On Thursday, the European Commission sleepless Net-Zero Industry Act, a long-awaited proposal that aims to boost the EUthe production of green technology in the midst of a increasingly intense world race.
The new regulation is a key part of the European Green Industrial Plan — the bloc’s response to the US$369 billion green subsidy package — seeking to ensure that at least 40% of the net zero technology demand is produced internally by 2030.
“We need a regulatory environment that allows us to quickly scale up the transition to clean energy,” Commission President Ursula von der Leyen said in a statement. statement. “The Net-Zero Industry Act will do exactly that. It will create the best conditions for those sectors that are crucial for us to reach net zero by 2050.”
Among the technologies designated as “strategic” for decarbonizing the bloc are solar power, onshore and offshore wind, batteries and storage, carbon capture, biogas/biomethane, and renewable hydrogen.
The law proposes several key actions to boost investment in the domestic manufacturing of these technologies. These include expedited permitting, increased skilled labor, a designated platform to allow for cooperation between the Commission and member states, and regulatory sandboxes that member states can use to test innovative technologies.
Along with the Net-Zero Industry Act, the Commission also published its Critical Raw Materials Proposalwhose objective is to strengthen the supply of the block of critical minerals necessary for the manufacture of technology and reduce dependence on imports.
Both regulations are pending approval by the European Parliament and the Council before they can enter into force.
“Demand is growing in Europe and around the world, and we are acting now to ensure that we can meet more of this demand with European supply,” von der Leyen noted.
