CFE Statement: NZIA will help Boost Investments in Manufacturing Carbon-Free Technologies

Brussels—Today, Carbon-Free Europe (CFE) released a statement from its Co-Founder, Lindsey Walter, welcoming the Council’s official endorsement of the Net-Zero Industry Act (NZIA). This was the final step in a legislative process, which establishes a regulatory framework aiming to boost the industrial deployment of net-zero technologies in the EU.

“We support the tools agreed as part of the NZIA. Once implemented, they will help Europe achieve its climate objectives while strengthening the bloc's net-zero manufacturing capacity. At the same time, the NZIA must be complemented with additional strategies to bridge the clean-tech investment gap necessary for scaling net-zero technologies in the EU.”

CFE’s Take on Key Components of the NZIA

Broad scope of net-zero technologies that will benefit from the NZIA

Compared with the Commission’s initial proposal, the final text includes an extended list of net-zero technologies that will receive favourable treatment, which should allow Member States to support technologies most suitable for their national conditions. In addition, the final text covers not only final products but their whole supply chains.

Favourable and streamlined investment procedures in carbon-free technologies

The final text of the NZIA introduces a number of mechanisms and measures aiming at streamlining investment procedures in selected net-zero technologies. These measures, including faster permitting procedures, creation of regulatory sandboxes and one-stop-shops for investments, will simplify the investment processes and make them much faster compared with the current standards.

Recognising the importance of carbon capture technologies in the EU’s green transition

By including an annual injection capacity target for CO2 to be achieved in geological storage sites, the Regulation recognises the importance and role for carbon capture technologies. In addition, both carbon capture utilisation and storage have been included in the final list of net-zero technologies.

Resilience & sustainability contributions emphasised under green-tech procurement procedures

The NZIA introduces significant changes to the way the purchase of net-zero technologies will be conducted in EU Member States. Under the new rules, adding the environmental sustainability contribution will be obligatory with a possible addition of the resilience contribution under specific conditions (certain level of dependence on third countries). Introducing such changes should limit the level of dependence on a single provider of selected technologies while boosting local content and manufacturing capacity in the EU.

Funding for low-carbon technologies

Although the final text introduces a direct link between the NZIA and the Strategic Technologies for Europe Platform (STEP), it doesn’t provide sufficient sources of funding for supporting the deployment of selected net-zero technologies in the EU which leaves a significant clean-tech investment gap that should be addressed.