PURPOSE: to establish a framework to ensure the Union's access to a secure and sustainable supply of net-zero technologies, including by scaling up the manufacturing capacity of net-zero technologies and their supply chains to safeguard their resilience while contributing to achieving the Union’s climate targets and climate neutrality objective.
LEGISLATIVE ACT: Regulation (EU) 2024/1735 of the European Parliament and of the Council on establishing a framework of measures for strengthening Europe’s net-zero technology manufacturing ecosystem and amending Regulation (EU) 2018/1724.
CONTENT: the regulation seeks to boost the industrial deployment of net-zero technologies that are needed to achieve the EU's climate goals. To achieve the general objective, this regulation lays down measures aiming to:
- lower the risk of supply disruptions related to net-zero technologies likely to distort competition and fragment the internal market, in particular by identifying and supporting the scale-up of the manufacturing capacity of net-zero technologies and their supply chains;
- establish a Union market for CO2 storage services;
- encourage demand for sustainable and resilient net-zero technologies through public procurement procedures, auctioning and other forms of public intervention;
- enhance skills through the support of the Academies, thereby safeguarding and creating quality jobs;
- support innovation through the creation of net-zero regulatory sandboxes, coordination of research and innovation activities through the Strategic Energy Technologies Plan Steering Group, as well as through the use of pre-commercial procurement and public procurement of innovative solutions;
- improve the Union’s ability to monitor and mitigate supply risks related to net-zero technologies.
Benchmarks
Progress towards the objectives of the net-zero industry act will be measured by two indicative benchmarks:
- firstly, manufacturing capacity of net-zero technologies, such as solar photovoltaic panels, wind turbines, batteries and heat pumps, reaching 40% of the EU’s deployment needs;
- secondly, a specific target for an increased Union share for these technologies with a view to reaching 15 % of world production by 2040.
Streamlining administrative and permit-granting processes
By 30 December 2024 Member States will establish or designate one or more authorities as single points of contact at the relevant administrative level. Each single point of contact will be responsible for facilitating and coordinating the permit-granting process for net-zero technology manufacturing projects, including for net-zero strategic projects.
The permit-granting process for net-zero technology manufacturing projects will not exceed any of the following time limits: (a) 12 months for the construction or expansion of net-zero technology manufacturing projects with a yearly manufacturing capacity of less than 1 GW; (b) 18 months for the construction or expansion of net-zero technology manufacturing projects with a yearly manufacturing capacity of 1 GW or more.
The permit-granting process for net-zero technology manufacturing projects for which a yearly manufacturing capacity is not measured in GW, will not exceed a time limit of 18 months.
Net-zero strategic projects will be considered to contribute to the security of supply of net-zero technologies in the Union and, therefore, to be in the public interest. Where a project is recognised as a net-zero strategic project, Member States will grant that net-zero strategic project the status of the highest national significance possible, where such a status exists in national law, and that net-zero strategic project will be treated accordingly in the permit-granting processes, including those relating to environmental assessments.
Net-zero acceleration valleys
The regulation promotes the development of net-zero acceleration valleys. The aim of these valleys is to create ‘net-zero’ clusters of industrial activity in order to increase the attractiveness of the Union as a location for production activities and to further streamline administrative procedures for setting up production capacities for ‘net-zero’ technologies.
Access to markets
The regulation facilitates market access for strategic technology products (in particular in public procurement or the auctioning of renewable energies).
Union level objective of CO2 injection capacity
An annual injection capacity of at least 50 million tonnes of CO2 will be achieved by 2030 in storage sites, meaning geological storage sites, located in the territory of the Union.
Net-zero Europe Platform
The regulation establishes the net-zero Europe Platform to better coordinate and create synergies between the existing funding programmes at Union and national level. Members of the Platform will coordinate the Net-Zero Industrial Partnerships within the Platform to help promote the adoption of net-zero technologies globally, to collaborate in the development of innovative net-zero technologies and to support the role of Union industrial capabilities in paving the way for the global clean energy transition.
ENTRY INTO FORCE AND APPLICATION: from 29.6.2024.