On April 26, 2024, the EU Parliament approved the Net-Zero Industry Act to bolster EU production in technologies needed for decarbonization, while taking steps to withdraw from the Energy Charter Treaty.
All Renewable Technologies
The “Net-Zero Industry Act”, already informally agreed upon with the Council, 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.
European shipowners strongly welcomed the inclusion of clean fuels for shipping, including advanced biofuels and e-fuels, in the net-zero technologies adopted under the Net-Zero Industry Act.
Sustainability Criteria
The legislation will encourage funding from national Emission Trading System (ETS) revenues and for most strategic projects through the Strategic Technologies for Europe Platform (STEP), and it is a step towards a European Sovereignty fund.
“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 (EPP, DE).
The legislation was adopted with 361 votes to 121, with 45 abstentions. It will now have to be formally adopted by Council to become law.
EU Withdrawal
The Energy Charter Treaty (ECT), was established in 1994 to govern trade and investment in the energy sector. However, it has remained largely unchanged since the 1990s, becoming outdated and one of the most litigated investment treaties globally. The Commission proposed a coordinated withdrawal by the European Union and its member states, as it considers the Treaty no longer compatible with the EU’s climate goals under the European Green Deal and the Paris Agreement, predominantly due to concerns over continued fossil fuel investments.
The recommendation to withdraw from the Industry, Research, Energy, and International Trade committees was adopted with 560 votes to 43, with 27 abstentions. Parliament’s consent is required so that the Council can now adopt the decision by a qualified majority.
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Source: Safety4sea
