Strong Economy is a Green Economy
To bolster the competitiveness of net-zero technology sector and attract investments in clean technologies, the EU adopted Net-Zero Industry Act. Not only it supports the clean energy transition but also strengthens the EU’s energy independence. The Act sets an ambitious target for net-zero manufacturing capacity to meet at least 40% of the EU’s annual deployment needs by 2030, providing long-term predictability and certainty for business. Additionally, by 2030, it aims to establish a Union market for CO2 storage services.
The list of net-zero technologies includes solar, wind, geothermal, energy storage, hydrogen, biogas, CCS, electricity grid, nuclear, sustainable alternative fuels, wind propulsion, and other renewable energy technologies.
The Role of the Member States
Member States can designate Net-Zero Acceleration Valleys, that is specific areas aimed at accelerating net-zero industrial activities. These Valleys would create clusters of net-zero industrial activity and streamline administrative procedures. Public investments in the Valleys may benefit from maximum co-financing rates under various EU funds.
The Act introduces mandatory rules in public procurement, auctions, and other schemes to boost demand for renewable energy. Sustainability is a minimum mandatory requirement in public procurement, with authorities also considering at least one of the criteria such as social or employment factors, cybersecurity, and timely delivery obligations. Auctions for renewable energy sources must assess sustainability and resilience contributions, whereas the support schemes will incentivize households and businesses to adopt net-zero technology products.
Member States can establish ‘net-zero regulatory sandboxes’ to enable the testing of innovative net-zero technologies in a controlled environment. The Act also establishes Net-Zero Industry Academies, each aiming to train in one net-zero industry technology 100,000 learners within three years of establishment. These will reward ambitious projects, create numerous new jobs and encourage innovative investors.
Go, Business!
Projects recognized as net-zero strategic projects will benefit from priority status, expedited processing, and, where applicable, the Highest National Significance status. These projects are considered to have an overriding public interest, they also benefit from urgent dispute resolution, and a shortened permit-granting process. Additionally, they will receive attention on the Net-Zero Europe Platform for financing advice.
To be recognized as strategic net-zero technology manufacturing projects, they must be located in the Union, contribute to the Union's climate or energy targets, and meet specific criteria, such as enhancing the technological and industrial resilience of the Union's net-zero technologies or having a positive impact on the net-zero industry supply chain. In case of CO2 storage projects, they also must be located within the Union, contribute to an annual injection capacity of at least 50 million tonnes of CO2 by 2030, and have applied for a permit for safe and permanent geological storage of CO2.
Project promoters must submit applications for recognition as net-zero strategic projects to the relevant Member State, including evidence of criteria fulfillment, a business plan evaluating financial viability, and a draft timetable for the project.
Innovative and Competitive Europe
The Net-Zero Industry Act measures will foster a sustainable economy by encouraging innovative investors. They will make ambitious countries more competitive and attracting further investments. Europe will become more independent and resilient, at the same time creating plenty of new green jobs. By offering these opportunities, the EU invites sustainable businesses to co-create an innovative green economy for the safe and prosperous future.
By:
Martyna Szlufik | Senior | Green Tax