The Net-Zero Industry Act, a ground-breaking attempt to increase the European Union’s (EU) self-reliance in technologies necessary for decarbonization, was endorsed by the European Parliament. The legislation, which was passed on Thursday, aligns with national energy and climate plans and sets ambitious goals for the continent to provide 40% of its annual net-zero technology needs by 2030.
A wide range of topics are covered by the Act, which also aims to obtain 15% of the global market share for these technologies. These topics include biotech developments, grid solutions, nuclear power, renewable energy, and energy storage. Simplifying the permitting procedure and imposing maximum dates for project approval based on project size and impact is a major reform brought about by the law.
The legislation will make it easier to establish “Net-Zero Acceleration Valleys,” which will advance the program. By letting member states handle some of the evidence gathering, this will hasten environmental evaluations and hasten the introduction of innovative technology. In order to encourage customers to adopt sustainable technologies like heat pumps and solar panels more quickly, domestic support schemes will be changed. It will also be necessary for public auctions and purchase of renewable resources to adhere to sustainability and resilience standards. A step toward the creation of a European Sovereignty fund, funding for these important initiatives will be increased by national Emission Trading System revenues and the important Technologies for Europe Platform (STEP).
A substantial majority of votes—361, 121 against, and 45 abstentions—approved the Act. As Europe works to reach its 2030 and 2050 climate targets and lessen its reliance on non-EU nations for renewable energy technology, it currently requires the Council’s formal adoption before becoming legislation.
“This vote establishes the tone for the upcoming term and is positive news for the European industry.” We need industry in Europe to realize all of our goals on the economy, the environment, and energy. The first step toward preparing our market for this goal is this Act, according to lead MEP Christian Ehler (EPP, DE).
