EU governments have formally approved a new law designed to increase the production of solar panels, wind turbines, heat pumps and other clean technology equipment within the bloc.
The Net Zero Industry Act (NZIA) aims to ensure the EU produces 40% of its clean tech needs domestically and strengthens its industry against US and Chinese competition.
The NZIA will come into force next month or early July, following its signing by the presidents of the European Parliament and the Council and its publication in the EU’s official journal.
European Commission President Ursula von der Leyen stated that the NZIA provides a regulatory framework to quickly scale up clean technology manufacturing, helping the EU meet its net zero targets by 2050.
The Act is expected to reduce dependency on external technology and make the EU’s energy system cleaner and more secure.
The main measures of the NZIA include setting a benchmark for the EU to produce at least 40% of its annual clean tech needs by 2030.
This benchmark aims to provide predictability for manufacturers and investors and support progress tracking.
The Act also targets an annual injection capacity of 50 million tonnes in EU geological CO2 storage sites by 2030.
The NZIA will simplify and accelerate permitting procedures, reduce administrative burdens, and improve market access to facilitate investment in net zero technologies.
Public procurements for clean technologies will have to consider sustainability, resilience and cybersecurity.
Energy-intensive industries, such as steel, chemicals and cement, can also benefit from the Act if they invest in decarbonisation.
The creation of Net Zero Acceleration Valleys aims to establish clusters of net zero industrial activity within the EU.
