Members' Research Service By / May 24, 2023

Net-zero industry act [EU Legislation in Progress][Policy podcast]

In January 2023, the International Energy Agency (IEA) warned that the current global energy crisis represented a pivotal moment for clean energy transitions worldwide.

© Mike Mareen / Adobe Stock

Written by Guillaume Ragonnaud (1st edition).

The required deployment of clean energy technologies to support the achievement of Europe’s 2030 and 2050 climate targets is considerable. Europe already largely imports these technologies, and many third countries have stepped up their efforts to expand their clean energy manufacturing capacity. On 16 March 2023, the Commission put forward a proposal for a ‘net-zero industry act’ that aims to expand the manufacturing capacity of net-zero technologies in the EU and enhance the resilience of its energy system.

The proposed regulation would set up enabling conditions for the manufacturing of 10 net-zero technologies (through streamlined administrative processes and access to regulatory sandboxes and European net-zero industry academies). Eight ‘strategic’ net-zero technologies would gain additional benefits (even shorter administrative processes, facilitated access to markets, and administrative support to access finance). The proposed regulation would aim to ensure that, by 2030, the manufacturing capacity in the EU for these strategic net-zero technologies reaches an overall benchmark of at least 40 % of the EU’s annual deployment needs. It would also set an EU‑level target for annual CO2 injection capacity by 2030 (50 million tonnes).

The proposal is now in the hands of the co-legislators. In the European Parliament, the Committee on Industry, Research and Energy (ITRE) is responsible for the file.


Proposal for a regulation of the European Parliament and of the Council on establishing a framework of measures for strengthening Europe’s net-zero technology products manufacturing ecosystem (Net Zero Industry Act)
Committee responsible:Committee on Industry, Research and Energy (ITRE)COM(2023)161
Rapporteur:Christian Ehler (EPP, Germany)2023/0081(COD)
Shadow rapporteurs:Tsvetelina Penkova (S&D, Bulgaria)
Christophe Grudler (Renew, France)
Damien Carême (Greens/EFA, France)
Evžen Tošenovský (ECR, Czechia)
Paolo Borchia (ID, Italy)
Marc Botenga (The Left, Belgium)
Ordinary legislative procedure (COD)
(Parliament and Council on equal footing
– formerly ‘co-decision’)

Next steps expected: Publication of draft report

EU legislation in progress

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