Europe’s net-zero industry law will do little for manufacturing ambitions, experts say

(EurActiv, 26 Apr 2024) The EU’s Net-Zero Industry Act (NZIA) will have little impact on Europe’s target to produce more technologies needed for the energy transition, experts told Euractiv, arguing that a new large-scale initiative was necessary after the EU elections.

The measure – adopted by the European Parliament on Thursday (25 April) with 361 votes in favour, 121 against and 45 abstentions – enshrines the target of producing 40% of domestic needs for so-called ‘net-zero’ technologies in Europe.

The scope of the law was significantly widened during the legislative process, now covering 19 technologies, including solar panels and wind turbines, traditional nuclear fission, CCS, biotech, and electricity grid technologies.

However, Simone Tagliapietra, a senior fellow at think-tank Bruegel, told Euractiv that the EU lacks the instruments to ensure that these targets can be met, calling the NZIA objectives “paper tigers.”

Despite introducing provisions to set out deadlines for permitting procedures related to new manufacturing sites for green technologies and new rules for public procurement and subsidy schemes, the legislation itself “doesn’t change anything”, he added.

Permitting no ‘key bottleneck’ for manufacturing

His view is shared by Nils Redeker, deputy director of the Berlin-based Jacques Delors Centre, who said that the duration of permitting procedures is “not decisive” for whether investments into new manufacturing sites would happen within Europe or elsewhere.

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EurActiv, 26 Apr 2024: Europe’s net-zero industry law will do little for manufacturing ambitions, experts say