The Brussels think tank Bruegel has identified a number of shortcomings in the Commission’s proposal for a Net-Zero Industry Act (NZIA) (see EUROPE 13143/1). In a publication dated 26 June, Bruegel suggests that the co-legislators, who have the text in their hands, should reboot it completely.
Firstly, listing certain technologies as strategic is not the best way to proceed, according to the authors of the publication. Decision-makers run the risk of supporting the wrong technologies and missing out on others. Instead, they should adopt a technology-neutral approach and broaden the range of technologies covered, according to Bruegel.
The target of producing 40% of the strategic clean technologies deployed in the EU by 2030 is not relevant either, according to the think-tank. For example, this does not take into account the cost of in-house production, compared with the price of cheaper imports.
Bruegel also considers that the accelerated procedures for issuing permits will only benefit carbon extraction or capture projects, as authorisation delays are not one of the barriers to setting up industrial projects. Above all, they face a shortage of skilled labour and funding.
This is why the EU should especially focus on access to finance, lowering energy prices and reducing the fragmentation of policies.
For its part, the Cleantech for Europe organisation recommended that the NZIA’s list of strategic technologies should not be extended, in an open letter dated 19 June. The organisation is concerned that the NZIA will support companies that are already receiving free allowances under the EU Emissions Trading System (ETS).
To see the Bruegel publication: https://aeur.eu/f/7q3
And the Cleantech for Europe website: https://aeur.eu/f/7q2 (Original version in French by Léa Marchal)