The European Commission unveils the Net-Zero Industry Act to boost clean technologies manufacturing in the EU

On 16 March 2023, the European Commission introduced the Net-Zero Industry Act as part of the Green Deal Industrial Plan. The act aims to boost the manufacturing of clean energy technologies in the EU and support the transition to a more sustainable and secure energy system.

The Act will create a conducive environment for setting up net-zero projects in Europe and attracting investments, with the goal of reaching at least 40% of the Union’s net-zero technologies manufacturing capacity by 2030. It addresses various technologies to progress decarbonisation, such as solar photovoltaic, wind energy, batteries and storage, heat pumps, carbon capture, grid technologies and sustainable alternative fuels, among others.

The new legislation is based on the following pillars: improving investment conditions, accelerating CO2 capture, facilitating access to markets, enhancing workforce skills, and fostering innovation. It also provides for regulatory sandboxes and a Net-Zero Europe Platform.

This will add to the EU’s recent efforts – the proposal for a European Critical Raw Materials Act and the reform of the electricity market design – to reduce reliance on highly concentrated imports, achieve its climate and energy targets, and secure the path towards climate neutrality while enhancing the competitiveness of its industry.

The Commission is also presenting the European Hydrogen Bank, which will encourage renewable hydrogen imports and facilitate hydrogen production within the EU.

The European Parliament and the Council of the European Union will now discuss the proposal before its adoption and entry into force.