IRIS Highlights - March 2025

European Commission presents an ambitious Clean Industrial Deal to boost competitiveness and decarbonize European industry

REGULATORY NUMBER | EU

The European Commission has presented the Clean Industrial Deal, an ambitious strategy aimed at strengthening the competitiveness and resilience of European industry, while accelerating its decarbonization. The initiative seeks to position the green transition not as a barrier, but as a key driver of industrial growth in Europe.

Faced with high energy costs and often unfair global competition, Brussels is responding with a framework that offers predictability to businesses and guarantees that Europe remains firmly committed to achieving climate neutrality by 2050.

“Demand for clean products has slowed down, and some investments have shifted to other regions. Our deal sends a clear message: Europe remains an attractive place to invest and produce,” said President Ursula von der Leyen. “We want to break the chains that still hold our companies back – from high energy prices to excessive red tape.”

A business plan to decarbonize, reindustrialize, and innovate

The Clean Industrial Deal focuses on two key sectors: energy-intensive industries and clean technologies. The former require urgent support to electrify and reduce emissions, while clean tech development is essential for Europe’s future industrial transformation and competitiveness.

The deal also promotes the circular economy, aiming to optimize the EU's limited resources and reduce dependency on third countries for critical raw materials.
As part of this effort, the Commission has announced targeted action plans for the automotive sector (to be presented in March), as well as for steel, metals, chemicals, and clean technologies in the coming months.

Key pillars of the new industrial approach

1. Affordable energy
The Commission has adopted an Action Plan for Affordable Energy, aiming to reduce energy costs by boosting renewables, accelerating electrification, improving interconnections and using energy more efficiently.

2. Boosting demand for clean products
The Industrial Decarbonization Accelerator Act will introduce sustainability and resilience criteria in public and private procurement. From 2025, a voluntary carbon intensity label will be launched, starting with steel and followed by cement, rewarding manufacturers' decarbonization efforts.

3. Financing the transition
The plan will mobilize over €100 billion in support of EU-based clean manufacturing. Measures include a new State Aid framework, a stronger Innovation Fund, and a proposal for an Industrial Decarbonization Bank.

The European Investment Bank (EIB) will support the deal with new financial tools, including guarantees for grid component manufacturers, support for SMEs entering Power Purchase Agreements (PPAs), and a CleanTech Guarantee Facility under the Tech EU program.

4. Circularity and access to materials
A new EU Critical Raw Materials Centre will facilitate joint purchasing to secure better prices and conditions. In 2026, the Commission will present a Circular Economy Act to ensure 24% of industrial materials are circular by 2030.

5. Acting on a global scale
The EU will launch the first Clean Trade and Investment Partnerships to diversify supply chains and establish balanced trade relations. The Commission will also strengthen trade defense tools and simplify the Carbon Border Adjustment Mechanism (CBAM).

6. Skills and workforce development
A Union of Skills will be created to invest in workers, enhance skills and generate quality jobs. Up to €90 million from Erasmus+ will support training in strategic sectors, while social conditions and worker support will be prioritized throughout the transition.

A deal born from industrial and social dialogue

The Clean Industrial Deal delivers on President von der Leyen’s pledge to present the plan within the first 100 days of the Commission’s mandate. It reflects extensive consultations with industry leaders, trade unions and civil society under the Antwerp Declaration for a European Industrial Deal and the Clean Transition Dialogues.

With this deal, Europe seeks to consolidate its position as a global industrial leader without compromising on climate goals – driving a green transition that is competitive, fair, and inclusive.

The NHTSA to impulse a new program on Autonomous Vehicles

REGULATORY NUMBER | USA

The National Highway Traffic Safety Administration (NHTSA) has proposed the creation of a new program to review and oversee vehicles equipped with Automated Driving Systems (ADS). Called the Automated Vehicle Safety, Transparency, and Evaluation Program (AV STEP), the initiative represents one of the most significant regulatory steps the agency has taken to date in the field of autonomous vehicles.

The program, currently in the regulatory proposal phase, will be open on a voluntary basis to vehicle manufacturers, ADS developers, fleet operators, and system integrators, who will be able to submit their comments until March 17, 2025. 

Voluntary Oversight with Technical and Safety Requirements

Participants will be required to submit detailed information to NHTSA regarding the operation and deployment of their autonomous vehicles, as well as a “safety case” demonstrating that the technology is safe for its intended use. They must also agree to undergo and submit the results of an independent evaluation of both the technological system and the company’s safety management system.

One of the major innovations of AV STEP is that it allows applicants to request exemptions from the Federal Motor Vehicle Safety Standards (FMVSS) through a more streamlined and tailored procedure for these types of vehicles. Acceptance into the program implies that the applicant has followed well-documented engineering processes and has the technical and operational capabilities needed to address safety risks.

However, NHTSA will not issue explicit statements of compliance or validation for autonomous vehicles, and participants will remain subject to the agency’s standard investigation procedures for failures or defects.

The information collected under AV STEP will help enhance the agency’s capabilities for oversight, regulation, and investigation, and will lay the groundwork for potential mandatory regulations in the future.

Toward a Unified Federal Regulatory Framework

The proposal arises amid growing pressure to establish a federal regulatory framework that avoids regulatory fragmentation between states, which could hinder the development of this technology in the U.S. During his confirmation hearing, newly appointed Secretary of Transportation Sean Duffy emphasized the need for “clear rules” instead of a “confusing patchwork” of state regulations.

Key Features of the Program

1. Specific exemptions for ADS-equipped vehicles

The program foresees the creation of specific pathways for obtaining exemptions from FMVSS, tailored to the technical needs of autonomous vehicles. This aims to address the rigidity of the current process, which limits exemptions to 2,500 units and has proven slow and inadequate for vehicles without a steering wheel or pedals, such as those developed by companies like Nuro or General Motors.

2. Mandatory independent evaluations

Applicants must submit an external evaluation justifying that their vehicle is safe. This “safety case” must cover nine areas, including risk management, compliance with traffic laws, human factors, accident prevention, and an assessment of the company’s internal safety culture.

3. Customized final determination letter

Each participant will receive a determination letter outlining the terms and conditions of their participation, including monitoring metrics and details of any exemptions granted. NHTSA emphasizes that this does not constitute a safety endorsement, but rather a confirmation that sound technical and organizational practices have been followed.

4. New transparency and reporting obligations

While technical reports will not be made public, key information will be disclosed, such as the identity of applicants, locations where vehicles are in operation, number of units deployed, reported incidents, and recovery events. Participants will also be required to submit quarterly reports and notifications of changes to the system or its deployment.

Who Can Participate?

The program is intended exclusively for vehicles equipped with ADS capable of fully performing the dynamic driving task without human intervention. Driver assistance systems (ADAS), such as current automatic braking or lane-keeping systems, are excluded.

AV STEP distinguishes between two levels of participation:

Step 1: Vehicles operating under constant supervision by a backup operator.
Step 2: Vehicles capable of operating without direct supervision, with stricter requirements for technological maturity.

Participants may progress from one level to the other as their technologies evolve.

A Key Step Toward Autonomous Vehicle Regulation

AV STEP marks a major advance in the effort to create a modern, flexible regulatory foundation adapted to the technological reality of autonomous vehicles. Although still in the public consultation stage, the program could facilitate the development and commercialization of these vehicles in the United States.

Future mandatory Standard for Combined Driving Assistance Systems

REGULATORY NUMBER | China

China’s Ministry of Industry and Information Technology (MIIT) has announced the development of a new mandatory National Standard (GB) that will define technical requirements for Combined Driver Assistance Systems (CDAS) in M and N category vehicles equipped with assistance functions below Level 3.

The upcoming standard will be based on two UNECE regulations:

• UN R.171 on Driver Control Assistance Systems (DCAS)
• UN R.079 on Steering Equipment

Key areas to be regulated include:

• Driver state monitoring
• Human intervention
• System detection capabilities
• Safety and functional safety requirements

The MIIT expects to officially release the standard in the first half of 2027.

This initiative is part of China’s broader efforts to align its technical standards with international practices, ensure the safety of assistance systems, and lay the groundwork for future regulations on more advanced vehicle automation.

Type-Approval for batteries in South Korea

REGULATORY NUMBER | South Korea

South Korea has distinguished itself with a unique approach to battery certification, diverging from the traditional self-certification practices seen in other markets. In South Korea, companies are not allowed to certify their own batteries independently. Instead, the Ministry of Land, Infrastructure, and Transport (MOLIT) is the sole authority responsible for granting approval, and prior authorization is required before any battery can be commercialized.

This government-controlled system ensures that every battery undergoes an official evaluation and approval process, eliminating the possibility of biased or partial certifications. By maintaining strict oversight, South Korea guarantees the quality and safety of its battery technologies, emphasizing transparency and accountability.

The South Korean certification model represents a direct, hands-on approach to regulating battery technologies, with safety and public trust as top priorities. This regulatory framework sets a high standard for the industry, aligning with global calls for better safety protocols in battery production.

You can find these and other news in our Regulatory Monitoring Report.

• The European Commission presents a plan to boost competitiveness and decarbonization with its "Clean Deal" in the EU.
• New CO2 requirements for commercial and passenger vehicles in EU regulations.
• Advances in Driver Assistance Systems (ADAS) and proposed standards for autonomous vehicles.
• Development of mandatory battery certification in South Korea.
• New proposals on braking systems for heavy vehicles at the UN.
• Revision of safety standards for the transport of hazardous goods in the EU.
• Updates on regulatory developments in Japan, Brazil, Colombia, India, and more.