New EU law passed to boost domestic manufacturing of climate technologies

The legislation is expected to come into force after the EU elections in June, as one of the top priorities for the new parliamentary term.


The European Union has officially enacted the Net-Zero Industry Act (NZIA), a recent law aiming to bolster clean technologies manufacturing within Europe. President of the European Commission, Ursula von der Leyen, emphasised the importance of this initiative in a press release, stating that the NZIA provides a robust regulatory framework which encourages competitiveness to scale up domestic green tech production – crucial for the EU’s plan to reach net zero by 2050.

By 2030, the Act states that the EU must produce 40% of solar panels, wind turbines, heat pumps, and other essential clean tech equipment within the bloc. The NZIA was introduced as part of the Green Deal Industrial Plan, unveiled earlier last year, which outlines the EU’s approach to increasing its manufacturing capabilities for net-zero technologies.

Why does it matter?

By ensuring that a substantial portion of clean technology is produced domestically, the EU aims to strengthen its economic sovereignty while reducing its dependence and competitivity of its market-dominating counterparts in the US and China. This is particularly critical as the demand for renewable energy solutions is expected to surge in the coming years, driven by regional and global climate commitments.