Industrial policy: Council gives final approval to the net-zero industry act

The Council has adopted a regulation on establishing a framework of measures for strengthening Europe’s net-zero technology manufacturing ecosystem, better known as the ‘net-zero industry act’.

This is the last step in the decision-making process.

The regulation aims to boost the industrial deployment of net-zero technologies that are needed to achieve the EU’s climate goals, using the strength of the single market to reinforce Europe’s position as a leader in industrial green technologies.

Boosting green technologies

The net-zero industry act will create favourable conditions for investment in green technologies by:

  • simplifying the permit-granting process for strategic projects
  • facilitating market access for strategic technology products (in particular in public procurement or the auctioning of renewable energies)
  • enhancing the skills of the European workforce in these sectors (i.e. with net-zero industry academies and high-concentration industrial areas or ‘valleys’)
  • creating a platform to coordinate EU action in this area

To foster innovation, the legal act proposes to create favourable regulatory frameworks for developing, testing and validating innovative technologies (known as ‘regulatory sandboxes’).

Progress towards the objectives of the net-zero industry act will be measured by two indicative benchmarks. Firstly, manufacturing capacity of net-zero technologies, such as solar photovoltaic panels, wind turbines, batteries and heat pumps, reaching 40% of the EU’s deployment needs. Secondly, a specific target for an increased Union share for these technologies with a view to reaching 15 % of world production by 2040.

In addition, the net-zero industry act sets up an annual injection capacity of at least 50 million tonnes of CO2 to be achieved by 2030 in geological storage sites located in the territory of the Union.

Next steps

Following the Council’s approval of the European Parliament’s position, the legislative act has been adopted.

After being signed by the President of the European Parliament and the President of the Council, the regulation will be published in the Official Journal of the European Union and will enter into force on the day of its publication.

Source: Council of the EU | Press releases (