Europe Embraces Net-Zero Industrial Act, Boosting Domestic Manufacturing Capability

The European Parliament (EP) has officially adopted the Net Zero Industrial Act (NZIA) in an effort to promote the production and deployment of domestically-made net-zero technologies, such as hydrogen equipment. The bill aims to boost manufacturing capability and deployment targets for EU-produced net-zero equipment, including electrolyzers, fuel cells, and other H2 kit.

The joint position on the NZIA was agreed upon by the EP and Council in February, making it highly likely to pass this final hurdle as well. The bill includes provisions for streamlining permitting and offering regulatory perks to net-zero equipment manufacturers, with a goal of 40% of total electrolyzer deployment being “Made In Europe”. Additionally, the text of the NZIA adopted by the EP outlines the creation of “Net-Zero Acceleration Valleys” to support projects seeking to build new manufacturing facilities.

The bill also sets a target for Europe to capture 15% of the global market for net-zero technologies. Christian Ehler, the Member of the European Parliament leading the bill, stated that the vote is positive news for European industry and sets the tone for future economic, climate, and energy ambitions. The NZIA is seen as a step towards making the European market suitable for achieving these goals.

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