Europe Takes Action: Passage of Net Zero Industrial Act Boosts Domestic Manufacturing of Net-Zero Technologies

Yesterday, the European Parliament (EP) passed the Net Zero Industrial Act (NZIA), aimed at boosting the production and deployment of domestically-made net-zero technologies. The bill seeks to increase manufacturing capability and deployment targets for EU-produced net-zero equipment, such as hydrogen equipment, electrolyzers, fuel cells, and other H2 kit.

The NZIA is seen as a measure to counter the increasing dominance of Chinese manufacturers in the global net-zero technology market. Currently, Chinese manufacturers 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.

To encourage net-zero equipment manufacturers, the bill includes provisions for streamlining permitting and offering regulatory perks. The aim is to achieve “Made In Europe” targets for total electrolyzer deployment. Additionally, the NZIA sets a target for Europe to capture 15% of the global market for net-zero technologies.

Christian Ehler, leading the bill in the European Parliament, stated that this vote is positive news for European industry and sets the tone for future economic, climate, and energy ambitions. The NZIA is seen as a step towards making the European market suitable for achieving these goals.

The creation of “Net-Zero Acceleration Valleys” is also outlined in the NZIA adopted by EP to support projects seeking to build new manufacturing facilities. This will help accelerate progress towards achieving net-zero emissions across all sectors of society while promoting innovation and competitiveness within industries like steelmaking and cement production.