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Net-Zero Industry Act: EU Reaches Provisional Agreement

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The law sets out for the Union to domestically produce 40 percent of its annual deployment needs in net-zero technologies by 2030.

Yesterday, European Council, Parliament, and Commission representatives held the final trilogue on the Net-Zero Industry Act (NZIA) proposed last year (PDF) and reached a provisional agreement to establish the necessary framework. As part of the Green Deal Industrial Plan, the EU aims to scale up the domestic production of key technologies like solar panels, wind turbines, and heat pumps under the NZIA. The struck deal supports the main objectives of the NZIA, namely boosting the domestic production of clean technologies and capturing 15 percent of the global market of these technologies, while introducing several improvements, such as streamlined rules on construction permit procedures and more clarity on criteria for public procurement and auctioning, according to a press statement.

In a press conference following the reached agreement, Christian Ehler, rapporteur on the Net-Zero Industry Act trilogue negotiations, praised the deal as the first step in making Europe ready to reach its climate goals. However, Ehler added that the institutions acknowledge the need for secure and stable supply chains to achieve successful European manufacturing. To tackle this, the agreement also requires the supply of clean technologies to the EU to be diversified, while safeguarding sufficient flexibility for contracting authorities.

The provisional agreement must now be endorsed and formally adopted by the institutions.

Photo: iStock/Airubon

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