Net-Zero Technologies and Projects to be Given Priority and Faster EU Approval
Companies that develop net-zero technology manufacturing projects identified as having a greater potential for decarbonisation will benefit from fast-track permit procedures for construction or expansion and guidance in accessing finance, under new legislation set to be passed at EU level.
Under a provisional agreement reached by the European Parliament and the Council, the EU’s two main legislative bodies after the European Commission, there will be a single list of net-zero technologies, with criteria for selecting strategic projects in those technologies that will contribute better to decarbonisation. For example, the Act recognises carbon capture and storage as strategic net-zero technologies and supports project deployment with regulatory measures, including accelerated permitting procedures.
Also under the draft legislation, the Net Zero Industry Act, market entry access conditions for strategic technology products will also be lowered, the development of new net-zero acceleration technology hubs, or “valleys” will be encouraged, and public procurement and auction rules will give priority to those new technologies.
Further, the Act proposes new regulatory frameworks to develop, test and validate innovative technologies (known as regulatory sandboxes).
Progress towards the objectives of the Act will be measured by two indicative benchmarks: reaching 40% of the production required to cover EU’s needs in strategic technology products, and
The agreed criteria for approval of certification schemes will ensure that carbon removals are:
* correctly quantified
* stored for an agreed long-term period (a minimum of 35 years for carbon stored in products)
* go beyond existing practices and don't just reward the status quo
* and also contribute to broader sustainability goals, for instance by providing positive impacts on biodiversity.
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their evolution in comparison to world production for products such as solar photovoltaic panels, wind turbines, batteries and heat pumps.
The legislation also proposes to ease market access for strategic technology products, enhance the skills of the European workforce in these sectors (notably through the launching of net-zero industry academies) and create a platform to coordinate EU action.
The time for project approval will be hastened, with the time limit for issuing a permit for constructing or expanding large net-zero technology manufacturing projects (more than 1 gigawatt), as well as those not measured in gigawatts, to be a maximum of 18 months. For smaller projects (less than 1 gigawatt), the time limit for delivering the permit will be 12 months. Shorter deadlines will be set for strategic projects.
The Act is one of the three key legislative initiatives of the Green Deal Industrial Plan, together with the Critical Raw Materials Act and the electricity market design reform, to enhance the competitiveness of Europe's net-zero industry and support a rapid transition to climate neutrality.
The Commission tabled its proposal on 16 March 2023. The European Parliament adopted its position on 21 November 2023 and the Council its general approach on 7 December 2023. The provisional agreement reached now needs to be endorsed and formally adopted by both the Parliament and the Council.