The Ministers for Competitiveness and Industry of the Member States joined the Spanish Presidency of the Council on Thursday 7 December, at the Competitiveness Council, to validate a general approach on the Net-Zero Industry Act, though not without a few last-minute reservations and adjustments.
As we detailed previously (see EUROPE 13308/9), two points in the text were considered to be ‘key political issues’ ahead of the meeting, in other words points of disagreement that are still present.
Article 3, which defines strategic technologies, and above all Article 20, which sets out the conditions for market access and auctions.
If the inclusion of nuclear power did not ultimately hinder the adoption of a general approach, it is partly because the Council text ensures respect for the energy sovereignty of the Member States, mentioning that the list of technologies endorsed as ‘strategic’ “is without prejudice to the allocation of Union funding, in particular [...] on Union support through the European Investment Bank”.
The problems of funding these technologies, which are implicitly linked to the STEP platform (see EUROPE 13273/23), have been raised by Denmark and Italy, but should only be resolved during the discussions directly linked to the revision of the Multiannual Financial Framework, which should determine the definitive resources allocated to STEP as well as their scope of action.
It is at this point that the delicate debate surrounding the possible financing of nuclear technologies, as designated in the NZIA, by the funds allocated to STEP should arise. Several Member States, notably Germany, are opposed to such funding.
Article 20, for its part, was the subject of more reservations, as well as the addition of a recital by France. The approved text mentions qualification criteria other than those relating to project prices, in connection with their contribution to the Union’s resilience and sustainability.
In particular, it states that 20% of the total volume of projects studied by the Member States must take account of these non-price criteria. This request has been made by France, which hopes to be able to ensure that this threshold is raised every two years between now and 2030 in order to “ramp up”, according to Roland Lescure, Minister Delegate for Industry. This would be possible by means of a delegated act from the Commission and after an impact assessment.
However, Member States have the option of ignoring these criteria if taking them into account “unreasonably increases the cost of the project”, with a threshold set at 20% of the price. Poland, in particular, insisted on the importance of this flexibility, stating that it would support “the lowest levels” during the trilogue negotiations.
While not all Member States expressed the same degree of enthusiasm for the final version of the negotiating mandate, the EU27 did express a broad consensus and stressed the vital importance of the text for the European economy, its competitiveness on a global scale and its green transition.
The first trilogue is scheduled for 13 December. Two more will follow, on 22 January and 6 February. It is therefore possible that an institutional agreement will be finalised under the Belgian Presidency of the Council.
To see the negotiating mandate, go to https://aeur.eu/f/a16 (Original version in French by Isalia Stieffatre)