EU Clears Net Zero Industry Act to Boost Clean Tech Production

Europe has approved the Net Zero Industry Act (NZIA) to counter the US Inflation Reduction Act and China's clean tech dominance. Pending signatures from the presidents of the European Parliament and the European Council, the law is expected to take effect in June or early July.

The NZIA mandates that European nations produce 40% of the clean tech equipment they consume, covering solar, wind, batteries, heat pumps, geothermal, electrolysers, fuel cells, biogas, CCS, and grid technologies. It also aims for the EU to achieve 15% of global production by 2040.

Public authorities will need to prioritize sustainability and resilience, alongside price, in their procurement processes. European Commission President Ursula von der Leyen stated, "The Act creates the best conditions for sectors crucial to reaching net-zero by 2050. Demand is growing, and we are now equipped to meet more of this demand with European supply."