The Net-Zero Industry Act: Making the EU the home of clean technologies manufacturing and green jobs

The Net-Zero Industry Act (NZIA) creates a regulatory framework to boost the competitiveness of EU industry and technologies crucial for decarbonisation.

Overview of the Net-Zero Industry Act

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. 

Scope of application

The NZIA encompasses final products, components, and machinery necessary for manufacturing net-zero technologies, including

Net-zero technology manufacturing projects that produce final products, specific components or machinery, primarily used to produce these net-zero technologies, can benefit from the provisions on permitting and strategic project status. To determine whether a project falls within the scope of the Net-Zero Industry Act, authorities and project promoters may consult the relevant delegated act on primarily used components.   

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. On 18 June 2025, the Commission adopted an Implementing Decision on guidelines for EU country authorities to assess net-zero strategic project applications.

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. An Implementing Regulation adopted on 18 June 2025 specifies these pre-qualification and award criteria.

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.

On 18 June 2025 an implementing act came into force. It sets out which components must include the non-price criterion of ‘resilience’ in renewable energy auctions, public procurement, and other support schemes. Authorities must apply this criterion whenever renewable energy products contain components on which the EU is highly dependent. To support this, the Commission published a Communication on 23 May 2025, outlining trade flows and key strategic dependencies for these components.

Net Zero Acceleration Valleys

The Net-Zero Industry Act introduced the concept of Net-Zero Acceleration Valleys are to cluster industries and attract investment in net-zero technology manufacturing projects at regional and local levels.  

Each valley focuses on a defined geographical area and specific technologies, encouraging industrial cooperation. They build on existing project pipelines, infrastructure, and access to skilled workers.  

EU countries are responsible for designating valleys and preparing plans that set out concrete national measures to support net-zero technology manufacturing and simplify administrative procedures.  

A dedicated website will follow in Q3 2025.

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.

The Net-Zero Industry Act also led to the Net-Zero Regulatory Burden Scientific Advisory Group, which helps simplify regulations for net-zero technologies. The group brings together scientific and industry experts to review existing rules, suggest improvements, and ensure that regulatory measures keep pace with technological advancements and strategic priorities.