The Net Zero Industry Act (NZIA) in the spotlight – a crucial topic on the European Commission’s table.
Brief overview of The Net Zero Industry Act (NZIA)
In March 2023, the European Commission published a legislative proposal which followed as an EU response to the US Inflation Reduction Act: The Net Zero Industry Act (NZIA). The NZIA proposal, part of the massive EU Green Deal Industrial Plan, did not pass through the usual ex-ante exercise done by European Commission services to assess the likely impact of the proposal compared to alternatives. It was only followed-up by a working document discussing NZIA investment needs and funding options.
The NZIA aims at promoting investment in the manufacturing of products that are key in meeting the EU’s climate neutrality goals.
By accelerating the development and production of net-zero technologies, the NZIA also aims to reduce the risk of replacing EU reliance on Russian fossil fuels with other strategic dependencies on key technologies and components for the green transition.
Overall, this initiative should contribute to strengthening European self-sufficiency and the resilience of net zero manufacturing technologies in the EU, in order to meet REPowerEU objectives, which will make up the backbone of an affordable, reliable, and sustainable clean energy system.
Does NZIA foresee a reshaping?
The European Parliament Environment Committee (ENVI) will vote its opinion on the file in September 2023, followed by the Industry Committee’s (ITRE) deliberation on its position in October. The Council is due to agree on its negotiating position (general approach) by early December 2023.
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