The European Union (EU) has formally cleared a new law aimed at increasing domestic production of green technology. The Net Zero Industry Act (NZIA) is set to ensure that the EU produces 40% of its solar panels, wind turbines, heat pumps, and other clean tech equipment. This move is designed to help European industry compete with US and Chinese rivals.
The NZIA is a centerpiece of the EU’s push to not only be a global leader in reducing greenhouse gas emissions, but also in manufacturing the technology required. The Act will come into force next month or early July, once it has been signed by the presidents of the European Parliament and the Council and is published in the EU’s official journal.
The EU has set a 2030 target of producing 40% of the products it needs to reduce greenhouse gas emissions. These products will cover renewable energy, nuclear power, heat pumps, electrolyzers, and other decarbonizing technologies, including carbon capture. The EU is also aiming to reach 15% of global production of these technologies by 2040.
The NZIA proposes streamlining the granting of permits for projects that boost EU manufacturing, ensuring most are issued within six to nine months. Public authorities buying clean tech products will have to base their choices not only on price but with a 30% weighting to an offer’s sustainability and resilience – the degree to which the EU relies on supply from a single third country.
The target will be particularly challenging in the solar sector, given EU manufacturers supply fewer than 3% of EU panel deployments and are fighting for survival. The EU wind energy sector is far stronger, although Chinese companies are gaining a foothold.
Read more: finance.yahoo.com