The European Union’s legislative branch has made a significant stride towards becoming a global leader in net-zero technology production by adopting the Net Zero Industrial Act (NZIA) on Thursday. This move brings the bill closer to becoming European law, as it was approved by the European Parliament with 361 votes in favor and 121 against, with 45 abstentions.
The NZIA aims to establish deployment targets for various EU-manufactured net-zero equipment, such as electrolysers and fuel cells. The bill includes provisions for granting regulatory benefits to net-zero equipment manufacturers to enhance manufacturing capacity, with a goal of ensuring that 40% of all electrolyser deployment in the EU is “Made In Europe.” Additionally, the NZIA sets a target for the EU to capture 15% of the global market for these technologies.
One key feature of the NZIA is the creation of “Net-Zero Acceleration Valleys,” which will allow projects looking to establish new manufacturing facilities to delegate certain environmental assessment responsibilities to host governments. Christian Ehler, leading this bill in the European Parliament, emphasized its importance in supporting European industry and achieving economic, climate, and energy objectives.
The adoption of this legislation is viewed as a response to China’s increasing dominance in the global net-zero technology market. Currently, China ranks first in the electrolyzer market while Europe comes second behind it. Western manufacturers have expressed concerns about EU subsidy schemes that may benefit low-cost Chinese equipment over European-made products. By promoting domestic net-zero technology production through this act, Europe hopes to bolster its position in an expanding global market.
Overall, this significant step forward by the European Union’s legislative branch has brought it one step closer towards becoming a leader in net-zero technology production globally.
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