🌎 The nEU Deal on the Bloc #235

Happy Monday!

This week, the EU is putting some steel in its climate commitments: With its newly announced €100bn Clean Industrial Deal, Brussels is hoping to iron out some regulations and weld its industries back into shape.

In other news, more chaos at US federal agencies, turbulence in SAF markets, and inside BP’s strategic shift.

In deals, $150m for electric vehicle charging stations, $34m for dairy proteins production, and $24m for mineral exploration technology.

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Out with the old, in with the nEU

Last week, EU leaders hit the gas on a "Clean Industrial Deal" to jump-start the bloc’s stalled industrial output and charge ahead on decarbonization. By removing some sticks and adding a bushel of carrots, the plan aims to rev up clean tech and turbocharge European industry to stay in the race with China and the US.

What happened

The EU announced its goal of climate neutrality by 2050 back in 2020, but now it’s putting its money where its mouth is, with new legislative direction and several financial commitments. It’s in part a response to the US’ Inflation Reduction Act, and takes a page out of that playbook by streamlining major reporting and carbon trade regulations, adding in new incentives, and encouraging private investment.

📝 Cutting red tape for reporting and trade

🎯 Goal: Lighten the regulatory load and help European companies stay competitive by swapping sticks for carrots.

The EU is narrowing its Corporate Sustainability Reporting Directive (CSRD) rules, limiting reporting to companies with 1,000+ employees and either €50M+ turnover or €25M+ balance sheet. Sector-specific reporting is scrapped, and binding standards are replaced with guidelines by 2026. Reporting deadlines for large EU companies (2026) and listed SMEs/non-EU subsidiaries (2027) are pushed back, but large public-interest companies (2025) stay on track. Non-EU parent companies (€150M+ EU turnover) will still report from 2029 under adjusted thresholds.
The Carbon Border Adjustment Mechanism (CBAM) — meant to cover carbon-heavy imports like steel and fertilizer — is also getting a slight breather. Originally set to start in 2026, it’s now delayed to 2027 and will exempt importers with less than 50 tonnes/year of embedded emissions, covering ~90% of importers while keeping 99% of emissions in scope. Importers get more flexibility in emissions data, choosing between actual emissions or default values with a markup, and the Commission may set default carbon prices per country, factoring in rebates.
The Corporate Sustainability Due Diligence Directive (CSDDD) will be pushed from July 2027 to July 2028 and drop EU-wide liability, leaving enforcement to national laws. Reporting is now limited to a company’s own operations, subsidiaries, and direct business partners, unless major risks arise further down the supply chain. Companies won’t be required to cut ties with non-compliant suppliers, and due diligence updates are now required every five years instead of annually. The climate transition plan mandate is gone, with companies only needing to outline planned actions.
The EU also plans to ramp up anti-dumping duties on cheap electric cars and clean tech imports from China.

🏦 A new €100bn ($105bn) Industrial Decarbonization Bank to support decarbonization projects

🎯 Goal: To offer more “carrots” for innovation, to decrease industry emissions by up to 30% and attract private investments that could bring the total to €400bn.

The new bank will pull together €20bn from the EU’s existing Innovation Fund, €30bn from voluntary contributions by member states, €25bn from future revenue of the EU Emissions Trading System (EU ETS), and €25bn from an updated InvestEU program. It’s set to come online in 2026.
The InvestEU program will now offer additional guarantees for funds focusing on industrial process modernization, climate tech manufacturing and deployment, energy infrastructure projects, clean mobility solutions, and waste reduction and recycling, for 2025.

⚡ Energy prices and infrastructure

🎯 Goal: To make industry more competitive by lowering electricity costs via electrification and expanded domestic clean power generation.

The European Investment Bank (EIB), the financial engine of the EU, will offer guarantees for small companies to sign long-term power purchase agreements with renewable energy providers starting this year. It will create support mechanisms that will be active by 2026 to support domestic power grid component manufacturing that will help to modernize Europe’s ageing grid.
Legislative measures including fast-tracked permits for energy-intensive industries could boost investment in clean projects. Brussels is urging member states to lower electricity taxes to the legal minimum to ease consumer bills.
The EU is planning to soften its gas storage targets to prevent price spikes, hoping to fuel some relief in Germany and other affected countries.
It directs countries to simplify state aid rules which will allow more flexibility for tax breaks and financial incentives targeting clean industrial investments later this year.

🔋 Strategic Initiatives

🎯 Goal: To secure critical resources and boost reuse.

The EU plans joint purchases of lithium and cobalt, inspired by the COVID-19 vaccine strategy, to reduce reliance on foreign suppliers.
It will draft a Circular Economy Act in 2026 to target 24% recycled material use by 2030.

Why it matters

Despite being the birthplace of the Industrial Revolution, Europe has fallen behind in terms of industry. EU industrial production has dropped off in recent months, while European industries face energy costs up to three times higher than US competitors. Now, this deal has a strategy to deal with it: deep decarbonization, more clean energy infrastructure, and streamlined regulatory onus. It’s a bold bet that clean energy and industrial decarbonization can restore Europe’s global competitiveness.

Notably, it is also stepping up to fill the vacuum left by the US' pullback on climate under President Trump. Trump’s early moves — exiting the Paris Agreement, halting IRA funding, and drafting tariffs — are countered by the Commission’s new Clean Trade and Investment Partnerships — free-trade agreements that support the EU’s strategy with better access to global raw materials, clean energy, and climate tech. Somewhat ironically, though, this deal follows in the footsteps of other industrial polices like the IRA, by moving from penalties to incentives, showing the legacy of the bill.

Key takeaways

Gold standard of reporting (slightly) tarnished. The Clean Industrial Deal aims to lighten the load on businesses with fewer sustainability reporting requirements, to save companies time and money. However, the move to exempt SMEs and delay some compliance checks until 2028 has sparked criticism, with some arguing it could water down corporate accountability on sustainability, although supporters note it keeps 99% of emissions in scope.

The devil’s in the details? The new omnibus reiterates the European Commission’s goals for industrial decarbonization, and provides a broad framework and centralized financial incentives for sectors like hydrogen, steel, and cement. Still, the details, and eventual effectiveness, will be determined by individual member nations, as is typical of this type of EU legislation.

Watch this space. The proposed changes are expected to be passed and enacted into law over the next two years, but they still need approval from the European Parliament and a reinforced majority of the 27 EU member states — leaving plenty of room for adjustments.

Deals of the Week (2/24 - 3/02)

Late-Stage / Growth

⚒️ VerAI Discoveries, a Boston, MA-based aI-based mineral exploration platform, raised $24m in Series B funding from Insight Partners, Blumberg Capital, Chrysalix Venture Capital, and Orion Industrial Ventures.

Early-Stage

🥩 Vivici, a Delft, Netherlands-based animal-free dairy proteins producer, raised $34m in Series A funding from Invest-NL, Stichting Pensioenfonds ABP, Fonterra Co-operative Group, InnovationQuarter, and dsm-firmenich Venturing.

♻️ Claros, a Mclean, VA-based provider of a power management platform optimizing energy delivery and consumption at data centers, raised $10m in Seed funding from Composite Capital Partners, General Catalyst, Red Cell Partners, Virginia Innovation Partnership Corporation, and Virginia Venture Partners.

☔ Adaptive Insurance, an Austin, Texas-based parametric insurance provider, raised $5m in Seed funding from Congruent Ventures, Generation Space, and Montauk Climate.

💨 Mitico, a Los Angeles, CA-based carbon capture solutions service, raised $4m in Seed funding from Exergon, AP Ventures, Alliance SoCal for Innovation, Deepbright Ventures, Freeflow Ventures, and other investors.

🏭 Claros Technologies, a St. Paul, Minn.-based advanced materials company, raised $5m in Series A funding from 3×5 Partners.

🚗 Vidyut, a Bangalore, India-based EV financing platform, raised $3m in Series A funding from Flourish Ventures.

🌱 Karomia, a Gent, Belgium-based double materiality assessment and CSRD reporting software provider, raised $2m in Seed funding from Entourage, Imec.istart, and imec.istart Future Fund.

🌾 Gripp, a West Lafayette, Indiana-based agricultural equipment operation, raised $2m in Pre-Seed funding from Ag Ventures Alliance, C2 Ventures, DMM Holdings (USA), Glen Haven Farms, Infinity Ventures, and other investors.

♻️ Tereform, a Denver, CO-based molecular recycling process developer, raised $1m in Seed funding from Accelr8 and Toyota Ventures.

Other

⚡ Jolt, a Sydney, Australia-based electric vehicle charging stations provider, raised $150m in Debt funding from Canada Infrastructure Bank (CIB).

⚡ Wallbox, a Barcelona, Spain-based residential EV charger manufacturer, raised $10m in Post-IPO equity funding from Inversiones Financieras Perseo and Orilla Asset Management.

Exits

🐄 Ynsect, a Paris, France-based insect-based protein company, announced Bankruptcy / Out of Business.

⚡ National Grid Renewables, a Bloomington, MN-based renewable energy projects developer was acquired by Brookfield Asset Manager at an implied value of $1.7bn.

New Funds

Blackstone, a New York, NY-based investment firm, announced the final closing of its energy transition-focused private equity fund, Blackstone Energy Transition Partners IV, at $5.6bn.

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In the News

In US agency news, farmers and environmental groups are suing the USDA for deleting climate data, arguing it hinders research and agricultural planning. Meanwhile, EPA chief Lee Zeldin announced plans to cut 65% of the agency’s budget, as a federal judge extended a block on Trump’s federal funding freeze, underscoring uncertainty over agency rollbacks.

The SAF market faces turbulence as United Airlines expands its SAF and carbon removal strategy while Southwest Airlines pulls back. United’s Sustainable Flight Fund invested in DAC startup Heirloom, securing 500,000 tons of CO2 removal for fuel production or sequestration, aligning with European SAF mandates. Meanwhile, Southwest is cutting its SAF team and selling SAFFiRE Renewables, reflecting a growing divide between airlines adapting to global climate rules and those focusing on cost control amid weak US regulations.

BP’s recent strategy reset — scaling back low-carbon plans and refocusing on oil — sent shares down 1.4% to a February low amid activist investor pressure. The company will now invest $10bn annually in oil and gas, reversing a planned 25% production cut, while slashing $5bn from low-carbon spending but keeping hydrogen and CCS. The move reflects broader oil major struggles to balance profitability with decarbonization.

Sibanye-Stillwater is exiting its JV with ioneer’s Rhyolite Ridge lithium project, citing an 80% price drop since 2022. Despite a $996M DOE loan, ioneer is struggling to find a new equity partner, raising concerns about US lithium production. With Trump’s policies threatening EV demand and prices still low, the project’s stalled FID signals trouble for America’s battery supply chain.

On the other hand, EV supply chain projects continue to move forward. Japan’s UBE Corporation is building a $500m EV battery material plant in Louisiana, the first US facility for key lithium-ion components (DMC & EMC). Meanwhile, China’s CALB is constructing a €2B ($2.1B) battery plant in Portugal, set to produce 15GWh annually by 2027 for automakers like Toyota, Volkswagen, Ford, and Audi.

In more EV materials news, the DRC has imposed a four-month cobalt export ban to counter an 85% price drop since 2022, but its impact depends on whether major producers cut output or stockpile supply. As the world’s top cobalt supplier, the move could tighten availability, yet weak demand highlights ongoing volatility in EV and battery supply chains.

Pop-up

Drum roll please: Kenya welcomed home 17 mountain bongos from the US, after the rare antelope had become critically endangered.

New CSFE report on fusion power hopes to enable 21st century American nuclear dominance.

The EV battery race is heating up as Mercedes-Benz tests a solid-state battery in a production vehicle with 621 mile range.

Batteries in plastic, it’s fantastic?

Looks like the chance of a giant asteroid hitting Earth in 2032 has cratered to 0.0017%.

Get to know the five most active early stage climate investors.

Coffee prices are brewing at a 50-year high, but it’s bittersweet.

Meet Chonkus, the CO2-chomping alga.

The Atlantic Meridional Overturning Circulation will tide us over into the 22nd century.

The small island nation of Nauru is selling passports to shore up adaptation funds.

Japan is getting down to earth with its first carbon capture site.

Trendlines

Early leaders iron-air and lithium-ion are emerging from a crowded field of LDES contenders.

Opportunities & Events

📅 MIT Energy Conference: Register to attend the MIT Energy Conference from March 3-4th to hear from clean energy experts taking breakthrough climate technologies to market and networking opportunities.

📅 Farmer x Investor Happy Hour: RSVP to attend the Farmer x Investor Happy Hour co-hosted with Trailhead Capital, on March 4th for a Q&A panel with Fractal farmers and small, semi-structured breakout discussions.

📅 SF Blue Tech Happy Hour: RSVP to attend the SF Blue Tech Happy Hour on March 6th for networking opportunities with professionals in the marine carbon dioxide removal (mCDR), seaweed farming, and underwater robotics industries.

💡Boston Climate Leader Awards: Apply to nominate a business, community group, or individual doing exemplary climate work in Boston by March 13th.

📅 MassCEC Clean Energy Career Summit: RSVP to attend the MassCEC Career Summit on March 19th to celebrate the success of the clean energy internship program and and the opportunities that lay ahead.

💡 Energy Fellows Institute 2025 Application: Apply by March 21, 2025, to join a program for energy leaders with deep dives into the energy sector through sessions this spring. Applications are reviewed on a rolling basis.

📅 Women in Climate: Building a Sustainable Future: RSVP to attend the Women in Climate gathering on March 24th at the intersection of Women's History Month x Earth Month, and network with fellow sustainability leaders, climate investors, and B2B tech startups.

💡 Engine Ventures Fellowship: Apply to the Engine Ventures Fellowship for an opportunity to participate in a paid, part-time program for current graduate students and postdocs helping shape the next generation of Tough Tech companies and investments.

Got an event or opportunity for us? Let us know here.