The European Council today announced that it has approved the Net-Zero industry Act (NZIA), a new law introducing a framework of measures aimed at increasing European manufacturing capacity for technologies key to achieving the EU’s climate goals.
The announcement marks the latest major step in the adoption of the NZIA after the European Parliament approved the new regulations in April.
The NZIA was originally proposed by the European Commission in March 2023 and formed one of the key elements of its Green Deal industrial plan strategy to increase the competitiveness of Europe’s net-zero industries and support the EU’s transition to climate neutrality.
According to the EU Commission, the NZIA was launched because Europe is currently importing the technologies necessary to meet its climate and energy goals, and because major government initiatives are heating up globally to gain a share of the fast-growing market to facilitate the transition to net-zero . He kicked off the race with the passage of the American Inflation Reduction Act, which allocated nearly $270 billion through a series of tax breaks, loans, grants and subsidies to areas including renewable energy and industrial decarbonization solutions.
European Commission President Ursula von der Leyen said:
“With the Net-Zero Industry Act, the EU now has a regulatory environment that allows us to rapidly expand clean technology production. The law creates the best conditions for those sectors that are crucial for us to reach net zero by 2050. Demand is growing in Europe and globally, and we are now equipped to meet more of that demand with European supply.”
Key measures of the NZIA include benchmarks for the EU to produce at least 40% of its annual needs by 2030 deploying technologies necessary to meet the EU’s climate and energy targets, such as solar panels, wind turbines, batteries and heat pumps, and to obtain 15% of global market values of technologies by 2040.
Thierry Breton, Commissioner for the Internal Market, said:
“With the Net Zero Industry Act, the EU aims to be a leader in the emerging clean technology market – for our climate neutrality, but also for Europe’s competitiveness, jobs, energy security and economic and political resilience. NZIA has set ambitious goals to multiply our clean technology production capacity by 2030. Because without industrial production, we risk becoming net importers, losing jobs and re-creating dependencies that we do not want to reproduce after the experience with Russian gas.”
The new legislation supports a wide range of specific technologies, from solar PV and thermal, onshore and offshore renewables and batteries and storage to heat pumps and geothermal, electrolyzers and fuel cells, biogas/biomethane, carbon capture and storage (CCS) , nuclear power and grid technology, and details a number of targeted measures to support their development in the EU, including streamlining permitting processes and introducing sustainability and resilience criteria in public procurement and auctions, as well as setting up a “Net-Zero Industry Academy” to support the development of a clean labor force with zero qualifications. NZIA has also set a target of 50 million tonnes of annual CO2 injection capacity in EU geological repositories by 2030.
The new law also includes measures to support investment in workforce training and education through the establishment of Net-Zero Industry Academies, along with a goal to train 100,000 workers within three years, and calls for the creation of “regulatory sandboxes” to test innovative net-zero technologies under flexible regulatory frameworks. conditions.
In addition, NZIA calls for the creation of zero-acceleration “valleys” or areas concentrating several companies involved in specific technologies to create clusters of network-focused industrial activity.
Kadri Simson, Commissioner for Energy, said:
“With the Net-Zero Industry Act, Europe will be well equipped with a stronger industrial base to achieve the clean energy transition. Through easier and faster authorization of manufacturing projects, support for innovation and skills, and better market access for high-quality cleantech products, we will ensure that European cleantech producers can compete on a level playing field.