The European Union will put so-called “green steel” at the center of its efforts to revive the continent’s industry, amid pressure from the United States and China to remain competitive, Bloomberg reports.

The European Commission will try to stimulate the adoption of low-carbon steel by introducing voluntary certification programs and creating new sources of demand via public procurement and the automotive sector, as part of the Industrial Acceleration Act, which is due to be adopted next week, according to a draft document seen by Bloomberg, according to Agerpres.

Under the document, steel will be classified according to the emissions generated during its manufacture, with exact thresholds to be established later. Member state governments will be required to ensure that 25% of the steel used in public procurement and subsidy programs is low-carbon. The use of steel scrap and electric arc furnaces, or green hydrogen, are seen as key decarbonization technologies for the sector.

The bloc will apply similar rules to aluminum and cement, Bloomberg reported.

“Among energy-intensive industries, steel and cement are priority sectors, as they are the largest emitters and together account for more than 6% of the EU’s annual greenhouse gas emissions,” the draft document, which is subject to change, said. To avoid the risk of deindustrialization, “demand-side low-carbon measures should be combined with EU origin requirements to adequately support the transition of these industries,” the document said.

The promotion of low-carbon steel comes as the EU tries to halt a decline in the industrial sector, which it blames on high energy costs, excessive regulations and cheap imports. The Industrial Acceleration Act, also known as the “Made in Europe” law, will aim to ensure that manufacturing accounts for 20% of Europe’s economic growth by 2035.

The law will propose a series of new conditions to ensure that local companies are given priority when member states and foreign firms make investment decisions in the region, Bloomberg previously reported.

According to the latest draft document, the “made in Europe” criteria will include production in the 27 EU member states, as well as from “trusted partners,” such as third countries that have free trade agreements with the bloc and are considered to be in line with the EU’s security and resilience goals.