Written by Guillaume Ragonnaud.
The EU’s Net-Zero Industry Act (NZIA) entered into force on 29 June 2024. Its implementation comes at a critical juncture, where the stakes and challenges facing the European net-zero technologies sector remain as pressing as ever. The NZIA aims to address some of the barriers to the development of the European net-zero manufacturing sector. Numerous third countries are intensifying efforts to expand their clean energy manufacturing capacity, heightening competitive pressure on the EU. With the NZIA, the EU aims to boost its industrial base, strengthen its economic security, and accelerate the clean energy transition.
While net-zero technologies span a wide range of sectors, the NZIA applies specifically to a subset of 19 net-zero technologies. It seeks to reduce the administrative burden on manufacturers by streamlining and accelerating permitting procedures. To this end, it sets up a net-zero regulatory burden scientific advisory group. Some specific net-zero manufacturing projects, recognised as ‘net-zero strategic projects’, will receive additional benefits, including accelerated permitting processes, priority handling in dispute resolution, and advisory support for accessing financing. The NZIA also includes provisions on public procurement for clean technologies and auctions to deploy renewable energy sources, introducing mandatory non-price criteria. The European Commission should support the establishment of European net-zero industry academies to develop skills. Moreover, the NZIA includes provisions to develop permanent geological CO2 storage sites and CO2 transport infrastructure.
The absence of additional dedicated EU funding to support the implementation of the NZIA has drawn significant criticism from numerous stakeholders. Stakeholders have also expressed concerns that the NZIA offers little beyond regulatory streamlining. Some anticipate limited practical application of the provisions on public procurement and auctions. Additionally, the NZIA has been criticised for lacking a strategic focus, as it targets too many technologies simultaneously. Furthermore, some critics worry that accelerating administrative procedures could place additional pressure on local communities and the environment, overburden national public authorities, and exacerbate conflicts at the local level.
Read the complete briefing on ‘Implementing the EU’s Net-Zero Industry Act‘ in the Think Tank pages of the European Parliament.
Comments are closed for this post.