Europe Boosts Domestic Production of Net-Zero Technologies with New Act

In an effort to boost the production and deployment of domestically-made net-zero technologies, such as hydrogen equipment, the European Parliament (EP) has officially adopted the Net Zero Industrial Act (NZIA) yesterday. The bill aims to streamline permitting and offer regulatory perks to net-zero equipment manufacturers, with a goal of 40% of total electrolyzer deployment being “Made In Europe”.

The NZIA is seen as a step towards making the European market suitable for achieving its climate and energy ambitions. It 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 bill also includes provisions for creating “Net-Zero Acceleration Valleys” to support projects seeking to build new manufacturing facilities. This measure is aimed at countering the increasing dominance of Chinese manufacturers in the global net-zero technology market. Chinese manufacturers currently hold 34% of the global electrolyzer market, with Europe in second place at 27%.

European electrolyzer manufacturers have raised concerns that EU subsidy schemes favoring low-cost production could inadvertently support cheap Chinese equipment. However, with this new act, they hope to level playing field and promote domestic production of net-zero technologies. The NZIA is now awaiting approval from the European Council before becoming European law.