutrality by 2050. Without it, we risk a dangerous policy gap between the 2030 Fit for 55 package and the 2050 goal – one that could stall investment and weaken local climate action.
“The Clean Industrial Deal sets the stage for Europe’s future, but without a binding 2040 climate target, the plan is incomplete,” insists Minna Arve, Mayor of Turku and Eurocities Shadow Vice President for Climate Resilience. “Cities need certainty to invest and deliver real climate action. We urge the Commission to act now. Without clear targets, we risk losing time we don’t have.”
Industrial transformation alone is not enough. The Clean Industrial Deal must be backed by clear climate commitments, strong local participation, and the right financial and regulatory tools.
Risks and opportunities in public procurement
The Clean Industrial Deal proposes additional work on procurement outside the revision of the Public Procurement Directives. But instead of simplifying the process, this risks increasing fragmentation, contradicting the Commission’s own focus on streamlining regulation.
We urge the Commission to act now. Without clear targets, we risk losing time we don’t have.
There is, however, potential for positive change. The proposed Industrial Decarbonisation Accelerator Act helps mainstreaming sustainability criteria in procurement. Introducing resilience and sustainability criteria in procurement could stimulate EU-based supply in energy-intensive sectors. But for this to work, it must be adaptable to local needs and avoid excessive administrative burdens.
The introduction of voluntary decarbonisation labels under the same act could also support public buyers by helping them identify best-performing products without the need for complex assessments. If well designed and widely recognised, these labels could become a valuable tool for cities to drive sustainable procurement in line with EU climate goals.
“We welcome the Clean Industrial Deal’s emphasis on circular economy. Cities are the first implementers of circular economy measures. The upcoming Clean Industrial Dialogue on Circularity, ahead of the Circular Economy Act in 2026, is a key opportunity to strengthen collaboration. Cities must have a seat at the table to contribute meaningful solutions that support Europe’s circular transition,” says Louise Coffineau, Head of Advocacy at Eurocities.
Beyond procurement, the Clean Industrial Deal rightly focuses on competitiveness, skills, and job creation. Cities welcome the strong emphasis on social fairness, ensuring that workers and communities benefit from the transition, and the recognition of affordable housing as a key factor in workforce mobility. However, this must be matched with concrete action to empower cities – where workforce development, reskilling, and social policies are delivered every day. The mention of social leasing for heat pumps is also a step in the right direction, making sustainable energy solutions more accessible to citizens.
Critical gaps
Ensuring a truly fair transition requires meaningful cooperation with the very actors delivering it on the ground. And yet, cities are again only mentioned in the margins. While ‘local authorities’ are included in discussions on the European Fair Transition Observatory, structured city engagement remains weak. This follows a concerning pattern we’ve seen before – in the Vision on Agriculture and Food, where cities were acknowledged but only on the periphery, with engagement limited to an annual dialogue.
This limited recognition of cities is not just a governance issue, it has real financial consequences. The Clean Industrial Deal highlights strong support for industry investments in sustainability in the next EU budget, but it raises questions about how this funding will be allocated and whether cities will have direct access. Without a clear commitment to local level investment, critical projects in cities will struggle to move forward.
Cities are already creating crucial demand for clean tech under the EU Cities Mission and other EU initiatives - yet they are not considered equal partners in the new industrial landscape.
“The Clean Industrial Deal is a chance to strengthen Europe’s green industry, but cities are still missing from the equation. Cities are already creating crucial demand for clean tech under the EU Cities Mission and other EU initiatives – yet they are not considered equal partners in the new industrial landscape. If the EU wants a competitive, climate-neutral future, it must invest where the transition is happening: in cities,” says Aleksandra Dulkiewicz, Mayor of Gdansk and Eurocities Shadow Commissioner for Climate Finance.
The scale of investment is clear. Under the EU Cities Mission alone, 112 cities create a demand for clean tech of €650 billion by 2030 to reach climate neutrality. And that’s just the beginning. Cities are not just implementing policies; they are shaping the market for clean industrial solutions. If Europe wants to secure its industrial future, it must ensure cities have the financial tools to deliver this transition.
Stepping up and going forward
Cities are committed to climate action and the green transition. In the latest Eurocities Pulse survey, 67% of city leaders ranked climate action as their top priority. But cities cannot act alone. For example, industrial emissions are among the highest in urban areas, yet many Mission Cities do not currently report or count these emissions in their Climate City Contracts because regulatory power remains at the national level. If Europe is serious about reducing industrial emissions, cities must be included in governance structures and given the tools to act.
The Clean Industrial Deal sets an important direction, but without a strong 2040 climate target, it risks being incomplete. Climate action and industrial strategy must reinforce each other, not compete. Without clear emissions reduction goals, we risk uncertainty, stalled investment, and a slower transition.
The Clean Industrial Deal is a step forward. Now we need the 2040 target to match.
