The Net Zero Industry Act Was Formally Adopted By The EU Council

The Net Zero Industry Act Was Formally Adopted By The EU Council - Carbon Herald
Credit: Sansoen Saengsakaorat | Shutterstock

The Net Zero Industry Act – the initiative aiming to ensure manufacturing capacity for clean technologies in the EU and their scale-up, was officially adopted by the European Council on May 27th at a summit of agriculture ministers in Brussels. 

The new regulation aims to boost EU’s competitiveness in the global race of reaching net zero and ensure favorable conditions in the bloc for investments in clean energy. This is done by setting out targets for green technology production – at least 40% of clean energy technologies needed for the green transition will be manufactured in the EU by 2030.

Relevant: EU Proposes The Net-Zero Industry Act To Scale Up Green Technology Production

Among other measures, the Act also sets an objective for the EU to reach a minimum threshold of injection CO2 capacity in strategic storage sites in the EU by 2030 – 50Mt annually, with proportional contributions from EU oil and gas producers. It also requires governments and the European Commission to ensure a global market share in all key low-carbon technologies of at least 15% by 2040. 

The key technologies that will receive a boost are solar, wind, electrolyzers and fuel cells, batteries and energy storage, heat pumps and geothermal energy, grid technologies, carbon capture and storage, and sustainable biogas/ biomethane. 

The EU Council approval of the legislative act is the last step in the decision-making process. The regulation will be published in the Official Journal of the European Union and will enter into force on the day of its publication after being signed by the President of the European Parliament and the President of the Council,.

Some of the strategic objectives of the EU adopted in the Act for ensuring the manufacturing capacity target will be achieved and for creating investment conditions in those green technologies are:

  • simplifying the permit-granting process for strategic projects;
  • facilitating market access for strategic technology products (in particular in public procurement or the auctioning of renewable energies);
  • enhancing the skills of the European workforce in these sectors (i.e. with net-zero industry academies and high-concentration industrial areas or ‘valleys’);
  • creating a platform to coordinate EU action in this area

Relevant: EU Parliament Approves The Carbon Removal Certification Framework And Net Zero Industry Act

“The net-zero industry act is one of the foundation stones of a new industrial policy. This legal act will help Europe to lead the global race for green technologies and make sure that our contribution to the fight against climate change also reduces our dependencies, reinforces our strategic autonomy and helps us to create growth and jobs in Europe,” commented Jo Brouns, Minister of Flanders for Economy, Innovation, Work, Social Economy and Agriculture.

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