EU Parliament Approves New Law to Boost Manufacturing of Key Decarbonization Technologies

Lawmakers in the European Parliament have approved the Net-Zero Industry Act (NZIA) with a vote of 361-121. The legislation, initially proposed by the European Commission as part of its Green Deal Industrial Plan strategy, aims to support the manufacturing of key technologies necessary to achieve Europe’s climate and energy goals. The NZIA targets 19 specific technologies, including renewable energy, storage, carbon capture and storage (CCS), and nuclear power. It outlines actions such as streamlining permitting processes, introducing sustainability criteria in public procurement, and setting up “Net-Zero Industry Academies” to develop a skilled workforce. The law will now need to be approved by the EU Council before coming into effect. The NZIA was launched in response to Europe’s reliance on imported technologies for its climate objectives and the growing global competition in the net-zero market. The passage of the U.S.’s Inflation Reduction Act, which allocated significant funding for renewable energy and decarbonization solutions, intensified this competition. The NZIA sets targets for the EU to produce 40% of its annual deployment needs for the targeted technologies and capture 15% of the global market value. The legislation was amended to include the promotion of net-zero acceleration “valleys,” which concentrate companies working on specific technologies to create clusters of net-zero industrial activity. The adoption of the NZIA is seen as a positive step toward making the European market conducive to achieving economic, climate, and energy ambitions. Resources: https://www.esgtoday.com/eu-parliament-approves-new-law-to-boost-manufacturing-of-key-decarbonization-technologies/