The European Parliament and the Council of the European Union have reached a preliminary agreement on the Net-Zero Industry Act to scale up European production of batteries, windmills, and solar panels.
The European Union aims to assist its ‘green’ industry in competing with China and the United States, as agreed upon by EU countries and the European Parliament. By 2030, the EU is obligated to produce 40 percent of its own solar panels, fuel cells, heat pumps, and other supplies necessary for the transition to a sustainable European economy.
The EU seeks to reduce its dependence on China, particularly in light of its solar panel industry’s struggle against subsidized Chinese competitors. There are concerns that a similar situation may arise with windmills and batteries for electric cars.
The Net Zero Industry law, agreed upon by negotiators from EU countries and the European Parliament on Tuesday, is expected to take effect later this year. Prior to implementation, member states and parliament must ratify the agreement, typically a formality.
The new law facilitates European companies in obtaining licenses more easily and quickly. Additionally, they are likely to be more successful in tenders due to conditions that better align with their needs.
Proposed in March of the previous year, the Net-Zero Industry Act aims to ensure that the EU’s strategic production capacity for eight net-zero technologies, including batteries, CO2 capture and storage (CCS), electrolyzers, heat pumps, windmills, solar collectors, and solar panels, reaches at least 40 percent of European demand by 2030.
The Net-Zero Industry Act intends to simplify licensing procedures and support strategic projects to ease conditions for investment in green technologies. The recently reached agreement calls for the establishment of ‘Net-Zero Acceleration Valleys’ to expedite the licensing process for new factories. Additionally, the licensing procedure will be streamlined by setting maximum deadlines for project approval, contingent on size and output.
National support schemes to accelerate the adoption of technologies in households and among consumers, such as heat pumps and solar panels, must consider sustainability and resilience criteria. These criteria ensure European producers that their products will have a market. The provisional agreement stipulates that when an EU member state conducts an auction for the deployment of renewable energy technologies, it can apply pre-qualification and award criteria unrelated to price, such as environmental sustainability, contribution to innovation, or integration of energy systems. These criteria should apply to at least 30% of the volume auctioned annually per member state or a maximum of 6 gigawatts of auctions per year and per country.
