European Parliament approves regulation for zero net emission in industry

Brussels – The European Parliament gave the final green light for the Net Zero Emissions Industry Act, better known as the Net Zero Industry Act. By a large majority (361 votes in favor, 121 against, and 45 abstentions), it passed the regulation, which aims to strengthen the production of the technologies needed for decarbonization, responding to the climate and energy targets at the heart of the Green Deal.

The regulation, which was already informally agreed on with the Council, sets a target for the European Union to produce 40 percent of its annual needs for net-zero-emitting technologies by 2030, based on national energy and climate plans (NREAPs) that each state will have to develop and to achieve 15 percent of the global market value for such technologies. The national plans that governments are required to draw up will also need to include mechanisms for households and consumers to switch more quickly to technologies such as solar panels.

As part of this sustainable production path, the regulation envisages the creation of special Zero Net Emission Acceleration Zones, which will benefit from a fast-track authorization process, delegating part of the information gathering for environmental assessments to member states. Public procurement procedures and auctions to deploy renewable energy sources will still have to meet sustainability criteria that the European Commission will define in detail after the regulation enters into force. Technologies that will be supported include all renewable technologies, nuclear, industrial decarbonization, grid, energy storage technologies, and biotechnology.

“This vote is good news for European industry and sets the tone for the next term,” the measure’s rapporteur Christian Ehler (EPP), stressed, also noting his satisfaction that the Net Zero Emissions Industry Regulation is in line with the conclusions of the Conference on the Future of Europe. In particular, the act reflects Proposal 3 (measures 1, 3, 5, 6), Proposal 11 (measure 1), Proposal 12 (measure 5), Proposal 17 (measure 1), and Proposal 18 (measure 2), which collectively aim to promote a sustainable, resilient, and independent energy framework within the EU.