The Net Zero Industry Act is intended to further promote industrial decarbonisation, according to the text’s rapporteur in the European Parliament, Christian Ehler (EPP, German). He submitted a first version of his report to his colleagues on Tuesday 30 May, in which he proposed deleting the list of eight strategic ‘net zero’ technologies.
He suggested removing the distinction between these and other ‘net zero’ technologies, so as not to treat them differently, as proposed by the European Commission (see EUROPE 13143/1). The benefits that the European Commission granted to strategic projects – i.e. those that are the most advantageous – should relate to all ‘net zero’ technologies. The MEP also explained how these were defined in the 2020 regulation on EU taxonomy.
This will “rationalise the definition, thereby avoiding the creation of an additional list and ensuring policy coherence throughout the Union”, explained Mr Ehler. It also settles the question of the role of nuclear power: it is mentioned in the taxonomy regulation as a transition technology and therefore has a place among the ‘net zero’ technologies.
In the same spirit of broadening the coverage of the text, the MEP is of the opinion that the projects covered by the regulation should include the production of components, materials and machinery necessary for the production of ‘net zero’ technologies.
Review of objectives
Christian Ehler is also challenging the European Commission’s target of producing 40% of the EU’s requirements in strategic ‘net zero’ technologies by 2030. Instead, he suggested setting a target of 25% of global demand for ‘net zero’ technologies to be produced in the EU by 2030.
Facilitating the implementation of projects
In order to achieve these objectives, the Net Zero Industry Act must provide even more support for project developers. This involves shortening the deadlines for granting permits compared with the European Commission’s proposal: 9 months instead of 12 for projects with an annual output of less than 1 gigawatt and 12 months instead of 18 for capacity of more than 1 gigawatt, according to Mr Ehler’s report.
He also emphasised the need to drastically reduce the administrative burden for “industrial activities” in general. To achieve this, he has set quantified targets: the “general regulatory burden on industry” should be reduced by 20% by 2030. For start-ups and SMEs, this target should be 40% by 2030.
The rapporteur also returned to an idea that the European Commission had envisaged in a provisional version of the act (see EUROPE 13135/1): the introduction of “Net Zero Industry Valleys”. These should make it possible to group together net-zero activities, “increase appeal” and “streamline administrative procedures”.
Specify financing
For Christian Ehler, as for many other stakeholders, the ‘Net Zero Industry Act’ lacks any details about project financing. Through a number of amendments, he set out the support that the Commission must provide to project leaders to guide them through funding opportunities.
In addition, he proposes that Member States allocate at least 25% of national revenues from the Emissions Trading System (ETS) each year to pursue the objectives of the Act.
The European Parliament’s Industry Committee is due to consider Mr Ehler’s report in the coming weeks and MEPs will have until 19 June to submit their amendments.
See the first version of the report: https://aeur.eu/f/74g (Original version in French by Léa Marchal)