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. 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.

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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?
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
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
Friedrich Ebert Foundation (FES): News, 30/03/2023: The key provisions in the EU’s Net Zero Industry Act
Clifford Chance: Briefings, 24/04/2023: The European Net Zero Industry Act
Association of European Chambers of Commerce and Industry (Eurochambres), 02/05/2023: Position on Net Zero Industry Act
Transport & Environment: Discover, 04/05/2023: 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
Confederation of European Paper Industries (CEPI), 11/05/2023: 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
Federation of German Industries (BDI): News, 26/05/2023: 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
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
DLA Piper: Environment, Health & Safety and Product Compliance Blog, 19/06/2023: 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
European Parliamentary Research Service (EPRS): Policy Podcast, 06/07/2023: Net-Zero Industry Act
World Wide Fund for Nature (WWF), 25/10/2023: Industry Committee loses focus on Net Zero Industry Act
European Parliamentary Research Service (EPRS): Briefing, 09/11/2023: Net-zero industry act
European Parliamentary Research Service (EPRS): At a Glance, 15/11/2023: Net-zero industry act
World Wide Fund for Nature (WWF), 21/11/2023: European Parliament fails to keep Net Zero Industry Act focused
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
European Trade Union Confederation (ETUC): Press Release, 21/11/2023: Net-Zero Industry Act: Europe risks falling behind US on 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
European Environmental Bureau (EEB): Press Release, 06/02/2024: 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

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
EurActiv: Opinion, 28/06/2023: Rebooting the European Union’s Net-Zero Industry Act
Politico, 21/11/2023: Starting from behind: EU vies to gain ground in green tech race
Science Business, 07/12/2023: Negotiations on EU’s net-zero industry act to start next week
Science Business, 16/01/2024: EU Parliament edges forward deal on Net Zero Industry Act
Reuters, 06/02/2024: EU agrees path to compete in clean tech production
Politico, 06/02/2024: EU finalizes green tech bill, responding to US effort
EurActiv, 07/02/2024: EU agrees law to boost green industry at home

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))
European Parliament: Legislative Train Schedule: Net-zero industry act
General Secretariat of the Council (EU): Policies: EU industrial policy
European Commission: Strategy and Policy: Net-Zero Industry Act
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)
Irish Government: Publications, 15/06/2023: Net-Zero Industry Act: Public Consultation Report
European Parliament: Press Release, 25/10/2023: MEPs back plans to boost Europe's Net-Zero technology production
EPP EP Group: Newsroom, 25/10/2023: Welcoming back our European industry
European Parliament: Press Release, 21/11/2023: MEPs back plans to boost Europe's Net-Zero technology production
Renew Europe EP Group: News, 21/11/2023: 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
Council of the European Union: Press Release, 07/12/2023: 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
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
European Commission: Press Release, 06/02/2024: Commission welcomes political agreement to make clean technology manufacturing in the EU resilient and competitive
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
European Parliament: Press Release, 07/02/2024: Deal on plans to boost Europe’s Net-Zero technology production

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