The Net-Zero Industry Act aims to enhance European manufacturing capacity for net-zero technologies and their key components, addressing barriers to scaling up production in Europe. The Regulation will increase the competitiveness of the net-zero technology sector, attract investments, and improve market access for clean tech in the EU. This supports the clean energy transition and improves the EU’s energy resilience.
The Act sets a goal for net-zero manufacturing capacity to meet at least 40% of the EU’s annual deployment needs by 2030, providing predictability, certainty and long-term signals to manufacturers and investors. By 2030, the act aims to create a Union market for CO2 storage services. It sets a Union-level goal and mandates an annual CO2 storage capacity of at least 50 million tonnes.
Overview of the Net-Zero Industry Act
Scope of application
The NZIA encompasses final products, components, and machinery necessary for manufacturing net-zero technologies, including
- Solar photovoltaic and solar thermal technologies
- Onshore and offshore renewable technologies
- Battery/storage technologies
- Heat pumps and geothermal energy technologies
- Hydrogen technologies, including electrolysers and fuel cells
- Sustainable biogas/biomethane technologies
- Carbon capture and storage (CCS) technologies
- Grid technologies
- Nuclear fission energy technologies, including nuclear fuel cycle technologies
- Sustainable alternative fuels technologies
- Hydropower technologies
- Other renewable energy technologies
- Energy system-related energy efficiency technologies, including heat grid technologies
- Renewable fuels of non-biological origin technologies
- Biotech climate and energy solutions
- Other transformative industrial technologies for decarbonisation
- CO2 transport and utilisation technologies
- Wind propulsion and electric propulsion technologies for transport
- Other nuclear technologies
The Act also covers manufacturers in energy-intensive industries like steel, chemicals, and cement that produce components used in net-zero technologies and invest in decarbonisation.
Increasing planning and investment certainty
A central aspect of the Net-Zero Industry Act is to ensure that net-zero technology manufacturing projects located in the European Union can benefit from shorter and predictable lead times. EU countries put in place Single Points of Contact that are responsible for facilitating and coordinating the entire permit-granting process for projects within the scope of the NZIA. Their role is critical in enhancing investment confidence, improving planning certainty, and positioning the EU as a global leader and prime destination for business and innovation in net-zero technologies.
EU countries also provide access to investment-relevant information online and in a centralised and easily accessible manner, including on the single points of contact, the permitting processes, financing and investment services, funding possibilities at Union or Member State level, and business support services.
See the ‘Streamlined permitting and information for project promoters’ webpage.
Net-zero strategic project status
The Act allows for the establishment of net-zero strategic projects, essential for enhancing the resilience, strategic autonomy, and competitiveness of the EU’s net-zero industry. Net-zero strategic projects receive additional advantages, such as ‘priority status' at national level, faster permitting, focused attention in the Net-Zero Europe Platform (including financing advice), and urgent treatment in judicial and dispute resolution procedures, in line with national and EU laws.
Net-zero technology manufacturing projects can apply for this status through a dedicated application process available via this website from the end of July 2024.
See the Net-Zero strategic projects webpage.
New mandatory rules in in public procurement, auctions and other schemes
The Net-Zero Industry Act boosts demand for renewable energy by implementing mandatory non-price criteria in procurement procedures for clean technologies and renewable energy auctions. Public authorities must consider criteria such as sustainability, resilience, cybersecurity and other qualitative factors.
For public procurement, sustainability is a minimum mandatory requirement. The resilience criterion requires public buyers to diversify supply sources in cases of high dependency. Authorities must also consider at least one criterion among social sustainability, cyber security and timely delivery obligations.
In renewable energy auctions like solar or wind farms, authorities must evaluate the auction's contribution to sustainability and resilience, cybersecurity, responsible business conduct, and ability to to complete projects on time. These criteria must apply to least 30% of the volume auctioned annually in each EU country or 6 gigawatts, respectively.
The Act also covers public intervention forms, such as support schemes that incentivise households’ and businesses to purchase net-zero technology products, such as schemes supporting rooftop photovoltaics installations on private homes.
Net-Zero Europe Platform
The Net-Zero Industry Act establishes the ‘Net-Zero Europe Platform’, a governance body that comprises the Commission and EU countries to monitor progress, discuss developments, and engage with civil society stakeholders. The platform advises on financing for net-zero strategic projects and engages in international net-zero industrial partnerships to with facilitate global clean energy transition.
See more information on the Net-Zero Europe Platform web page.