The new rules aim to give the bloc “clean technology sovereignty” in the face of competition from China and the United States.
A decisive vote in the European Parliament today (25 April) will force European companies operating in renewable energy and other clean technology sectors to streamline their operations in line with the EU’s climate and environmental goals. They will enjoy improved permitting procedures, public procurement procedures, and other policy support.
At the last plenary session in Strasbourg before the EU elections, MPs supported the Net Zero Industry Act (NZIA) by 361 votes to 121, paving the way for accelerated green industrialization in the bloc. The new legal framework aims to boost domestic production of technologies needed for decarbonisation, such as electric vehicle batteries, heat pumps, solar panels, electrolyzers and wind turbines.
Submitted by the EU Executive in March 2023 in response to billions of dollars in subsidies under the US Inflation Control Act (IRA) and increasing competition from China, the The company has set a goal of producing products in its own country. , aimed at the implementation of Member States’ energy and climate plans. After several rounds of negotiations with national governments in the Council of the EU, the EU also aims to meet 15% of global demand.
“Without a competitive industry, the Green Deal is doomed to failure,” said Christian Ehrler (Germany/EPP), who led the passage of the bill into parliament. He said this while referring to the fusion of Materials Law and the various funding opportunities at EU level to support investments in related areas.
“Without the right materials, it is not possible to produce solar panels in Germany or Europe. We have established a clear framework for this,” Ehrler said, adding that the outcome of the long negotiations was realistic. Ta. Legislation with a clear supply chain approach.
MEP Tiemo Wölken (Germany/S&D) recognized the importance of industrial competitiveness, but warned that the transition to a net-zero emissions economy should not come at the expense of people and the environment. “We must not forget social justice and equity,” he stressed.
Speaking for the Green Party/EFA Group, German MEP Henrike Hahn (Germany/Green Party) argued that support should be focused on truly sustainable technologies. “We need to end dinosaur technologies like nuclear, and we don’t want greenwashing of strategic projects,” she said.
However, not all factions were satisfied with the outcome. Kosma Zlotowski, a Polish lawmaker from the vote-divided European Conservatives and Reform Party (ECR), said in a pre-vote debate that the EU’s climate policy and ambitions to become a world leader were “instruments” to combat climate change. Stated. Toward Crisis and Poverty.”
“Regardless of how much we invest in building zero-emission economies, we will never compete with those economies.” [China, the US]is not limited by such strict environmental standards,” Zlotowski said.
Giorgo Chatzimarkakis, CEO of Hydrogen Europe, spoke on behalf of the industry to increase funding available for strategic technologies and to maximize Europe’s potential in capital markets. He appealed to MPs to “bridge the gap between ambition and reality” by introducing the Alliance.
Cleantech for Europe, another industry association representing manufacturers of net-zero technologies, was among a range of industry representatives to welcome the NZIA’s adoption, but in an open letter it called for Europe to He expressed his regret that the city has not yet reached the point of becoming a “home base for clean tech manufacturing.” He called for an agreement to strengthen the EU’s competitiveness.
Environmental NGOs also objected to the final form of the law, citing the NZIA’s lack of social dimensions and over-reliance on “unproven” technology.
Boris Jankowiak, an industrial policy expert at the NGO Climate Action Network (CAN) Europe, said NZIA had lost its original focus on truly green technologies. Camille Morley, senior policy officer for industrial decarbonization at WWF-Europe, agreed, calling the vote a “missed opportunity”.
“This regulation was only supposed to cover technologies that are proven to have a significant impact on achieving the EU’s 2030 climate goals,” Morley said. “Expanding the scope to a long list of technologies will free up taxpayer funds to magically fix future technologies.”
The law awaits formal adoption by the Council of the European Union before it enters into force.