The “Net-Zero industry act” sets a target for Europe to produce 40% of net-zero technologies based on National Energy and Climate Plans (NECPs) and to capture 25% of the global market value for these technologies. It also intends to deal with the challenges in scaling up manufacturing capacities in these technologies.

In their amendments, MEPs broadened the scope of the draft legislation to encompass the entire supply chain, including components, materials, and machinery for producing net-zero technologies. They propose a wider, more comprehensive list of technologies to be covered, to be updated periodically. Notably, MEPs included nuclear fission and fusion technologies, sustainable aviation fuels (SAFs), and specific industrial technologies.

Net-zero industry valleys

The law retains two project classifications: net-zero technology manufacturing projects and net-zero strategic projects. It also aims to streamline the permitting process, setting a timeline of 9 to 12 months for…