US progress on clean tech is losing momentum as the EU surges forward with an evolving policy playbook

Europe is writing the playbook for clean industrial growth, while America risks squandering its clean-tech moment. Policy whiplash and reversals in the US are dulling business prospects and eroding consumer confidence – especially in the eyes of international markets. The EU, by contrast, is surging ahead on the back of a playbook for clean growth that is helping to mobilize investment, unlock innovation and drive changes in corporate activity.

The question now is whether US companies can out-innovate the emerging policy gap and respond to changes in the commercial environment, at a time when EU frameworks have made technology diplomacy, value-chain engagement and ecosystem leadership increasingly critical dimensions of business leadership.

Europe forges ahead

The Clean Industrial Deal (CID) – the EU’s flagship effort to accelerate clean-technology investment – is set to mobilize over €100 billion to boost domestic growth, cut energy costs and rebalance value chains. A response to geopolitical turbulence and shifting industrial policies, it aims to move Europe beyond playing catch-up with the US, where clean-tech investment rose from $111 billion in 2020 to $271 billion in 2024.

In parallel, large EU companies have begun reporting under the Corporate Sustainability Reporting Directive (CSRD), which has a scope that extends beyond climate impacts to value-chain analysis, stakeholder engagement, and business conduct, anchored in higher-level standards covering governance, strategy, business models, and material impacts, risks, and opportunities. Though some view these requirements as onerous, they are creating incentives for innovation-led growth – with opportunities to improve circularity, scale technologies, and deepen stakeholder engagement.

The leadership mandate is clear: widen the lens, raise standards and prepare for greater responsibilities. As leading companies demonstrate, a new approach is taking shape.

Tackling circularity Denmark’s Ørsted is Europe’s largest wind-power company (and the developer behind the $1.5 billion Revolution Wind project off Rhode Island, which recently received a controversial stop-work order from the US government). Ørsted’s CSRD reporting now accounts for upstream and downstream activities, with raw-material use and waste management treated as strategic considerations. Reducing virgin inputs, extending resource life, and recirculating end-of-life materials have become integral to core operations.

France’s Airbus shows similar momentum. In its CSRD-focused reporting, nearly three-quarters of its waste is attributed to industrial operations – metallic, chemical and packaging streams. Its heavy reliance on titanium, a critical raw material, now receives board-level attention. In the past, such matters were left to operational teams; today, reporting requirements mean they sit firmly on the agendas of senior leaders and boards.

Scaling technologies The push to invest in advanced clean technologies is also intensifying. Ørsted has introduced heavy-lift cargo drones to reduce greenhouse gas emissions from offshore operations, slashing delivery times to turbine nacelles to just four minutes, compared to as much as six hours using shipping vessels – improving productivity by a factor of 10 to 15 while also reducing emissions. Such efficiency gains, extending from operations to carbon performance, deliver a clear competitive edge.

Airbus is also scaling its investment in innovation. The company has committed €6 billion to research and technology, aiming both to realize efficiencies in existing systems and to develop emerging technologies, such as sustainable aviation fuels, hydrogen power, and new energy storage and distribution solutions. Airbus regards continuous technological advancement as critical to its long-term growth.

Stakeholder engagement CSRD has also sharpened the focus on stakeholder engagement. Ørsted’s reporting clearly identifies the importance of political support and constructive dialogue with authorities, suppliers, investors and joint-venture partners. For Airbus, stakeholder engagement spans 355 operational sites and more than 30,000 supplier locations; the transparency and performance of supply-chain partners now feed directly into enterprise risk assessments. Supplier practices are no longer peripheral: they shape risk, resilience, and brand reputation at the enterprise level, and they must be reported.

Lessons for leaders

Developments at Ørsted and Airbus are not occurring in isolation. Companies across sectors are reshaping their practices to adapt to the EU’s evolving policy environment. While the EU excels at crafting innovative policy and legislative frameworks, execution remains a challenge; however, it is leveraging geopolitical shifts to accelerate implementation.

The trajectory is clear: the race to a cleaner industrial future is already underway. For boards and executives, three lessons stand out.

  1. Technology diplomacy Leaders must invest in technology diplomacy. Amid heightened geopolitical competition, private sector leaders should inform policy thinking and champion open diplomatic channels for technological advancement. Effective cross-border technology transfer is now essential. The €4.1 billion collaboration between China’s CATL and Spain’s Stellantis on lithium battery technology demonstrates the scale of commitment required. Building local capacity is vital, but so is deepening competitive advantage in emerging areas, such as battery recycling.
  2. Value-chain engagement Leaders must look beyond internal operations. As EU-based companies are assessed on upstream and downstream impacts, their suppliers – whether within the EU, or in the US, Asia, or elsewhere – face the same pressure. Companies that fail to adapt will be excluded from value chains that demand accountability. For the EU, outward engagement is a consistent strategy. Even when facing protectionist regimes, European companies will continue to rely on global partnerships, with a modus operandi focused on scale: those partnerships will, however, be subject to stronger standards.
  3. Ecosystem leadership Leaders must think at the level of ecosystems, not just enterprises. Policy innovations, such as the CID, will push companies to demonstrate collaboration beyond traditional organizational boundaries. The Airbus Hydrogen Network includes over 215 airports alongside energy providers and airline partners. This is the future of leadership, where commercial viability is harmoniously paired with environmental alignment; success is driven through collective ecosystems rather than isolated companies.

The implications are clear. New EU policies bring sharper reporting standards, greater responsibilities for leadership, and heightened accountability for boards. They also demand sustained investment in clean technologies and value chain resilience. Resilience remains important, but it is no longer enough. Leadership in this environment requires boldness and courage: investing in technology diplomacy, rethinking value chain responsibilities, and building ecosystems that can succeed in a low-carbon world.