Negotiations are well underway between the shadow rapporteurs on the ‘Net Zero Industry Act’ (NZIA) in the European Parliament. With the vote due to take place on 25 October in the Industry Committee (ITRE), several of the main elements of the text are stable between the negotiators. This is the case for the objectives of the regulation, the selection criteria for strategic ‘net zero’ projects and the deadlines for granting permits, according to a compromise document consulted by EUROPE.
The political groups in the European Parliament do not want to change the objective of producing 40% of the ‘net zero’ technologies consumed by the Union in the EU by 2030. On the other hand, they are adding a target of 25% of global demand by 2030 for these same technologies.
Distinguishing strategic projects
As we previously wrote (see EUROPE 13245/2), the rapporteurs on the NZIA do not wish to maintain a list of eight strategic technologies in addition to the broader list of ‘net zero’ technologies including nuclear (see EUROPE 13245/2).
In their view, a distinction should be made between strategic projects, which will be able to benefit from more advantageous installation conditions, but these should not be based on the type of technology. A project will only have to meet one of the three criteria.
It should, for example, contribute to the EU’s resilience by adding production capacity for ‘net zero’ technologies, for which the EU is more than 50% dependent on imports from a single country.
Another option is for the project to contribute to the EU’s competitiveness by adding what is known as “peak” production capacity.
Finally, the third selection criterion concerns the contribution to the EU’s environmental and climate objectives. This means having low-carbon manufacturing processes, for example.
It should be noted that industrial projects can also involve the production of components for ‘net zero’ technologies, or the machinery used primarily to manufacture them, depending on the compromise.
It will be up to the European Commission to adopt, by means of an implementing act (3 months after the entry into force of the text), definitions to qualify a component, a machine or advanced manufacturing processes, according to the negotiators.
Licensing deadlines
The shadow rapporteurs want to make it even easier to set up projects by shortening the time taken to grant permits. For strategic projects, the authorities should respond within 6 to 9 months, depending on production capacity (compared with 9 to 12 months in the Commission’s proposal).
For ‘net zero’ technology projects not recognised as strategic, the deadlines are 9 to 12 months (12 to 18 in the Commission’s proposal).
Over the next few days, the negotiators will be looking at the “market access” part of the regulation and, in particular, the preference criteria for awarding public procurement contracts. According to a source close to the matter, the shadow rapporteurs want to give even greater priority to European projects when awarding public procurement contracts. (Original version in French by Léa Marchal)