NEWS

Provision Deal on Net Zero Industry Act (NZIA)

07/02/2024

A provisional agreement was reached between the EU’s council and parliament on EU’s net-zero technology product manufacturing system known as the net zero industry act (NZIA). This act will be part of the Bloc’s industrial plan, which aims to support net zero GHG emissions by 2050. This new deal will need to be formally endorsed by both parties before its adoption.

The NZIA will establish a framework of measures allocating 40pc of technology production, including solar photovoltaic panels, wind turbines, batteries and heat pumps, to be covered by the bloc’s output. The framework also sets a target for Carbon Capture and Storage (CCS), with an annual injection capacity of at least 50 million tonnes to be achieved by 2030. The NZIA will establish a list of net-zero technologies, with criteria for fast-track permit processes for strategic projects contributing to decarbonisation.

The Commission confirmed its commitment to achieving a 90pc reduction in net greenhouse gas (GHG) emissions by 2040, emphasizing the importance of incorporating significant carbon removal measures.