EU Parliament passes Net-Zero Industry Act to boost decarbonisation

The Act, which also seeks to capture 15 per cent of the global market share for these technologies, covers a broad spectrum including renewable energy, nuclear power, grid solutions, energy storage, and biotech advancements. A significant reform introduced by the law is the simplification of the permitting process, establishing maximum timelines for project authorisation based on their size and impact.

Furthering the initiative, the legislation will facilitate the creation of ‘Net-Zero Acceleration Valleys’. These will expedite environmental assessments by allowing member states to handle parts of the evidence collection, thereby speeding up the deployment of new technologies.

Domestic support schemes will be adjusted to encourage consumers to adopt sustainable technologies like solar panels and heat pumps more swiftly. Additionally, public procurement and auctions for renewable resources will be required to meet sustainability and resilience criteria.

Funding for these strategic projects will be boosted by national Emission Trading System revenues and the Strategic Technologies for Europe Platform (STEP), marking a move towards the establishment of a European Sovereignty fund.

The Act was adopted by a significant majority, with 361 votes in favour, 121 against, and 45 abstentions. It now awaits formal adoption by the Council before becoming law, as Europe seeks to reduce its dependency on non-EU countries for clean energy technology and meet its 2030 and 2050 climate targets.

“This vote is good news for European industry and sets the tone for the next term. To achieve all our economic, climate and energy ambitions, we need industry in Europe. This Act is the first step to making our market fit for this purpose,” said lead MEP Christian Ehler (EPP, DE).

Fibre2Fashion News Desk (KD)