the European Parliament has given its stamp of approval to the Net-Zero Industry Act, aiming to bolster European Union (EU) production in crucial technologies essential for decarbonization.
The Act, previously agreed upon informally with the Council, outlines ambitious targets for Europe to produce 40% of its annual deployment needs in net-zero technologies by 2030, drawing from National Energy and Climate Plans (NECPs). Additionally, the legislation aims to capture 15% of the global market value for these technologies.
Under the Act, various technologies will receive support, including renewables, nuclear, industrial decarbonization, grid infrastructure, energy storage, and biotechnology. Notably, the law seeks to streamline the permitting process, establishing maximum timelines for project authorization based on their scale and output.
One notable provision of the agreement is the establishment of “Net-Zero Acceleration Valleys” initiatives. These initiatives aim to expedite the permitting process by empowering member states to delegate certain aspects of evidence collection for environmental assessments.
Furthermore, the legislation encourages funding from national Emission Trading System (ETS) revenues, as well as through the Strategic Technologies for Europe Platform (STEP) for strategic projects. It marks a significant step toward the creation of a European Sovereignty fund.
Lead MEP Christian Ehler (EPP, DE) hailed the vote as a positive development for European industry, emphasizing its importance in aligning with broader economic, climate, and energy objectives. He remarked, “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.”
