European Commission President Ursula von der Leyen, in a video message to the Clean Tech Conference 2026 on 19 May 2026, announced that the Commission will present an Electrification Action Plan with clear targets to end Europe's exposure to fossil fuel price shocks. She also signalled a focus on channelling Emissions Trading System (ETS) revenues back into European businesses as part of an ETS reform this summer.
Von der Leyen framed the push for electrification and homegrown clean energy as a matter of security and independence, citing the situation in the Middle East and the ongoing war. She noted that electric vehicle purchases have risen by 51% since the start of the war, arguing that consumers are already moving but that more is needed at European level.
The speech contained several concrete proposals and references to existing policy. Von der Leyen pointed to the Industrial Accelerator Act, already introduced, which aims to simplify rules, speed up permitting, and ensure foreign investments deliver value to Europe. She also highlighted the introduction of 'Made in EU' and low-carbon criteria for public procurement, intended to direct taxpayers' money to European industry.
On investment, von der Leyen emphasised the role of the ETS, noting that since 2005 emissions have fallen by 39% in covered sectors while the economy grew by 71%, and that the system has generated over EUR 260 billion. She stressed that at European level 100% of ETS revenues are reinvested into clean innovation, but that this is not the case at national level. The upcoming ETS reform this summer will focus on ensuring that revenues are channelled back into European businesses to build clean industries.
The speech did not provide specific numerical targets for the Electrification Action Plan or detailed timelines for the ETS reform. It remained at the level of announcing intentions and reaffirming existing commitments, such as the Industrial Accelerator Act and public procurement criteria.
Von der Leyen's message pushes for accelerated electrification and reduced reliance on fossil fuels, with a strong emphasis on European manufacturing and domestic industry. The tone is assertive regarding global competition, advocating for protectionist-leaning measures like 'Made in EU' criteria and channelling ETS revenues to European businesses. This represents a shift towards a more interventionist industrial policy, prioritising European self-sufficiency and competitiveness in clean tech.
European clean tech companies stand to benefit from increased public procurement preferences and potential ETS revenue reinvestment, which could lower their costs and boost demand. EU consumers may see higher upfront costs for electrification but long-term savings from reduced fossil fuel exposure. Foreign clean tech firms face a more challenging market due to 'Made in EU' criteria and stricter foreign investment rules. EU taxpayers may see their money directed towards domestic industry, which could support local jobs but might also lead to higher public spending or less competitive pricing.
Von der Leyen's speech did not address potential trade-offs, such as the cost of accelerated electrification for lower-income households or the risk of trade retaliation from partners affected by protectionist measures. The announcement of the Electrification Action Plan and ETS reform signals a continued push for EU-level coordination, but the lack of detail leaves room for debate on implementation.
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