EU passes new law which mandates 40% domestic green tech production
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The European Union has approved a new law to ensure that 40% of its clean technology, including solar panels and wind turbines, is produced within the bloc. This move will boost the European industry’s competitiveness against US and Chinese rivals.
The law, known as the Net Zero Industry Act (NZIA), is set to come into effect next month or early July, pending signatures from the presidents of the European Parliament and the Council and publication in the EU’s official journal.
The act is at the forefront of the EU’s efforts to secure its position as a leader in reducing greenhouse gas emissions and as a top manufacturer of necessary technology.
Also read: EU enforces new methane emissions regulations
The EU has established a goal of manufacturing 40% of the products necessary to reduce greenhouse gas emissions by 2030. This includes renewable energy sources, nuclear power, heat pumps, electrolysers, and other decarbonizing technologies such as carbon capture.
Additionally, the EU aims to achieve 15% of global production of these technologies by 2040. To facilitate this, the NZIA aims to simplify the permit-granting process for projects that enhance EU manufacturing, with the goal of issuing most permits within six to nine months.
With China projected to hold 80% of the world’s solar power manufacturing capacity, Europe’s dependence on it is growing.
Additionally, there are worries within the EU that the $369 billion allocated for green subsidies in the US Inflation Reduction Act could potentially lure European producers to move their operations.
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