The European Parliament has given its green light to the Net-Zero Industry Act, aiming to fortify Europe's production of crucial technologies essential for achieving decarbonisation goals. The Act, which has already received informal approval from the Council, is a significant stride towards reshaping the EU's internal market to align with its climate and energy objectives. 5gx34

Technologies to be ed include all renewable technologies, nuclear, industrial decarbonization, grid, energy storage technologies and biotechnology. For renewables, ed technologies cover a wide range, including solar photovoltaic (PV) modules, wind turbines, batteries, heat pumps and energy storage technologies, among others. The law will simplify the permitting process and establish maximum timeframes for projects to be authorized depending on their scope and results.

Ambitious European targets

The legislation sets an ambitious target for Europe to domestically produce 40% of its annual deployment requirements in net-zero technologies by 2030. This is based on National Energy and Climate Plans (NEs), with an additional goal to capture 15% of the global market value for these technologies.

A key feature of the Act is the streamlining of permitting procedures, with set maximum timelines for project authorisation based on their scale and output. It introduces the concept of "Net-Zero Acceleration Valleys," which will expedite the permitting process by delegating certain environmental assessment responsibilities to member states.

Furthermore, the Act mandates sustainability and resilience criteria for national schemes promoting the adoption of technologies like solar s and heat pumps. Public procurement procedures and auctions for renewable energy sources will also need to adhere to these criteria, ing for a minimum of 30% of the volume auctioned per year in each member state or a maximum of six Gigawatt per year and per country.

Financial

Financial for the Act is expected to come from national Emission Trading System (ETS) revenues and strategic projects through the Strategic Technologies for Europe Platform (STEP), marking a move towards establishing a European Sovereignty fund.

Lead MEP Christian Ehler (EPP, DE) commented, “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.”

The legislation garnered strong in Parliament, securing 361 votes in favor, 121 against, with 45 abstentions. The next phase involves formal adoption by the Council for the Act to become law.

With Europe heavily reliant on imports for its clean energy technology needs, the Act seeks to bolster domestic production, especially as non-EU countries ramp up their clean energy manufacturing capacities.

The Net-Zero Industry Act is in line with the conclusions of the Conference on the Future of Europe, aligning with key proposals and measures aimed at fostering a sustainable, resilient, and independent energy framework within the EU.