This Week in Manufacturing — Brussels (#27, 2026)
Commission presents Electrification Action Plan, ETS review; State aid for French offshore wind, German semiconductors; Council reforms Research Fund for Coal and Steel.
July 12, 2026 to July 18, 2026
Commission presents Electrification Action Plan, ETS review; State aid for French offshore wind, German semiconductors; Council reforms Research Fund for Coal and Steel.
📋 In This Week's Newsletter
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
• ✒️ EP Committee Work
• 📚 What We're Reading This Week
European Commission
Commission tables Electrification Action Plan and Emission Trading System review
On 16 July 2026, the European Commission, led by President Ursula von der Leyen, presented the Electrification Action Plan alongside a review of the EU Emissions Trading System (ETS). Executive Vice-President Teresa Ribera, Commissioner Wopke Hoekstra, and Commissioner Dan Jørgensen detailed the strategy at a press conference. The plan proposes to double Europe's current electrification rate to 46% by 2040, supporting clean energy uptake across industry, buildings, and transport. The ETS review introduces a 3.7% linear reduction factor for emissions 2031–2035 and 1.7% for 2036–2040, aligns free allocation with decarbonisation investments, and establishes a €100 billion Industrial Decarbonisation Bank. Measures also expand ETS coverage to municipal waste incineration and strengthen carbon pricing for aviation and maritime sectors.
Commission approves €63 billion French State aid scheme for offshore wind
On 12 July 2026, the Commission approved a €63 billion French support scheme for eleven new offshore wind farms, under the Clean Industrial Deal State Aid Framework (CISAF). The measure will run for 25 years, awarding aid via transparent, competitive bidding and two-way contracts for difference. The supported farms are expected to deliver up to 11.1 GW capacity and produce up to 47.8 TWh of renewable electricity annually. The scheme replaces previous support for three windfarms approved in August 2025.
Commission clears €659 million German State aid for four semiconductor projects
On 13 July 2026, the Commission authorised €659 million in German aid for four semiconductor facilities by Element 3-5 GmbH, Vishay Siliconix Itzehoe GmbH, KLA-Tencor MIE GmbH, and KETEK GmbH. These first-of-a-kind plants, supported under Article 107(3)(c) TFEU and the European Chips Act, aim to strengthen Europe's value chain and manufacturing of silicon carbide wafers, power MOSFETs, metrology tools, and specialist detector chips. Funding is shared between federal and Länder budgets, with recipients agreeing to knowledge dissemination and security-of-supply clauses.
EU Legislation (Official Journal)
Digital product passport registry implementation rules adopted
Commission Implementing Regulation (EU) 2026/1778 of 16 July 2026 establishes the technical and operational rules for the digital product passport registry set up under Regulation (EU) 2024/1781. It defines verification of economic operators, data security requirements, interoperability, and the handling of personal data. The regulation applies to products covered by recent EU ecodesign and sectoral laws.
Council reforms Research Fund for Coal and Steel and its Research Programme
Council Decision (EU) 2026/1545 of 29 June 2026 introduces new measures for the implementation of Protocol No 37 on the financial consequences of the expiry of the ECSC Treaty, allowing use of remaining assets for research until 2034 and repealing Decision 2003/76/EC.
EU Council
Upcoming informal Environment Council to focus on climate and industrial policy
An informal meeting of environment ministers is scheduled for 23 July 2026 to discuss policy priorities, with expected attention to recent Commission proposals on climate and electrification.
EP Committee Work
ITRE Committee reviews industrial and energy policy initiatives
The ITRE Committee met on 13 July 2026 in Brussels to discuss developments in industrial policy, energy, and research, following recent Commission proposals on electrification and manufacturing.
INTA Committee examines foreign subsidies, outbound investment, and EU-China trade
On 13–14 July 2026, the INTA Committee held presentations on textile trade flows, outbound investment screening (Recommendation EU 2025/63), and dual-use export controls. The agenda included a review of the annual macro-financial assistance report 2025, discussions on global steel overcapacity, and a presentation by the Commission on the Foreign Subsidies Regulation evaluation.
Public hearing reviews strategy on fertiliser market resilience
The AGRI Committee organised a hearing on 13 July 2026 addressing the state of the EU fertilisers market, with officials and external experts exploring supply security, innovation, and circularity for the manufacturing and agricultural sectors.
What We're Reading This Week
- The EU-China trade war: what if Beijing hits back?: Escalation of EU-China trade tensions could trigger retaliatory measures from Beijing, impacting global supply chains and economic stability.
