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

Author (Corporate)
Series Details COM (2023) 161
Publication Date 16/03/2023
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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.

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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.

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Commentary and Analysis
Bruegel: First Glance, 09/03/2023: The EU Net Zero Industry Act and the risk of reviving past failures
EurActiv: Opinion, 14/03/2023: A transatlantic opening on green industrial policy?
Politico, 16/03/2023: The great EU subsidy shakedown
European Automobile Manufacturers’ Association (ACEA): News, 17/03/2023: Net-Zero Industry Act and Critical Raw Materials Act: proposals welcomed but questions remain

EurActiv, 07/03/2023: 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
Politico, 16/03/2023: Commission releases Net-Zero Industry Act
Reuters, 16/03/2023: EU announces plans to lead green industrial revolution
Politico, 16/03/2023: 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
EurActiv, 17/03/2023: EU’s Net-Zero Industry Act sends ‘positive signal’ for nuclear, advocates say

European Commission: Press Release, 16/03/2023: Net-Zero Industry Act: Making the EU the home of clean technologies manufacturing and green jobs
European Commission: Questions and Answers: The Net-Zero Industry Act and the European Hydrogen Bank (16 March 2023)
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)

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