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Net-Zero Industry Act

Intro

The Net-Zero Industry Act (NZIA) creates a regulatory framework to boost the competitiveness of EU industry and technologies crucial for decarbonisation. The Act sets a goal for net-zero manufacturing capacity to meet at least 40% of the EU’s annual deployment needs by 2030 

The NZIA is an initiative stemming from the Green Deal Industrial Plan which aims to scale up the manufacturing of clean technologies in the EU. 

Timeline

  • 29/06/2024: Entry into force 

    • Highlights

    List of net-zero technologies

    The article 4 of the NZIA, listing the net-zero technologies in the scope, includes solar thermal technologies, enabling the development of the solar thermal industry in Europe. 

    Benchmarks

    The objective of the Regulation is to have at least 40% of the annual deployment needs for net-zero technologies manufactured in the EU by 2030. 

    Streamlining permitting

    The NZIA requires Member States to set up one-stop shops that act as single points of contact for project promoters within 6 months of entry into force of the Act. These single points of contact will facilitate and coordinate the entire permit-granting process and will also advise net-zero projects regarding other important questions relevant to attracting investments and scaling-up net-zero projects in the EU. To further reduce red tape, the NZIA ensures that authorities accept all documents electronically and that they consider pre-existing relevant studies and permits to avoid duplication. 

    Net-zero strategic projects 

    Under the NZIA, project promoters can apply for ‘net-zero strategic project’ status. Net-zero strategic projects enjoy national ‘priority status’ under the NZIA Regulation, ensuring rapid administrative treatment and faster permitting. Where applicable, urgent treatment in judicial and dispute resolution procedures, and simplified assessments for specific environmental legislation derogations are also provided.  

    The deal also introduces the concept of Net-Zero Acceleration Valleys, which can be set up by Member States to facilitate the creation of clusters of net-zero industrial activity and further streamline administrative procedures.  

    Public procurement procedures 

    Article 25 of the NZIA empowers the European Commission to adopt an implementing act establishing specific minimum requirements on environmental sustainability for public procurement procedures. This implementing act should be adopted by 30 March 2025. Moreover, it introduces a resilience criterion that requires public buyers to diversify supply sources and consider at least one criterion among social sustainability, cyber security and timely delivery obligations. 

    Net Zero Industry Academies 

    The Act establishes Net-Zero Industry Academies to develop learning content for education and training providers in EU countries. These academies will develop learning credentials to facilitate the mobility of learners and the portability of qualifications in regulated professions. Each academy will focus on one net-zero industry technology and aim to train 100.000 learners each within three years of establishment. 

    Public support schemes 

    The Act also addresses forms of public intervention, including support programs that encourage households and businesses to purchase net-zero technology products, such as initiatives that promote the installation of rooftop solar panels on private homes. 

    Measures for SMEs and start-ups 

    Member States must grant SMEs and start-ups priority access to net-zero regulatory sandboxes, if they meet the eligibility requirements of Article 33, organise awareness-raising activities to encourage their participation, set up, if necessary, a dedicated communication channel to guide and answer their questions. 

    They must also take account of the specific needs of SMEs and start-ups, provide them with appropriate administrative support and inform them of the funding available for their activities in these sandboxes. 

    Relevant Documentation

     

  • 29/06/2024: Entry into force 

    • Highlights

    List of net-zero technologies

    The article 4 of the NZIA, listing the net-zero technologies in the scope, includes solar thermal technologies, enabling the development of the solar thermal industry in Europe. 

    Benchmarks

    The objective of the Regulation is to have at least 40% of the annual deployment needs for net-zero technologies manufactured in the EU by 2030. 

    Streamlining permitting

    The NZIA requires Member States to set up one-stop shops that act as single points of contact for project promoters within 6 months of entry into force of the Act. These single points of contact will facilitate and coordinate the entire permit-granting process and will also advise net-zero projects regarding other important questions relevant to attracting investments and scaling-up net-zero projects in the EU. To further reduce red tape, the NZIA ensures that authorities accept all documents electronically and that they consider pre-existing relevant studies and permits to avoid duplication. 

    Net-zero strategic projects 

    Under the NZIA, project promoters can apply for ‘net-zero strategic project’ status. Net-zero strategic projects enjoy national ‘priority status’ under the NZIA Regulation, ensuring rapid administrative treatment and faster permitting. Where applicable, urgent treatment in judicial and dispute resolution procedures, and simplified assessments for specific environmental legislation derogations are also provided.  

    The deal also introduces the concept of Net-Zero Acceleration Valleys, which can be set up by Member States to facilitate the creation of clusters of net-zero industrial activity and further streamline administrative procedures.  

    Public procurement procedures 

    Article 25 of the NZIA empowers the European Commission to adopt an implementing act establishing specific minimum requirements on environmental sustainability for public procurement procedures. This implementing act should be adopted by 30 March 2025. Moreover, it introduces a resilience criterion that requires public buyers to diversify supply sources and consider at least one criterion among social sustainability, cyber security and timely delivery obligations. 

    Net Zero Industry Academies 

    The Act establishes Net-Zero Industry Academies to develop learning content for education and training providers in EU countries. These academies will develop learning credentials to facilitate the mobility of learners and the portability of qualifications in regulated professions. Each academy will focus on one net-zero industry technology and aim to train 100.000 learners each within three years of establishment. 

    Public support schemes 

    The Act also addresses forms of public intervention, including support programs that encourage households and businesses to purchase net-zero technology products, such as initiatives that promote the installation of rooftop solar panels on private homes. 

    Measures for SMEs and start-ups 

    Member States must grant SMEs and start-ups priority access to net-zero regulatory sandboxes, if they meet the eligibility requirements of Article 33, organise awareness-raising activities to encourage their participation, set up, if necessary, a dedicated communication channel to guide and answer their questions. 

    They must also take account of the specific needs of SMEs and start-ups, provide them with appropriate administrative support and inform them of the funding available for their activities in these sandboxes. 

    Relevant Documentation

     

    Highlights

    List of net-zero technologies

    The article 4 of the NZIA, listing the net-zero technologies in the scope, includes solar thermal technologies, enabling the development of the solar thermal industry in Europe. 

    Benchmarks

    The objective of the Regulation is to have at least 40% of the annual deployment needs for net-zero technologies manufactured in the EU by 2030. 

    Streamlining permitting

    The NZIA requires Member States to set up one-stop shops that act as single points of contact for project promoters within 6 months of entry into force of the Act. These single points of contact will facilitate and coordinate the entire permit-granting process and will also advise net-zero projects regarding other important questions relevant to attracting investments and scaling-up net-zero projects in the EU. To further reduce red tape, the NZIA ensures that authorities accept all documents electronically and that they consider pre-existing relevant studies and permits to avoid duplication. 

    Net-zero strategic projects 

    Under the NZIA, project promoters can apply for ‘net-zero strategic project’ status. Net-zero strategic projects enjoy national ‘priority status’ under the NZIA Regulation, ensuring rapid administrative treatment and faster permitting. Where applicable, urgent treatment in judicial and dispute resolution procedures, and simplified assessments for specific environmental legislation derogations are also provided.  

    The deal also introduces the concept of Net-Zero Acceleration Valleys, which can be set up by Member States to facilitate the creation of clusters of net-zero industrial activity and further streamline administrative procedures.  

    Public procurement procedures 

    Article 25 of the NZIA empowers the European Commission to adopt an implementing act establishing specific minimum requirements on environmental sustainability for public procurement procedures. This implementing act should be adopted by 30 March 2025. Moreover, it introduces a resilience criterion that requires public buyers to diversify supply sources and consider at least one criterion among social sustainability, cyber security and timely delivery obligations. 

    Net Zero Industry Academies 

    The Act establishes Net-Zero Industry Academies to develop learning content for education and training providers in EU countries. These academies will develop learning credentials to facilitate the mobility of learners and the portability of qualifications in regulated professions. Each academy will focus on one net-zero industry technology and aim to train 100.000 learners each within three years of establishment. 

    Public support schemes 

    The Act also addresses forms of public intervention, including support programs that encourage households and businesses to purchase net-zero technology products, such as initiatives that promote the installation of rooftop solar panels on private homes. 

    Measures for SMEs and start-ups 

    Member States must grant SMEs and start-ups priority access to net-zero regulatory sandboxes, if they meet the eligibility requirements of Article 33, organise awareness-raising activities to encourage their participation, set up, if necessary, a dedicated communication channel to guide and answer their questions. 

    They must also take account of the specific needs of SMEs and start-ups, provide them with appropriate administrative support and inform them of the funding available for their activities in these sandboxes. 

    Relevant Documentation

     

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