European Union (EU) governments have formally approved landmark legislation aimed at boosting the union's cleantech manufacturing capabilities. Approved on Monday, the Net Zero Industry Act (NZIA) sets an ambitious goal for the EU to domestically produce 40 percent of solar panels, wind turbines, heat pumps and other cleantech equipment by 2030. The move is intended to enable European industry to compete more effectively with peers from the US and China.
NZIA is a vital component of the EU's strategy to maintain leadership in reducing greenhouse gas emissions and manufacturing the technologies needed to support this transition. Currently, Europe is heavily reliant on China, which is projected to control 80% of global solar manufacturing capacity. Additionally, the EU faces the challenge of $369 billion in green subsidies from the U.S. Anti-Inflation Act, which could drive European producers to relocate across the Atlantic.
The new law will come into force next month or early July, following its formal signature by the presidents of the European Parliament and the European Council and its publication in the EU's Official Journal. The law reflects the EU's determination not only to reduce emissions but also to secure its place in the global clean technology market.
To achieve its goal, the EU has set itself the goal of producing 40% of the products needed to reduce greenhouse gas emissions by 2030. This includes a wide range of technologies, including renewable energy sources, nuclear, heat pumps, electrolyzers and carbon capture and storage systems. Furthermore, the EU aims to reach 15% of the global production of these technologies by 2040.
The NZIA also includes provisions to streamline the permitting process for projects that strengthen EU manufacturing capacity. Under the new law, most permits must be issued within six to nine months, speeding up the development and deployment of clean technology projects.
Source: Reuters
