EU approves Net Zero Industry Act to support clean technology manufacturing

European Union governments have formally approved landmark legislation aimed at strengthening the EU’s capacity to produce clean technologies. The Net Zero Industry Act (NZIA) approved on Monday sets new targets for the EU to produce 40% of solar panels, wind turbines, heat pumps and other clean technology equipment domestically by 2030, helping European industries compete cooperate more effectively with their counterparts in the US and China.

NZIA is at the heart of the EU’s strategy to maintain leadership in reducing greenhouse gas emissions and producing the technologies needed to support this transformation. Europe is currently highly dependent on China, which is estimated to control 80% of the world’s solar energy production capacity. In addition, the EU faces the challenge of $369 billion in green subsidies under the US Inflation Control Act, which could prompt European producers to relocate operations across the Atlantic.

The new rules will enter into force at the beginning of July, after being formally signed by the Presidents of the European Parliament and the Council and published in the Official Journal of the EU.

To fulfill your goalsThe EU has set a target of producing 40% of the products needed to reduce greenhouse gas emissions by 2030. This covers a wide range of technologies, including renewable energy sources, nuclear energy, heat pumps, electrolysers and carbon capture and storage systems. Moreover, the bloc aims to achieve 15% of global production of these technologies by 2040.

The NZIA also includes provisions to streamline the permitting process for projects that expand the EU’s production capacity. Under the new law, most permits will have to be issued within six to nine months, speeding up the development and implementation of clean technology projects.

Source: Reuters