The European Commission has unveiled the EU Clean Industrial Deal and the Action Plan on Affordable Energy to align climate goals with competitiveness. This legislative package targets energy price reduction, support for energy-intensive industries, and advancement of the clean-tech sector. The Institute for Energy Economics and Financial Analysis (IEEFA) appreciates the EU's commitment to decarbonisation by emphasizing cleaner industrial growth centered around clean power technologies. The plan aims to enhance grid flexibility, digitalization, and energy efficiency while cutting red tape and promoting quality jobs in Europe. However, caution is advised against excessive reliance on LNG and carbon capture and storage (CCS) technologies, which might hinder market trends and jeopardize Europe's competitiveness and climate leadership. The EU's Affordable Energy Action Plan is praised for improving energy security coordination among Member States but is warned against investing in overseas LNG projects that could lead to high costs and overdependence on gas. The proposal seeks to separate electricity bills from gas price volatility, promote net zero through state aid measures, and refine the Carbon Border Adjustment Mechanism to incentivize global polluters to lower emissions. To achieve a secure and competitive energy market, the EU aims to diversify energy sources, reduce gas demand, and enhance coordination between Member States for efficient energy infrastructure usage. By prioritizing renewable energy assets and long-term power purchase agreements, the EU intends to stabilize energy costs and attract investments in the clean energy sector. The initiative also anticipates a significant impact on major polluters worldwide through the Carbon Border Adjustment Mechanism, prompting a shift towards lower emissions and new carbon pricing structures globally.