On April 25, the European Parliament approved the Net-Zero Industry Act to bolster EU production in technologies needed for decarbonization.
The Net-Zero Industry Act sets a target for Europe to produce 40% of its annual deployment needs in net-zero technologies by 2030, based on National Energy and Climate Plans (NECPs) and to capture 15% of the global market value for these technologies.
Technologies to be supported include all renewable technologies, nuclear, industrial decarbonization, grid, energy storage technologies, and biotech. The law will simplify the permitting process, setting maximum timelines for projects to be authorized depending on their scope and output.
“This vote is good news for European industry and sets the tone for the next term. To achieve all our economic, climate and energy ambitions, we need industry in Europe. This Act is the first step to making our market fit for this purpose,” said lead MEP Christian Ehler .
European shipowners have strongly welcomed the inclusion of clean fuels for shipping , including advanced biofuels and e-fuels , in the list of net-zero technologies adopted under the new law.
The introduction of a benchmark for the Commission and the EU Member States to match 40% of the deployment needs for clean fuels for shipping with production capacity is said to be a vital step to ensure that clean fuels for shipping are made available in the market at an affordable price, as a prerequisite for shipping to meet its target under the Fuel EU Maritime Regulation.
Scaling up the production and uptake of clean fuels for shipping is a top priority for European shipping, according to the European Community Shipowners’ Associations (ECSA).
“European shipowners have consistently requested for a mandate on the European fuel suppliers to scale up and make clean, affordable and safe fuels available in the market. Matching European fuel industrial capacity with the EU targets under the FuelEU Maritime is essential. We welcome the 40% benchmark for the production of clean fuels such as advanced biofuels and e-fuels as a stepping stone towards an international scale-up of alternative sustainable fuels for shipping. We will work closely with the Commission to ensure that the 40% benchmark is translated into immediate action,” Sotiris Raptis , ECSA’s Secretary General, commented.