On Thursday, Parliament approved the Net-Zero industry Act to bolster EU production in technologies needed for decarbonisation.
The European Parliament has made a significant stride towards bolstering the EU’s net-zero technology sector, including hydrogen technology, by adopting the Net Zero Industrial Act (NZIA). The legislation, which garnered 361 votes in favor, 121 against, and 45 abstentions, is now poised for final approval by the European Council.
This legislative milestone is set to ensure that 40% of all net-zero equipment, such as electrolysers and fuel cells, are manufactured within Europe. The NZIA aims to strengthen the EU’s position in the global market, targeting a capture of 15% of the worldwide market of these technologies, and comes as a direct countermeasure to the growing influence of non-EU manufacturers, particularly from China.
Key provisions of the NZIA include:
- Streamlined Permitting: The Act will simplify the permitting process, establishing maximum timelines for the authorization of projects based on their scope and output.
- Net-Zero Acceleration Valleys: These designated areas will facilitate the construction of new manufacturing facilities by allowing projects to delegate parts of the evidence collection necessary for environmental assessments to host governments.
- Sustainability and Resilience Criteria: National support schemes will incorporate these criteria, ensuring that technologies like solar panels and heat pumps are deployed swiftly and sustainably.
The Act not only promotes the production of key decarbonization technologies but also implements new criteria for public procurement procedures and auctions for renewable energy sources. This is aligned with the EU’s broader climate and energy objectives, which seek to make the EU internal market fit for industrial decarbonization.
As part of its broader impact, the legislation is expected to expedite the transition to a low-carbon economy by making Europe less dependent on imported technologies for achieving its Green Deal goals. The strategic emphasis on locally produced technologies is seen as crucial for maintaining economic competitiveness and securing technological sovereignty in the face of international competition.
“This vote is good news for European industry and sets the tone for the next term. To achieve all our economic, climate and energy ambitions, we need industry in Europe. This Act is the first step to making our market fit for this purpose”, said lead MEPÂ Christian Ehler (EPP, DE).
Next steps
The legislation was adopted with 361 votes to 121, with 45 abstentions. It will now have to be formally adopted by Council in order to become law.
Background
A considerable amount of clean energy technology is needed to support reaching Europe’s 2030 and 2050 climate targets. Europe largely imports these technologies, and many non-EU countries have stepped up their efforts to expand their clean energy manufacturing capacity.
Conference on the future of Europe
The “Net Zero Industry Act” aligns with the conclusions of the Conference on the Future of Europe through several key proposals and measures.. Specifically, the Act reflects Proposal 3 (measures 1, 3, 5, 6), Proposal 11 (measure 1), Proposal 12 (measure 5), Proposal 17 (measure 1), and Proposal 18 (measure 2), which collectively aim to foster a sustainable, resilient, and independent energy framework within the EU.
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