Net-zero industry act: a benchmark for the manufacturing capacity of strategic net-zero technology products
The EU will scale up the manufacturing of clean technologies in the EU.
In May 2024, the Council adopted the net-zero industry act.
This will accelerate progress towards the EU’s 2030 climate and energy targets and the transition to climate neutrality, while:
- boosting the competitiveness of EU industry
- creating quality jobs
- supporting the EU’s efforts to become energy independent
Net-zero industry act: a benchmark for the manufacturing capacity of strategic net-zero technology products
Objectives of the net-zero industry act:
- to promote investments in the production capacity of key products that ensure the EU’s climate neutrality goals
- to create a simple legal framework for EU-based net-zero industries
- to cover 40% of domestic needs in the EU with domestically-produced clean technologies by 2030
These objectives are in the context of reaching the climate neutrality goal by reducing net greenhouse gas emissions by at least 55% by 2030 compared to 1990.
List of strategic net-zero technologies relies on three criteria:
- mature net-zero technologies
- a contribution to decarbonisation and competitiveness
- the existence of a security of supply risk
Examples of strategic net-zero technologies
- Solar photovoltaic and solar thermal
- objectives of over 320 GW of newly installed solar photovoltaic capacity by 2025, and 600 GW by 2030.
- Could deliver: €60 billion of GDP per year in Europe and 400 000 new jobs
- Onshore wind and offshore renewables
- capacity to grow from 204 GW in 2022 to more than 500 GW in 2030
- By 2030 at least 42.5% of renewables
- Batteries
Collection targets:
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- portable batteries targets are 63% in 2027 and 73% by 2030
- batteries from light means of transport, the target are 51% in 2028 and 61% by 2030
- material recovery targets for lithium will be 50% by 2027 and 80% by 2030
- Heat pumps
- 2021: existing buildings using heat pumps = 2 million units
- 2025: existing buildings using heat pumps = 3 million units + new buildings 1.2 million units
- 2030: existing buildings using heat pumps = 5 million units + new buildings 1.5 million units
- predictions are that heat pumps will lower Europe’s gas demand for heating in buildings by at least 21 billion cubic metres by 2030
- Renewable hydrogen
- hydrogen represents about 2% of the EU's energy mix
- by 2050, hydrogen could represent 20 % of Europe’s energy mix. Of this 20-50% of energy demand in transport, 5-20% in industry
- Biomethane and biogas
- in 2021 biogas and biomethane production represented the same amount of natural gas consumption of Belgium, 196TWh.
- EU biomethane production must reach 35 billion cubic metres (bcm) per year by 2030
- CO2 capture and storage (CCS)
- CCS is expected to grow to 80 million tonnes of CO2 in 2030 and reach at least 300 million tonnes in 2040
- annual injection capacity of at least 50 million tonnes of CO2 in storage sites located in the EU, its exclusive economic zones or on its continent shelf
- Grid technologies
- In 2024, 77% of European consumers will have a smart meter for electricity and 44% will have one for gas
HOW:
- faster permit-granting processes to construct, extend change and operate net-zero manufacturing projects
- 12 months for projects of less than 1 GW annually
- 18 months for larger projects
- support from a “one-stop shop”
- a simple legal framework for EU-based net zero industries
- fostering innovation: member states will be able to support innovation by creating net-zero regulatory sandboxes to support early-stage innovation
- access to markets by stimulating consumer demand and public procurement
- net-zero Europe platform as a coordination mechanism for discussion, information exchange and sharing of best practices on issues related to this regulation
- enhancing skills (skills academies): developing the skilled workforce and quality jobs required for net-zero industry in Europe
Global market
The net-zero technology global market is worth about €600 billion per year by 2030
Source: European Commission, Edelman Global Advisory, Carbon Gap
Last review: 3 February 2025