EU’s Net-Zero Industry Act scales up domestic clean tech production

As part of the Green Deal Industrial Plan, the European Commission has proposed the Net-Zero Industry Act to scale up manufacturing of clean technologies in the EU.

The Act aims to boost domestic resilience and competitiveness of net-zero technology manufacturing in the EU, as well as accelerate net-zero projects and attract investments.

It’s the latest policy proposal this week coming out of Europe. The proposal for a European Critical Raw Materials Act and the reform of the electricity market design were also announced, all seeking to reduce the EU’s reliance on highly concentrated imports.

The proposed legislation aims to support domestic production of a range of technologies including; solar, wind, and geothermal, as well as storage, heat pumps, electrolysers and CCUS.

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The Net-Zero Industry Act aims to:

• Reduce the administrative burden to set up projects and simplify permit-granting processes
• Remove barriers to developing CO2 capture and storage as an economically viable climate solution
• Require public authorities to consider sustainability criteria for net-zero technologies in public procurement or auctions
• Enhance skills development to support the production of net-zero technologies in the EU
• Make it possible for Member States to set up regulatory sandboxes to test innovative net-zero technologies and stimulate innovation, under flexible regulatory conditions
• Create a Net-Zero Europe Platform to assist the Commission and Member States to coordinate action, exchange information, monitor progress and support investment by identifying financial needs, bottlenecks and best practices for projects across the EU.

Hydrogen Bank

As part of the Net-Zero Industry Act, the Commission also presented a plan for the design and functions of the European Hydrogen Bank.

Hydrogen Europe explained that the bank will facilitate both local and imported renewable hydrogen, beginning with an €800 million pilot auction for domestic production of renewable hydrogen this year. Lawmakers are also assessing the feasibility of creating a green premiums scheme for which suppliers from third countries or EU off-takers contracting with third country producers could also apply.

Commenting on the announcement, Jorgo Chatzimarkakis, CEO of Hydrogen Europe stated: “Today is a turning point for the acceleration of the European hydrogen economy, thanks to the ambition expressed by the Commission via the NZIA and CRM acts.

This first look at the structure of the long-awaited hydrogen bank is the cherry on top of what is a momentous day for European hydrogen. We look forward to continued dialogue with policymakers as we work to make Europe the global leader in hydrogen for decades to come.”

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