Greens do not back industry law for net-zero manufacturing valleys

MEPs adopt position on law intended to bolster Europe’s manufacturing output in technologies needed for decarbonisation

EPP MEP Christian Ehler
EPP MEP Christian Ehler

Talks on the final shape of the Net-Zero Industry Act will start with the European Parliament once Council ministers adopt theirposition, as the clean energy tech law was adopted by 376 votes to 139, with 116 abstentions.

The European Greens did not back the report by German MEP Christian Ehler (EPP), which sets a target for Europe to produce 40% of its annual deployment needs in net-zero technologies by 2030, based on National Energy and Climate Plans (NECPs), and to capture 25% of the global market value for these technologies.

MEPs broadened the scope of the draft law to encompass the entire supply chain, including components, materials, and machinery for producing net-zero technologies.

They proposed a wider, more comprehensive list of technologies to be covered, to be updated periodically.

Notably, MEPs included nuclear fission and fusion technologies, sustainable aviation fuels (SAFs), and specific industrial technologies.

The law retains two project classifications: net-zero technology manufacturing projects and net-zero strategic projects, with a streamlined permitting process of nine to 12 months for regular projectsm and six to nine months for strategic projects to be authorised.

MEPs also proposed the creation of ‘Net-Zero Industry Valleys’ initiatives, speeding up the permitting process by delegating parts of the environmental assessment evidence collection to member states.

“With the adoption of this proposal, MEPs are showing they are serious about making Europe fit for industrial manufacturing. Without these steps to reduce the administrative burden, speed up processes, and increased public investment in our industry and innovation, Europe would face decarbonisation by deindustrialisation. This proposal shows we can prevent this,” said Ehler.

A considerable amount of clean energy technology is needed to support reaching Europe’s 2030 and 2050 climate targets, by increasing manufacturing capacity in the EU for these strategic net-zero technologies to at least 40% of annual deployment needs. It would also set an EU level target for annual CO2 injection capacity by 2030 (50 million tonnes).

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