From Green Deal to Clean Industrial Deal in Europe

What’s Next for CSRD, ESRS, Regulations, and Sustainable Innovation in Filtration?

In February 2025, the European Commission introduced the European Clean Industrial Deal, a major new initiative that builds on the Green Deal by shifting focus toward sustainable industrial growth and competitiveness. Closely linked to the September 2024 Draghi Report on strengthening Europe’s global position, this strategy responds to the urgent need for more innovative, more resilient industrial policies. For sectors like filtration and nonwovens – at the crossroads of clean technology, environmental protection, and industrial manufacturing – it presents both significant challenges and exciting new opportunities for innovation and leadership.

Why did Europe shift from the Green Deal to the Clean Industrial Deal? Although the Green Deal implemented over 150 measures to reduce emissions and expedite the energy transition, it did not establish a solid industrial policy. The Clean Industrial Deal fills this gap by focusing on sustainable growth, industrial resilience, and competitiveness, especially in light of recent economic and geopolitical pressures such as inflation, energy insecurity, and shifting global trade dynamics. It is built on five key pillars: affordable clean energy, green public procurement, circular economy and resource efficiency, industrial finance and innovation, and regulatory simplification and skills development. The message is clear and forward-looking at its core: Sustainability is not a cost but a key driver of longterm competitiveness and industrial strength.

Philippe Wijns is Principal at CleverSustainability, and serves as a Filtration Expert and Sustainable Business Development Advisor. He is a Certified Expert in Sustainable Finance, Climate Finance, and Renewable Energy from the Frankfurt School of Finance and Management. He began with global leaders in the nonwovens industry before transitioning to the filtration sector, where he specialized in filtration technologies across a wide range of applications and markets – including industrial and automotive systems, HVAC, household appliances, medical and life sciences, as well as power storage solutions such as fuel cells, hydrogen systems, and battery separators.

Wijns recently founded CleverSustainability, a consultancy dedicated to sustainable business development to help companies develop and implement sustainability strategies, ensure compliance with the EU legal reporting requirements, and enhance their sustainable business growth, product portfolio and development, and market positioning.

The Clean Industrial Deal brings both relief and fresh opportunities for filtration companies operating in or trading with the EU. Many small and midsized firms will no longer be directly bound by heavy regulations like the CSRD (Corporate Sustainability Reporting Directive) or CSDDD (Corporate Sustainability Due Diligence Directive). However, this does not mean that sustainability can be ignored.

Larger clients – especially OEMs in automotive, pharma, HVAC, and food processing – remain under reporting obligations. They will continue to demand detailed ESG data from their suppliers, including Scope 3 emissions, carbon footprint per product, lifecycle assessments, and material origin. For example, a HEPA filter supplier to a pharmaceutical cleanroom operator may be asked to prove how their product affects the client’s overall emissions or waste reduction targets. A nonwoven producer supplying cabin air filters for an automotive brand will likely be asked to document their media’s recyclability or carbon intensity – especially as many OEMs integrate these into their product-level environmental declarations.

Continuing voluntary ESG reporting is not only wise for reputation and customer trust but increasingly necessary for staying in supply chains. ESRS topics most relevant to the filtration industry include: ESRS E1 – Climate Change, which requires reporting on greenhouse gas emissions (including Scope 3), energy use, and transition plans, highly relevant to filter production processes and product design; ESRS E2 – Pollution, which covers air, water, and soil pollution and links directly to the role filters play in capturing pollutants and how production processes manage emissions and waste; ESRS E5 – Resource Use and Circular Economy, crucial for filtration as it addresses the use of virgin vs. recycled materials, product durability, repairability, modularity, and recyclability; ESRS S2 – Workers in the Value Chain, with growing importance on responsible sourcing and working conditions in raw material supply chains, such as those involving polymers or activated carbon; and ESRS G1 – Business Conduct, which includes ethics, compliance, and sourcing practices, especially important for companies importing filter components or chemicals from outside the EU.

Filtration companies that design biodegradable filters, use renewable or traceable raw materials, or integrate innovative features for monitoring usage and replacement can apply for these funds and receive preferential treatment in public tenders. For instance, a filtration company developing a sensor-equipped HVAC filter that alerts users when it needs replacing – made from compostable nonwovens – would be well aligned with EU funding priorities and evolving customer expectations. In short, even with relaxed regulations for smaller players, the market pressure to become greener, smarter, and more transparent is only increasing.

The Clean Industrial Deal also makes the circular economy more critical in the EU. A new law will push companies to create products that are easier to recycle and better designed for the environment. For filtration companies, this means using one type of material (mono-material), making filters with parts that can be reused or replaced, and using biodegradable materials. Filters used in buildings, vehicles, and cleanrooms must meet these new expectations. Some companies are already working on compostable filters, reusable frames, and smart filters. These changes help reduce waste, lower costs, and support Europe’s resource-saving goals.

Buyers – both public and private – are becoming more selective. Public procurement now favors low carbon, locally made products and sustainable supply chains, giving an edge to filtration companies producing in Europe with certified materials. Private buyers like car and pharma companies also ask for carbon footprint data, energy use, and recyclability. Suppliers who support their clients’ climate goals are more likely to win business – even at a higher price.

Competitive differentiation means using sustainability to stand out–not just to comply with rules. Filtration companies can gain an edge by developing eco-friendly products, adding smart monitoring features, sharing precise ESG data, and helping customers reach their net-zero goals. This turns them into valuable long-term partners, not just suppliers.

Filtration companies should act now to make the most of the Clean Industrial Deal. First, check if the new CSRD rules apply to you. Even if not, continue voluntary ESG reporting to show you’re a reliable partner. Invest in innovation using recyclable materials and energy-saving designs and explore EU funding options. Review your operations to find ways to save energy and reduce waste. Train your team in eco-design and digital tools. Finally, get involved in industry groups like EDANA or Inda to help shape future rules.

Digital tools and AI are creating new opportunities for filtration companies. Smart factories can now use real-time monitoring to track energy use, material waste, and machine efficiency, helping to reduce costs and improve ESG performance. AI is also being used in eco-design and engineering, making it easier to design filters that use fewer resources, last longer, and are easier to recycle. These technologies support better planning, reporting, and innovation. EU funding is available to help companies adopt these tools. Digital Product Passports (DPPs), coming soon, will show how products are made, used, and recycled–boosting transparency and customer trust. Companies that advance in digitalization and AI will gain a strong market advantage.

For global filtration companies active in Europe and non-European companies looking to enter or manufacture in the EU, the Clean Industrial Deal sends a clear signal: Aligning with EU sustainability goals is not just expected; it’s a smart business move. While the regulatory pressure is easing, expectations from European customers, public buyers, and investors remain high. Companies offering low-carbon, recyclable, and responsibly sourced filtration solutions will have a strong advantage. Foreign firms setting up in Europe can benefit from funding, access to skilled workers, and participation in a growing clean-tech market. By meeting EU standards early and embracing digital tools and eco-design, global players can strengthen their position and become trusted partners in Europe’s clean industrial future.