The European Union (EU) has taken a significant step towards promoting the use of domestically-made net-zero technologies with the passing of the Net Zero Industrial Act (NZIA). The bill was approved by the legislative branch of the EU with 361 votes in favor, 121 against, and 45 abstentions. This vote is a positive development for European industry as it aligns with the region’s economic, climate, and energy goals.
The NZIA aims to establish deployment targets for various EU-made net-zero equipment, including electrolysers, fuel cells, and other hydrogen technologies. It also provides regulatory advantages to net-zero equipment manufacturers to enhance production capacity. The goal is to have 40% of total electrolyzer deployment being “Made In Europe.”
To achieve this goal, the bill includes provisions for creating “Net-Zero Acceleration Valleys,” where projects seeking to build new manufacturing facilities can delegate some of the necessary environmental assessment tasks to host governments. Additionally, Europe has set a target for capturing 15% of the global market for these technologies.
The purpose of the NZIA is also seen as a way to counter the increasing dominance of Chinese manufacturers in the global net-zero technology market. Currently, Chinese manufacturers hold 34% of the global electrolyser market, with Europe following closely behind at 27%. Some Western electrolyser manufacturers have expressed concerns that EU subsidy programs favoring the lowest production costs could inadvertently subsidize cheaper Chinese equipment. However, this bill aims to promote domestic production and provide regulatory advantages for European manufacturers.
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