Proposal for a Regulation on establishing a framework of measures for strengthening Europe’s net-zero technology products manufacturing ecosystem (Net Zero Industry Act)

Summary:

Legislative initiative tabled by the European Commission on 16 March 2023, seeking to scale up manufacturing of clean technologies in the European Union (EU) and make sure the EU is well-equipped for the clean-energy transition. This is also known as the draft Net Zero Industry Act. This is a text with EEA relevance.

Further information:

The transition to a climate neutral, clean economy and the corresponding overhaul of the energy system present opportunities in terms of developing the net-zero technology sectors and creating quality jobs and growth. Partners and competitors of the European Union have grasped this opportunity and have started deploying measures to secure significant parts of this new market. These developments have also been driven by security of supply considerations.

In this context, the European Commission's Green Deal Industrial Plan presented a strategy for enhancing the competitiveness of the EU's net-zero industry and supporting the fast transition to climate neutrality. The plan is articulated around four main pillars: a predictable and simplified regulatory environment, faster access to funding, enhancing skills and open trade for resilient supply chains.

This draft law delivers on part of the actions set out in the strategy. It seeks to simplify the regulatory framework, and improve the investment environment for the EU's manufacturing capacity of technologies that are key to meet the EU's climate neutrality goals and ensure that the energy system is resilient whilst contributing to reducing pollution. It was adopted by the European Commission on 16 March 2023. The plenary of the European Parliament endorsed a negotiating position for this proposal on 21 November. The Council of the European Union adopted its general approach to it on 7 December. An informal agreement between the co-legislators on a compromise text for this file was reached on 6 February 2024.

• Primary Source

Commentary and Analysis

Bruegel: First Glance, 09/03/2023: The EU Net Zero Industry Act and the risk of reviving past failures https://www.bruegel.org/first-glance/eu-net-zero-industry-act-and-risk-reviving-past-failures

EurActiv: Opinion, 14/03/2023: A transatlantic opening on green industrial policy? https://www.euractiv.com/section/energy-environment/opinion/a-transatlantic-opening-on-green-industrial-policy/

International Association of Oil and Gas Producers (IOGP Europe): News, 16/03/2023: Net-Zero Industry Act marks a step change in industrial and climate policy – EU paves way for carbon capture and storage scale-up https://iogpeurope.org/news/net-zero-industry-act-marks-a-step-change-in-industrial-and-climate-policy-eu-paves-way-for-carbon-capture-and-storage-scale-up/

Politico, 16/03/2023: The great EU subsidy shakedown https://www.politico.eu/article/the-great-eu-subsidy-shakedown-us-eu-biden-vw-volvo-brussels-eu-summit-tesla-niklas-wahlberg-chinese-firms-thomas-schmall-geert-bourgeois-european-peoples-party/

European Automobile Manufacturers’ Association (ACEA): News, 17/03/2023: Net-Zero Industry Act and Critical Raw Materials Act: proposals welcomed but questions remain https://www.acea.auto/news/net-zero-industry-act-and-critical-raw-materials-act-proposals-welcomed-but-questions-remain/

Friedrich Ebert Foundation (FES): News, 30/03/2023: The key provisions in the EU’s Net Zero Industry Act https://justclimate.fes.de/e/key-provisions-eus-net-zero-industry-act

Clifford Chance: Briefings, 24/04/2023: The European Net Zero Industry Act https://www.cliffordchance.com/briefings/2023/04/the-european-net-zero-industry-act.html

Association of European Chambers of Commerce and Industry (Eurochambres), 02/05/2023: Position on Net Zero Industry Act https://www.eurochambres.eu/wp-content/uploads/2023/05/230502-Eurochambres-position-on-Net-Zero-Industry-Act.pdf

Transport & Environment: Discover, 04/05/2023: How the EU can get its Net Zero Industrial Act right https://www.transportenvironment.org/discover/how-the-eu-can-get-its-net-zero-industrial-act-right/

Confederation of Swedish Enterprise: Article, 11/05/2023: Confederation of Swedish Enterprise’s input on the EU Net-Zero Industry Act https://www.svensktnaringsliv.se/english/confederation-of-swedish-enterprises-input-on-the-eu-net-zero-ind_1199491.html

Confederation of European Paper Industries (CEPI), 11/05/2023: Energy-intensive industries: The Net Zero Industry Act requires a full value chain approach https://www.cepi.org/energy-intensive-industries-the-net-zero-industry-act-requires-a-full-value-chain-approach/

Centre for European Policy Studies (CEPS): Commentary, 24/05/2023: An industrious initiative, yet the Net-Zero Industry Act won’t end concerns about cleantech cash https://www.ceps.eu/an-industrious-initiative-yet-the-net-zero-industry-act-wont-end-concerns-about-cleantech-cash/

Federation of German Industries (BDI): News, 26/05/2023: Net-Zero Industry Act - is this how Europe is preparing for the energy transition? https://english.bdi.eu/article/news/net-zero-industry-act-is-this-how-europe-is-preparing-for-the-energy-transition

Allen & Overy: Blog, 08/06/2023: Boosting EU clean technologies: EC proposes Net Zero Industry Act https://blog.allenovery.com/aoblog/homenl/boosting-eu-clean-technologies-ec-proposes-net-zero-industry-act

European Association for Storage of Energy (EASE): News, 14/06/2023: Net-Zero Industry Act: Our joint reaction in response to Mr. Ehler’s report https://ease-storage.eu/news/joint-reaction-to-the-ep-itre-report-on-the-net-zero-industry-act/

DLA Piper: Environment, Health & Safety and Product Compliance Blog, 19/06/2023: Net Zero Industry Act. EU Support of Net Zero Development https://www.dlapiper.com/en/insights/blogs/environment-health-safety-and-product-compliance/2023/net-zero-industry-act-eu-support-of-net-zero-development

Bruegel: Policy Brief No 15/23, 22/06/2023: Rebooting the European Union’s Net Zero Industry Act https://www.bruegel.org/policy-brief/rebooting-european-unions-net-zero-industry-act

European Parliamentary Research Service (EPRS): Policy Podcast, 06/07/2023: Net-Zero Industry Act https://www.youtube.com/watch?v=bP0aAArAHDI

World Wide Fund for Nature (WWF), 25/10/2023: Industry Committee loses focus on Net Zero Industry Act https://www.wwf.eu/?12085416/pr-itre-vote-nzia

European Parliamentary Research Service (EPRS): Briefing, 09/11/2023: Net-zero industry act https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI(2023)747903

European Parliamentary Research Service (EPRS): At a Glance, 15/11/2023: Net-zero industry act https://www.europarl.europa.eu/thinktank/en/document/EPRS_ATA(2023)754584

World Wide Fund for Nature (WWF), 21/11/2023: European Parliament fails to keep Net Zero Industry Act focused https://www.wwf.eu/?12265441/NZIA-plenary-PR

European Environmental Bureau (EEB): Press Release, 21/11/2023: European Parliament unravels net-zero industrial policy with costly giveaways and a new attack on nature https://eeb.org/european-parliament-unravels-net-zero-industrial-policy/

European Trade Union Confederation (ETUC): Press Release, 21/11/2023: Net-Zero Industry Act: Europe risks falling behind US on social standards https://www.etuc.org/en/pressrelease/net-zero-industry-act-europe-risks-falling-behind-us-social-standards

Airlines for Europe (A4E): Position Paper, 11/12/2023: Net Zero Industry Act (NZIA): An Industrial Plan for Sustainable Fuels for European Aviation https://a4e.eu/publications/net-zero-industry-act-nzia-an-industrial-plan-for-sustainable-fuels-for-european-aviation/

European Environmental Bureau (EEB): Press Release, 06/02/2024: EU promotes costly, unproven technologies on final net-zero industry plan https://eeb.org/eu-promotes-costly-unproven-technologies-on-final-net-zero-industry-plan/

European Association of Automotive Suppliers (CLEPA): Mediaroom, 07/02/2024: Net-Zero Industry Act is first step, but EU industrial strategy will need to foster innovation across technologies https://clepa.eu/mediaroom/net-zero-industry-act-is-first-step-but-eu-industrial-strategy-will-need-to-foster-innovation/

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News

EurActiv, 07/03/2023: The ‘Buy European’ clauses in the Net-Zero Industry Act https://www.euractiv.com/section/economy-jobs/news/the-buy-european-clauses-in-the-net-zero-industry-act/

Deutsche Welle, 09/03/2023: EU and US eye way ahead on green subsidies tiff https://p.dw.com/p/4OShE

Politico, 16/03/2023: Commission releases Net-Zero Industry Act https://www.politico.eu/article/commission-releases-net-zero-industry-act/

Reuters, 16/03/2023: EU announces plans to lead green industrial revolution https://www.reuters.com/business/sustainable-business/eu-unveil-plans-leadership-green-industrial-revolution-2023-03-16/

Politico, 16/03/2023: Defiant France to continue push for ‘all’ nuclear tech in EU Net-Zero Industry Act https://www.politico.eu/article/defiant-france-to-continue-push-for-all-nuclear-tech-in-eu-net-zero-industry-act/

EurActiv, 17/03/2023: EU’s Net-Zero Industry Act aims to bring home clean tech production https://www.euractiv.com/section/energy-environment/news/eus-net-zero-industry-act-aims-to-bring-home-clean-tech-production/

EurActiv, 17/03/2023: EU’s Net-Zero Industry Act sends ‘positive signal’ for nuclear, advocates say https://www.euractiv.com/section/energy-environment/news/eus-net-zero-industry-act-sends-positive-signal-for-nuclear-advocates-say/

EurActiv: Opinion, 28/06/2023: Rebooting the European Union’s Net-Zero Industry Act https://www.euractiv.com/section/energy-environment/opinion/rebooting-the-european-unions-net-zero-industry-act/

Politico, 21/11/2023: Starting from behind: EU vies to gain ground in green tech race https://www.politico.eu/article/net-zero-industry-act-clean-technology-climate-change-european-union/

Science Business, 07/12/2023: Negotiations on EU’s net-zero industry act to start next week https://sciencebusiness.net/news/green-technology/negotiations-eus-net-zero-industry-act-start-next-week

Science Business, 16/01/2024: EU Parliament edges forward deal on Net Zero Industry Act https://sciencebusiness.net/news/green-technology/eu-parliament-edges-forward-deal-net-zero-industry-act

Reuters, 06/02/2024: EU agrees path to compete in clean tech production https://www.reuters.com/sustainability/climate-energy/eu-aims-agree-key-path-towards-green-industry-ambitions-2024-02-06/

Politico, 06/02/2024: EU finalizes green tech bill, responding to US effort https://www.politico.eu/article/europe-net-zero-industry-act-climate-change-green-technology/

EurActiv, 07/02/2024: EU agrees law to boost green industry at home https://www.euractiv.com/section/politics/news/eu-readies-law-to-boost-green-industry-at-home/

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Official

European Parliament: Legislative Observatory: Procedure File for Proposal on Framework of measures for strengthening Europe’s net-zero technology products manufacturing ecosystem (Net Zero Industry Act) (2023/0081(COD)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?reference=2023/0081(COD)

European Parliament: Legislative Train Schedule: Net-zero industry act https://www.europarl.europa.eu/legislative-train/theme-a-europe-fit-for-the-digital-age/file-net-zero-industry-act

General Secretariat of the Council (EU): Policies: EU industrial policy https://www.consilium.europa.eu/en/policies/eu-industrial-policy/

European Commission: Strategy and Policy: Net-Zero Industry Act https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal/green-deal-industrial-plan/net-zero-industry-act_en

European Commission: Press Release, 16/03/2023: Net-Zero Industry Act: Making the EU the home of clean technologies manufacturing and green jobs https://ec.europa.eu/commission/presscorner/detail/en/ip_23_1665

European Commission: Questions and Answers: The Net-Zero Industry Act and the European Hydrogen Bank (16 March 2023) https://ec.europa.eu/commission/presscorner/detail/en/QANDA_23_1666

European Commission: Remarks by Executive Vice-President Timmermans and Commissioner Breton at the press conference on the Net-Zero Industry Act and the European Hydrogen Bank (16 March 2023) https://ec.europa.eu/commission/presscorner/detail/en/speech_23_1702

Irish Government: Publications, 15/06/2023: Net-Zero Industry Act: Public Consultation Report https://enterprise.gov.ie/en/publications/the-net-zero-industry-act-public-consultation-report.html

European Parliament: Press Release, 25/10/2023: MEPs back plans to boost Europe's Net-Zero technology production https://www.europarl.europa.eu/news/en/press-room/20231023IPR08159/

EPP EP Group: Newsroom, 25/10/2023: Welcoming back our European industry https://www.eppgroup.eu/newsroom/welcoming-back-our-european-industry

European Parliament: Press Release, 21/11/2023: MEPs back plans to boost Europe's Net-Zero technology production https://www.europarl.europa.eu/news/en/press-room/20231117IPR12205/

Renew Europe EP Group: News, 21/11/2023: Net Zero Industry Act: Ready for a real boost for cleantech production in Europe! https://www.reneweuropegroup.eu/news/2023-11-21/net-zero-industry-act-ready-for-a-real-boost-for-cleantech-production-in-europe

S&D EP Group: Newsroom, 21/11/2023: S&Ds: With Net-Zero Industry Act each member state gets the freedom to choose what technologies it considers strategic https://www.socialistsanddemocrats.eu/newsroom/sds-net-zero-industry-act-each-member-state-gets-freedom-choose-what-technologies-it

Council of the European Union: Press Release, 07/12/2023: Net-Zero Industry Act: Council adopts position to boost technologies for the green transition https://www.consilium.europa.eu/en/press/press-releases/2023/12/07/net-zero-industry-act-council-adopts-position-to-boost-technologies-for-the-green-transition/

European Free Trade Association (EFTA): News, 11/12/2023: EEA EFTA States seek to strengthen EU Net Zero Industry Act for a greener and more competitive Europe https://www.efta.int/EEA/news/EEA-EFTA-States-seek-strengthen-EU-Net-Zero-Industry-Act-greener-and-more-competitive-Europe-539261

Council of the European Union: Press Release, 06/02/2024: Net-Zero Industry Act: Council and Parliament strike a deal to boost EU’s green industry https://www.consilium.europa.eu/en/press/press-releases/2024/02/06/net-zero-industry-act-council-and-parliament-strike-a-deal-to-boost-eu-s-green-industry/

European Commission: Press Release, 06/02/2024: Commission welcomes political agreement to make clean technology manufacturing in the EU resilient and competitive https://ec.europa.eu/commission/presscorner/detail/en/ip_24_680

Renew Europe EP Group: News, 06/02/2024: Deal on Net Zero Industry Act: a strong wake-up call to regain control of EU's industrial sovereignty https://www.reneweuropegroup.eu/news/2024-02-06/deal-on-net-zero-industry-act-a-strong-wake-up-call-to-regain-control-of-eus-industrial-sovereignty

European Parliament: Press Release, 07/02/2024: Deal on plans to boost Europe’s Net-Zero technology production https://www.europarl.europa.eu/news/en/press-room/20240205IPR17410/

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