All subjects
Policy

MEPs back plans to boost Europe’s Net-Zero tech

MEPs back plans to boost Europe’s Net-Zero tech
Dr Christian Ehler MEP (photo courtesy EPP, DE).

The European Parliament (EP) has adopted its position on legislation intended to bolster Europe's manufacturing output in technologies needed for decarbonization. The "Net-Zero Industry Act" sets a target for Europe to produce 40 percent of its annual deployment needs in net-zero technologies by 2030, based on National Energy and Climate Plans (NECPs), and to capture 25 percent of the global market value for these technologies. It also intends to deal with the challenges of scaling up manufacturing capacities in these technologies.

A considerable amount of clean energy technology is needed to support reaching Europe’s 2030 and 2050 climate targets. Europe largely imports these technologies, and many non-EU countries have stepped up their efforts to expand their clean energy manufacturing capacity.

The proposed regulation would aim to ensure that, by 2030, the manufacturing capacity in the EU for these strategic net-zero technologies reaches an overall benchmark of at least 40 percent of the EU’s annual deployment needs.

It would also set an EU-level target for annual carbon dioxide (CO2) injection capacity by 2030 (50 million tonnes).

In their amendments, MEPs broadened the scope of the Commission’s draft legislation to encompass the entire supply chain, including components, materials, and machinery for producing net-zero technologies.

They propose a wider, more comprehensive list of technologies to be covered, to be updated periodically.

Notably, MEPs included nuclear fission and fusion technologies, sustainable aviation fuels (SAFs), and specific industrial technologies.

The legislation was adopted with 376 votes to 139, with 116 abstentions.

Net-zero industry valleys

The law retains two project classifications: net-zero technology manufacturing projects and net-zero strategic projects. It also aims to streamline the permitting process, setting a timeline of 9 to 12 months for regular projects and 6 to 9 months for strategic projects to be authorized.

MEPs propose the creation of “Net-Zero Industry Valleys” initiatives, speeding up the permitting process by delegating parts of the environmental assessment evidence collection to member states.

The legislation would earmark funding from national Emission Trading System (ETS) revenues and for most strategic projects through the Strategic Technologies for Europe Platform (STEP), a step towards a European Sovereignty fund, MEPs say.

With the adoption of this proposal, MEPs are showing they are serious about making Europe fit for industrial manufacturing. Without these steps to reduce the administrative burden, speed up processes, and increase public investment in our industry and innovation, Europe would face decarbonization by deindustrialization. This proposal shows we can prevent this, said Dr Christian Ehler (EPP, DE), lead MEP.

Once the  Council has also adopted its position, talks on the final shape of the law can start.

Most read on Bioenergy International

Get the latest news about Bioenergy

Subscribe for free to our newsletter
Sending request
I accept that Bioenergy International stores and handles my information.
Read more about our integritypolicy here