EU lawmakers have agreed new rules to encourage domestic production of green technologies as global competition becomes increasingly fierce.
On Tuesday, the European Parliament and the European Council signed a deal on the long-awaited Net Zero Industry Act (NZIA). Key regulations aim to ensure homegrown net-zero technologies can cover at least 40% of the bloc’s demand by 2030.
Joe Browns, Flemish Minister of Economy, Innovation, Labour, Social Economy and Agriculture, said: “NZIA is an important step in building the ecosystem needed to foster the production of clean technologies.”
Technologies designated as “strategic” technologies for the union’s decarbonisation include solar PV, onshore and offshore wind energy, batteries and energy storage, carbon capture, biogas/biomethane and renewable hydrogen. .
Streamline processes
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In response to the US Inflation Control Act, which provides $369 billion in subsidies for US-made green technology, the NZIA aims to create more favorable processes and regulations to encourage investment.
For example, companies in this space are not only in the regulatory sandbox, but also in the expedited process, which is set at up to 18 months for large projects (1 GW and above) and up to 12 months for small projects (less than 1 gigawatt). You can also benefit from generous permission grants. 1 gigawatt or more).
“Streamlining the permitting and licensing process is critical for companies looking to deploy renewable and low-carbon technologies at scale,” said Atul, co-founder and CPO of Oslo-based Xerolytics.・Christiansen told TNW.
The law also introduces net-zero “troughs” with the aim of forming clusters of increased manufacturing activity.
green technology competition
Mr Christiansen said NZIA was at a pivotal time. He said: “European companies, particularly those that prioritize investing in green technologies over legacy ones, risk falling behind international rivals who benefit from stronger subsidy schemes and a lack of net-zero commitments. There is,” he explained.
The IRA provides a concrete example, raising concerns that European companies could be tempted to set up base across the Atlantic. While NZIA is not providing new funding to match the $1 billion subsidy (it is instead aimed at coordinating the EU’s various funds), it has the potential to foster both interest and investment. be.
“Just as we have seen in the United States, where IRAs have played a key role in facilitating the financing of climate technology solutions in North America, we believe this legislation will create more favorable market conditions in Europe and We hope to create trust among ambitious people, “founders and venture capitalists will work together, and that will foster innovation,” says co-founder of Amsterdam-based accelerator remove.global. Marian Kruger, Managing Director, told TNW.
Apart from the US, the EU also needs to match China’s dominance in the global solar power supply chain, which is expected to hold 80% of global manufacturing capacity between 2023 and 2026.
The NZIA is likely to enter into force later this year, subject to final adoption by the Board and Parliament. It remains to be seen whether this legislation (along with other plans in the Green Deal industrial plan) will manage to mobilize people. Investment amount: 1.5 trillion euros Brussels says it is necessary to meet the region’s new climate goal of cutting carbon emissions by 90% by 2040.